State & Local News
Krafton and Hanwha Aerospace Launch Korea Physical AI JV
March 13, 2026
Krafton and Hanwha Aerospace have established a joint venture in South Korea to develop and commercialize physical AI technologies, aiming to create a domestic counterpart to the U.S. defense AI firm Anduril. Supported by a $1 billion fund managed by Hanwha Asset Management, this collaboration combines Krafton's AI software expertise with Hanwha's defense manufacturing capabilities to accelerate innovation in AI, robotics, and defense sectors.
- This joint venture signals growing investment and strategic focus on physical AI and defense technology development within South Korea, presenting new opportunities for suppliers and contractors in AI-enabled defense systems.
- Procurement professionals should note the integration of software and hardware capabilities as a key trend in defense acquisitions, emphasizing partnerships that bridge AI innovation with manufacturing expertise.
- The $1 billion fund backing this initiative indicates significant capital availability for related technology development, suggesting potential subcontracting and collaboration opportunities for companies specializing in AI, robotics, and defense technologies.
- Organizations engaged in defense technology procurement in the Asia-Pacific region may find this development relevant for competitive analysis and partnership considerations.
We will accelerate the development of technologies that operate in real-world environments by combining Krafton's AI technological prowess and software operations capabilities with Hanwha's field-based strengths.
— Kim Chang-han, CEO of Krafton
Through cooperation with Krafton, we will set a new technology paradigm standard in physical AI and the future defense sector.
— Son Jae-il, CEO of Hanwha Aerospace
Vendors
Krafton, Hanwha Aerospace, Hanwha Asset Management