South Korea's Ministry of National Defense is investing about 24.2 billion won ($16.3 million) to build a defense-specialized hyperscale AI platform that fuses large language models with command-and-control capabilities, with two consortiums competing for the award. One is led by LIG Nex1 as prime, teamed with Samsung SDS, SK Telecom, and LG AI Research; the other is led by Hanwha Systems with Naver Cloud. The platform is designed to process multimodal battlefield information — text, imagery, video, voice, sensor, and radar data — to support Joint All-Domain Command and Control (JADC2) operations, and will ultimately integrate into Korea's future Command and Control System (KCCS). Both bids are built on LG AI Research's Exaone foundation model. Proposal evaluation was underway with a winner expected to be selected by the end of July 2026, and the 42-month program is scheduled to run from September 2026 to February 2030.
The Defense Acquisition Program Administration completed price bidding on June 24 and will select the winner of Korea's first multipurpose unmanned ground vehicle program on July 24. Hanwha Aerospace's Arion-SMET and Hyundai Rotem's HR-Sherpa — both battery-powered 6×6 platforms with 100+ km range — are competing for the ~50 billion won initial contract. The program marks a milestone in Seoul's push to replace labor-intensive forces with AI, robotics, and autonomous systems.
Hyundai Rotem unveiled the world's first AI-based unmanned turret-type counter-drone multi-layered protection system at Eurosatory 2026 in Paris. The system uses AI-driven threat detection to assess drone type, distance, and altitude in real time, determining optimal countermeasures. The company also showcased an export-oriented K2 tank variant and the KLTV tactical vehicle, recently selected by the Polish military as a new standard platform. Kia presented next-generation medium and heavy tactical vehicles.
Hanwha Aerospace unveiled the Striker-S Medium Uncrewed Surface Vessel (MUSV) at Eurosatory 2026 on June 15. The 35-meter, 250-ton unmanned missile vessel integrates the Chunmoo rocket launcher for surface-to-surface and surface-to-ground naval strike missions using coordinated autonomous swarm tactics. The vessel features a 6-meter beam, a 20-foot container payload module rated at 10 tons, and includes counter-UAS capability for self-defense against enemy reconnaissance drones and loitering munitions.
Defense Minister Ahn Gyu-back delivered a keynote at the 23rd IISS Shangri-La Dialogue in Singapore (May 29–31), emphasizing Seoul's commitment to self-reliant defense capabilities alongside the US alliance. Ahn outlined plans for a "smart military" leveraging AI, drones, and anti-drone systems, and modernization of the three-axis defense system against North Korea's growing nuclear threats and the Pyongyang-Moscow military partnership. He also held bilateral talks with US Defense Secretary Hegseth and discussed a potential military logistics support agreement with Japan.
Internet giant Naver made an equity investment in drone swarm startup UVify, which raised $41.7M (KRW 60B) from CRIT Ventures and NXC (Nexon holding company) — the largest single drone investment in Korean history. UVify holds the global top market share in drone swarm entertainment (Guinness World Record drone shows, K-pop productions) and is expanding into defense applications. Naver's investment supports UVify's pivot into physical AI and autonomous drone technology for defense AX (AI transformation) use cases.
Hyundai Rotem secured two government-backed R&D projects for unmanned robot technologies powered by physical AI. The first, from the Ministry of Trade, Industry and Resources, develops an integrated natural-language control system for multiple robot types including the HR-Sherpa UGV and quadruped walkers, enabling swarm formations. The second, from the Agency for Defense Development (ADD), builds a digital twin simulator and modular robotic platform for virtual terrain testing with edge AI enabling independent field decisions without central server connections.
The Korea Institute for Defense Analyses (KIDA) and the National Information Society Agency (NIA) signed an MOU to deepen cooperation between the public and defense sectors on AI strategy. KIDA plans to expand its Defense AI Policy Research Office into a Defense AI Policy Center overseeing defense AI strategy, data planning, and verification. The initiative aligns with South Korea's goal of becoming one of the world's top three AI powers ("AI G3") and supports the broader Defense Innovation 4.0 program.
South Korea's Ministry of National Defense signed an MOU with SK Telecom to adopt the carrier's A.X K1 sovereign AI foundation model — Korea's first hyperscale model with 500+ billion parameters — for defense applications. Backed by 3,000 government GPUs from the national AI project, the partnership will develop defense-specific AI models and validate them using publicly available defense data. SK Telecom will provide a lightweight version optimized for processing speed. This is the first use of a national AI project model for the defense sector.
