South Korea's government plans to establish a 50 billion won venture fund for startups developing security-critical technologies, including AI, semiconductors, space, and defense applications, Seoul Economic Daily reported on September 5, 2026. The Ministry of SMEs and Startups and the Defense Acquisition Program Administration will each contribute 25 billion won, with the fund to grow beyond 200 billion won by 2030. Modeled on In-Q-Tel, the CIA's venture arm, the new institution will sit under Korea Venture Investment Corp. and invest roughly 2-3 billion won per company in early-stage firms with strong technology but unproven commercialization, prioritizing strategic value over financial return. Launch is targeted for mid-2027 at the earliest, pending National Assembly passage of a special act this year. The plan follows the February 2026 MSS-DAPA pledge to nurture 100 defense-participating startups and 30 "defense venture 100-billion-won companies" by 2030.
Airvility, the Seoul-based developer of the AB-U60 drone-carrier and hard-kill interceptor drones, closed a 6.5 billion won Series A on September 1, 2026 led by Silicon Valley venture firm Sage Partners, with Stonebridge Ventures returning and IBK Industrial Bank joining as a new shareholder. Cumulative funding now stands at 10.5 billion won. The proceeds will fund completion of its interceptor line — net-gun, direct-strike, and launcher-type aircraft — targeted for the first half of 2027. The company says it is in supply talks with nine countries across the Middle East, Southeast Asia, and Latin America and is targeting 50 billion won in cumulative revenue by 2028.
EGCED Tech, operator of the D4D (Deploy for Defense) platform, announced on August 28, 2026 a partnership with Korea Investment Accelerator to run a roughly three-month Oregon Defense Tech Base Camp for Korean startups in unmanned aircraft, autonomous systems, and robotics. Participants gain access to overseas flight-test environments through the Oregon UAS Accelerator, local industry partners, and university and defense-ecosystem networks in the state. The program directly addresses the regulatory and airspace constraints that limit drone and robotics testing inside Korea and builds on the Oregon MOU signed in Seoul in July after the D4D Hackathon.
Counter-drone and attack-drone maker Nearthlab listed on KOSDAQ on August 24, 2026 after pricing its IPO at the top of the range at 41,200 won per share, with institutional demand of 743.5 to 1. The offering raised roughly 37.5 billion won at an implied market capitalization of about 238 billion won. First-half 2026 revenue reached 17.4 billion won, seven times the prior year, and the company posted its first-ever quarterly operating profit in the second quarter. Defense accounted for 86% of first-half revenue, driven by a roughly 14.9 billion won Middle East shipment of the Jaiden (XAiDEN) swarm kamikaze drone, described as Korea's largest single drone export to date. It is the first defense-sector drone company to go public in South Korea.
Satellite-imagery AI company SIA and Myongji University opened a Defense AI Center on the university's Natural Sciences Campus on August 21, 2026, an industry-academia platform that pairs university research space with SIA's equipment to field-test and validate defense AI, geospatial intelligence, ISR, and unmanned-systems technologies. Founding participant startups include Nearthlab, Seadronix, Pablo Air, Alice Group, Pebblous, and NSM. The center is framed explicitly as a demonstration ecosystem to help defense startups validate products faster, addressing the shortage of realistic test environments that Korean defense-tech founders routinely cite.
The Korea Defense Industry Support Center (KDSEC) and venture capital firm Lean Ventures signed a two-year MOU on August 21, 2026 to build a roughly 30 billion won defense fund targeting companies in precision manufacturing, aerospace, drones and unmanned systems, AI, sensors, communications, and semiconductors with defense applicability. KDSEC will source and vet candidates while Lean Ventures handles investment review and valuation. The fund is aimed at defense parts and materials firms that have technology but limited access to investors, connecting early-stage backing to follow-on rounds — part of a broader push, alongside the new Korea Defense Investment Agency, to channel private capital into the defense supply chain.
