Hanwha Aerospace opened the fifth K9 User Club in Tartu, Estonia on September 2, 2026, drawing about 200 military and industry representatives from seven K9 operator nations (Korea, Estonia, Poland, Norway, Finland, Romania, and Australia) plus observers from Spain and Sweden, the largest turnout to date. Hanwha presented a next-generation operating concept in which VTOL fire-guidance drones detect and track targets, generate firing coordinates for the K9, and then assess impact and battle damage, shortening the sensor-to-shooter loop and reducing reliance on exposed forward observers. The company also showed a digital logistics system cataloguing 700-800 key parts with demand forecasting, to be linked to a Polish spares warehouse. At a Chunmoo user workshop on the sidelines, Hanwha announced the first official Chunmoo User Club will be held in Korea in 2027, and Australia will host the next K9 User Club the same year. Hanwha said it will focus new K9 sales on Western European armies modernizing aging artillery, following the Spain contract that took the K9 operator base to 11 countries.
|Seoul Economic Daily / Defence Blog / Joint Forces News
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.
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.
The Defense Acquisition Program Administration approved the basic strategy for the K2 tank performance-improvement program at the 177th Defense Project Promotion Committee on August 11, 2026. The program will spend about 3.448 trillion won (~$2.4 billion) from 2028 to 2046 to fit every K2 in Republic of Korea Army service with a hard-kill active protection system, drone and improvised-explosive-device jammers, and a remote-controlled weapon station, with the first upgraded tanks entering service from 2033. DAPA framed the package as a response to lessons from the Russia-Ukraine war and North Korean drone development, shifting tank survivability from passive armor toward detecting and defeating top-attack missiles, FPV drones, and loitering munitions. The APS, jammers, and weapon stations are expected to be domestically produced, giving Korean suppliers a reference configuration that Hyundai Rotem can also offer to K2 export customers such as Poland.
South Korea and the United States announced on August 10 that they will conduct major joint military exercises from August 17 to 27, incorporating training to counter drones, GPS disruption, and cyberattacks as the allies adapt to North Korea's evolving threat profile. The drills follow the US Marines' first live-fire FPV attack-drone flights on South Korean soil, announced August 6, and come as Seoul accelerates its own counter-drone strategy and 500,000-drone-warrior program. The exercise design reflects lessons from Ukraine and the allies' shift toward integrating unmanned systems and electronic warfare resilience into combined operations on the peninsula.
DAPA Commissioner Lee Yong-chul presented the agency's second-half 2026 policy report to President Lee Jae-myung at the Blue House state guest house on August 5, alongside the Ministry of National Defense and Military Manpower Administration, under the theme of an "irreplaceable Republic of Korea." DAPA set five core tasks: securing key forces for self-reliant defense, innovating toward rapid and open acquisition of advanced capabilities, nurturing future security innovation firms, building a co-prosperous defense industrial base, and strengthening international cooperation and export support for K-defense. Concrete commitments include establishing the nuclear-powered submarine (Jangbogo-N) business plan within 2026 using the KSS-III development organization, moving unmanned systems and counter-drone system acquisition into full swing, and fielding three-axis capabilities such as the KF-21 and the long-range artillery interceptor (LAMD) on schedule.
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.
|Silicon Florist
startups Korea Investment Accelerator Oregon UAS Accelerator MOU
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.
The Defense Ministry unveiled a sweeping plan to train 500,000 "drone warriors" across all military branches so every soldier can use drones as a "second personal weapon." The strategy calls for acquiring 20,000+ low-cost reconnaissance and loitering drones by 2030, producing 110,000 drones by 2029, and accelerating deployment of the K-Lucas long-range suicide drone. Counter-drone capabilities will expand with laser weapons, high-power microwave systems, and interceptor drones. All systems will use 100% domestically produced components, avoiding Chinese parts.
KOTRA's Defense Materials Trade Support Center signed a memorandum of understanding with the Association for Uncrewed Vehicle Systems International (AUVSI) in Washington, D.C. to support Korean drone companies' entry into the U.S. market. The partnership aims to facilitate market access, industry networking, and regulatory navigation for K-drone manufacturers targeting the rapidly growing US unmanned systems sector.
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.
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.
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.
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.
DAPA launched a 17 billion won ($11.27M) project to develop drones that physically collide with enemy suicide drones using infrared search-and-track for detection and a hard-kill method for interception. If the first interceptor misses, a follow-up drone engages. The 2-year R&D program is under the Defense Rapid Acquisition Technology Research Institute.
South Korea's Ministry of National Defense and the U.S. Department of Defense signed a letter of intent on drone and counter-drone cooperation, establishing a joint supply chain and shared standards for allied drone systems. The agreement covers reconnaissance drones, FPV strike systems, loitering munitions, and counter-UAS weapons. The two sides will pursue a common standard for small drone batteries and register Korean products on a U.S. drone and counter-drone online trading platform to be unveiled by year-end.
Hyundai Rotem participated in BSDA 2026, Eastern Europe's largest defense exhibition held May 13-15 in Bucharest, Romania, under the theme "Romania's Ready Partner." The company showcased the K2 tank alongside advanced unmanned systems including the HR-Sherpa multipurpose unmanned ground vehicle, an unmanned firefighting robot, and a multi-legged walking robot. Romania is a key K-defense market with ongoing K9 local production and K2 MBT negotiations.
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.
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.
Korean Air unveiled South Korea's first strategic-class medium-altitude reconnaissance drone (KUS-FS) at its Busan facility. The MALE UAV measures 13m long with a 26m wingspan, powered by a 1,200hp turboprop engine. Equipped with radar, electro-optical, and infrared sensors for 100km+ reconnaissance range. Five ROKAF pilots are training to operate the system, with service entry targeted for September 2026.
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.
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.
Honeywell Aerospace and LIG Nex1 established a framework agreement to explore collaboration on unmanned aerial vehicle and defense technologies. The partnership aims to combine Honeywell's propulsion, navigation, and sensor expertise with LIG Nex1's guided munitions and defense systems capabilities for next-generation autonomous platforms.
U.S. autonomous systems maker Shield AI announced that its V-BAT vertical takeoff drone will be armed with LIG Nex1's guided missile system, following a contract commemoration event held at UMEX 2026 in Abu Dhabi. The integration pairs Shield AI's autonomous VTOL capability with LIG Nex1's precision strike munitions, marking a significant cross-border defense technology partnership.
South Korea's military announced plans to develop 500,000 war drones as part of its three-axis defense system and future warfare capability enhancement. The program reflects lessons learned from the Ukraine conflict and growing drone warfare threat.
Korean Air rolled out the first KUS-FS medium-altitude reconnaissance UAV, with an initial contract for 12 aircraft and potential fleet expansion to 100. Service entry is targeted for September 2026, marking Korea's push into indigenous military drone platforms.