Hanwha Aerospace and Estonia's Milrem Robotics signed a teaming agreement at BSDA 2026 to jointly pursue Romania's large-scale UGV program targeting 1,000+ unmanned ground vehicles. Hanwha Aerospace Romania serves as prime contractor. A live MUM-T demonstration was conducted near Bucharest on May 12 integrating TIGON, GRUNT 6x6, and THeMIS platforms in a combined manned-unmanned teaming exercise.
U.S. AI defense firm Anduril Industries and Hyundai Rotem signed an MOU to develop an integrated manned-unmanned teaming (MUM-T) command and control system using Anduril's Lattice OS. The system will enable real-time situational awareness and autonomous mission execution across manned combat vehicles, unmanned robots, and drones operating in coordinated swarm formations. Hyundai Rotem becomes Anduril's fourth Korean private-sector partner, following HD Hyundai Group, Korean Air, and LIG Defense & Aerospace.
Korean defense startups are increasingly acting as mentors and pathfinders for the broader K-defense ecosystem's global expansion. The government's 2030 plan to nurture 100 defense startups and 30 venture firms with over 100 billion won revenue is gaining traction, with startups in AI, drones, robotics, and autonomous systems shaping dual-use innovation. Pablo Air is developing one-way attack drones after raising 11 billion won in a pre-IPO bridge round, while Nearthlab's KAiDEN anti-drone system has secured contracts with Middle Eastern and Southeast Asian countries. The K-Defense Startup Hub, designated through Creative Economy Innovation Centers, provides offline support for commercialization and technology transfer from defense research institutions.
KADEX 2026, the Korea Army International Defense Industry Exhibition, will be held October 6-10 at Gyeryongdae military headquarters in Chungcheongnam-do. Themed "Physical AI, Dominate the Battlefield," the event will feature over 450 companies across 2,032 booths — the largest scale in its history — with VIP delegations from 50 countries. Hanwha, Hyundai Rotem, KAI, LIG Nex1, and Poongsan have confirmed participation. Exhibition space is organized by battlefield function (Intelligence & C4I, Maneuver, Firepower, Protection & Anti-Drone, Space & Aerospace, Power Support) rather than by company. A dedicated "KADEX LAB Defense Startup Innovation Pavilion" will spotlight AI, robotics, and autonomous systems startups.
The Ministry of SMEs and Startups and Ministry of National Defense launched the "Everyone's Challenge Defense" (모두의 챌린지 방산) project, selecting 10 projects via top-down (military-proposed) and bottom-up (startup-proposed) approaches. Focus areas include counter-small-drone technology, AI-based aerial collision prediction, autonomous drones, cybersecurity, and semiconductors. Part of the broader plan to cultivate 100 defense startups by 2030.
LIG Nex1 and U.S. tech firm Palantir Technologies signed a memorandum of understanding on March 24, 2026, in Palo Alto to jointly develop integrated air defense and unmanned systems for the United Arab Emirates. LIG Nex1 will contribute its experience in integrated air defense and unmanned platforms, while Palantir will provide data integration and analytics software to connect sensors, platforms, and command systems.
DX KOREA 2026, to be held September 16-19 at KINTEX in Goyang, will span 104,000 sqm and feature an AI-based combat support systems pavilion with seven themed sections. The exhibition has expanded startup participation, offering up to 50% booth cost support. VIPs from approximately 50 countries will be invited, and KOTRA will facilitate overseas buyer matching for participating defense startups.
Korean drone company UVify raised $41.7M (₩60B) from CRIT Ventures and NXC (Nexon holding company), marking the largest single investment in a Korean drone firm. The company plans to deepen its entertainment drone swarm leadership while expanding into defense applications combining autonomous flight and physical AI. UVify is the only Korean company on the Dronecode Foundation board.
South Korea deployed the new unmanned K-CEV combat engineering vehicle in its first combat exercise in early 2026, demonstrating autonomous capability for mine clearance and obstacle breaching operations.
Korea's first large jet-powered stealth drone, the LOWUS (Low Observable Wingman UAV System) collaborative combat aircraft, was delivered for ground testing ahead of its maiden flight scheduled for 2026. The drone is designed to operate alongside manned fighters like the KF-21.