Korea Investment Accelerator, part of the Korea Investment & Securities group, signed a memorandum of understanding with the Oregon UAS Accelerator in Pendleton, Oregon, opening a pathway for its portfolio companies to run real-world U.S. demonstration projects and pursue U.S. non-dilutive funding such as SBIR and STTR grants. CEO Baek Yeo-hyun framed the tie-up as a route for K-defense and drone startups to break into the U.S. defense and public-sector market. The partnership extends the U.S.-entry momentum from the D4D hackathon's Oregon links earlier in July.
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startups Korea Investment Accelerator Oregon UAS Accelerator MOU
Korea's Ministry of SMEs and Startups opened the second round of its "Everyone's Challenge – Defense" open-innovation program, recruiting about 50 startups to team with military and defense demand companies, with applications running July 16 to August 4. Each selected project receives up to 100 million won for technology validation and prototyping, with follow-on support of up to 200 million won in startup-growth R&D and up to 600 million won in public-private commercialization funding. The first round in March backed 10 companies; the program is part of Korea's plan to grow 100 defense startups by 2030.
D4D (Deploy for Defense), Asia-Pacific's first civilian-led defense builder hackathon organized by EGCED Tech, concluded in Seoul with 500+ attendees over three days — 200+ builders and officials in total, including 142 builders from 7 countries who formed 54 teams and shipped 47 solutions in 24 hours, with 92% of participants coming from outside the traditional defense sector. Entries were scored on field applicability, problem-solving fit, technical implementation, and scalability. Eight teams were recognized as winners across five tracks: Team BONE — BONE AI with its subsidiary D-Makers — (Autonomy, Unmanned & Counter-UAS) for an AI-based interceptor drone platform combining rapid-acceleration control, precision hovering, vision-based autonomy, and LiDAR obstacle recognition, demonstrated across manual, automatic, and swarm interception scenarios; DoS·ANGAE (OSINT & Defense Intelligence) for dark-web threat analysis and deception intelligence; DELPHI (Battlefield Networks & C2) for multi-domain command and control; SEASIDE (Maritime Domain Awareness) for dark-vessel and subsea-cable threat detection; and Nyx (Combat Readiness & Training) for AI-based combat-readiness training. Teams Supporty and Kestrel were additionally selected for a U.S.-entry track linked to the Oregon UAS Accelerator. Partners spanned Palantir, StealthMole, BONE AI, F4GE, Morph Systems, Prairie Schooner, the Oregon UAS Accelerator, and EDTH, with KDReview as data partner. Organizers took the initiative from idea to event to a U.S.-entry pathway in 49 days, with an Oregon MOU (Business Oregon, Dept. of Aviation, Oregon UAS Accelerator) marking the next step under a "Start from Seoul, Go Global with Oregon" strategy to build a defense-AI ecosystem in APAC. D4D reached its APAC footing through partnership with EDTH (European Defense Tech Hub), Europe's largest defense-tech builder community, and organizers state the next goal is a leading Asia-Pacific platform where defense startups, technology, and data converge — connecting builders, the military, and investors in the manner of Ukraine's BRAVE1.
Hanwha Aerospace and Korea Aerospace Industries (KAI) formalized a comprehensive partnership to advance Korea's defense and aerospace businesses across four pillars: joint development and export promotion of unmanned aircraft, development and joint marketing of aircraft integrating domestically produced engines and radars, joint entry into the global commercial space market, and cultivation of the defense/aerospace industrial ecosystem and regional supply chains. The two companies pledged to jointly discover and nurture SMEs and startups in the Gyeongnam cluster (Changwon, Geoje, Sacheon), providing annual technology support worth 300 billion won through joint R&D organizations. Industry watchers framed the tie-up — backed by Hanwha's roughly 2.5 trillion won investment in KAI shares — as assembling an air-land-sea integrated defense powerhouse aimed at the global export market, with a KF-21 export package seen as an early priority.
Asia-Pacific's first civilian-led defense hackathon, D4D (Deploy for Defense), opened its Day 0 Defense Builders Night on July 3 in Yangjae, Seoul. StealthMole — the Korean-founded dark web intelligence firm — opened the event with a talk on real-world defense applications of OSINT and cyber threat intelligence. Track partners BONE AI, F4GE, EGCED Tech, Morph Systems, and Prairie Schooner are presenting problem statements across Autonomy & Counter-UAS, OSINT & Defense Intelligence, and Maritime Domain Awareness. The Oregon UAS Accelerator joined as an ecosystem partner, bridging its 34-company unmanned systems cohort with the Korean defense startup scene. The 24-hour hackathon begins July 4 with a focus on building tools with actual defense application — not demos, but deployable capabilities.
EGCED Tech announced D4D (Deploy for Defense), Asia-Pacific's first civilian-led defense builder hackathon, scheduled for July 3–5, 2026 in Seoul. The 24-hour event features a 15M KRW prize pool across tracks covering Autonomy & Counter-UAS, OSINT & Defense Intelligence, and Maritime Domain Awareness. Partners include BONE AI, StealthMole, F4GE, Morph Systems, and Prairie Schooner, with KDReview serving as data partner. The event aims to bring the hackathon-to-deployment culture — proven in US and European defense tech ecosystems — to Asia-Pacific.
Counter-drone startup Nearthlab signed a business cooperation MOU with LIG Defense & Aerospace on June 2, 2026 to jointly develop and market interceptor drone capabilities for the global integrated air defense market. The agreement pairs Nearthlab's AI software and autonomous-flight interceptor drone technology with LIG D&A's integrated air defense system portfolio. Under the framework the two plan to develop large-scale drone hard-kill proximity defense systems, build derivative interceptor drones sized against large drone threats, and expand cooperation across domestic and export markets for large-drone interception. The tie-up connects one of Korea's most prominent defense startups to a top-tier systems integrator and aligns with DAPA's hard-kill interceptor drone R&D push and the military's broader counter-drone programmes.
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.
Korean defense startup Airvility, dubbed "Korea's Anduril," is developing the AB-U60 VTOL fixed-wing UAV (3m wingspan, 60kg MTOW) that carries four interceptor drones with a 30km range for counter-drone operations. Founded in 2023 by alumni from ADD, Hyundai Motor, and LG Electronics, the company targets 10 billion won revenue for 2026 with mass production planned for late 2026. PoC operations are scheduled for H2 2026 with the Korean military, Abu Dhabi, and Thai SOEs.
The Korea Startup Forum (KOSPO) officially launched its Defense Industry Council with 18 member companies including DeepMaze AI, Machina Rocks, Morph Systems, BoneAI, Saltlux, Elice Group, Space Rotech, Seedronics, and Twelve Labs. The council will focus on regulatory reform, defense procurement innovation, attracting defense-specialized investment, global market entry facilitation, and proof-of-concept opportunities for startups in the defense sector.
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.
South Korea announced plans to establish a Defense Innovation Investment Agency (KDIA) modeled on the U.S. In-Q-Tel to systematically foster defense startups. The cross-ministry initiative — spanning MND, DAPA, and the Ministry of SMEs — aims to replicate the growth trajectory of Palantir and Anduril, which benefited from early government venture capital. The agency will manage dedicated defense venture funds and provide procurement pipeline access to qualifying startups, supporting Korea's target of nurturing 100 defense startups and 30 billion-won-revenue ventures by 2030.
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.
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.
Counter-drone startup Nearthlab signed a $10M export contract with a Middle Eastern country for its "Kaiden" autonomous interceptor drone, and secured a separate export deal with a Southeast Asian nation. The company is planning the first defense-sector drone IPO in South Korea, and signed an MOU with Malaysia's AIROD for MRO cooperation.
Drone swarm startup Pablo Air raised KRW 11 billion (~$8M) in new investment, bringing cumulative funding to KRW 107.5 billion. The company merged with 40-year defense manufacturer VOLK to enable mass production of 30,000+ one-way attack drones per year, and unveiled the S20s precision strike drone with 110km range and 5kg payload.
The South Korean government unveiled its "Defense Startup Nurturing Plan," targeting 100 defense startups and 30 defense venture companies (each with over KRW 100 billion in revenue) by 2030. Six government agencies signed a coordinated support MOU, and DX KOREA 2026 doubled its startup pavilion to 40 booths.