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South Korea’s Naver, KAI to develop defense AI platform

Naver CEO Choi Soo-yeon, Korea Aerospace Industries CEO Kim Jong-chul and Naver Cloud CEO Kim Yoo-won attend a signing ceremony for an aerospace and defense AI partnership in Sacheon, South Korea. Photo courtesy of Naver

July 7 (Asia Today) — South Korea’s Naver is teaming with Korea Aerospace Industries to develop artificial intelligence models tailored for defense and future combat systems based on physical AI.

Naver said Tuesday that Naver, Naver Cloud and Korea Aerospace Industries signed a memorandum of understanding Monday at the aircraft maker’s headquarters in Sacheon, South Korea.

Naver CEO Choi Soo-yeon, Naver Cloud CEO Kim Yoo-won and Korea Aerospace Industries CEO Kim Jong-chul attended the signing ceremony.

The agreement brings together one of South Korea’s leading artificial intelligence companies and one of its main aerospace and defense companies as Seoul seeks greater technological self-reliance in national security.

The three companies said advanced AI has become a key factor in future defense competition. They plan to develop sovereign AI optimized for South Korea’s defense and security environment, reducing reliance on foreign technology and lowering security risks.

Sovereign AI generally refers to artificial intelligence systems developed and operated domestically to reflect a country’s language, data, laws and security requirements.

The companies will first work on a defense-specific AI foundation model. They also plan to jointly participate in government-led research and development projects and block-funding programs.

The partnership is expected to create a cooperation framework among industry, government and the military, linking core physical AI technologies for next-generation defense systems with future commercialization.

The scope of cooperation will extend across future combat systems. Korea Aerospace Industries plans to apply AI to unmanned aircraft platforms and AI pilot development for future battlefield environments, including its next-generation air combat system.

The companies also plan to raise the level of autonomy in future aerospace platforms, including manned-unmanned teaming systems.

Naver and Korea Aerospace Industries said they will also expand an AI cooperation ecosystem with defense and aviation suppliers to strengthen South Korea’s domestic AI industry.

“Technological self-reliance in national defense and security is directly connected to national sovereignty, making it essential to secure independent sovereign AI infrastructure,” Choi said. “By combining Team Naver’s advanced AI capabilities with Korea Aerospace Industries’ defense infrastructure, we will do our best to strengthen South Korea’s defense technology sovereignty and create new global competitiveness for the future defense industry.”

Kim said global competition in defense AI is intensifying.

“The three companies need to respond jointly by combining their core capabilities,” Kim said. “By bringing together Korea Aerospace Industries’ aerospace and defense expertise with Team Naver’s AI and cloud technology, South Korea can establish defense AI technology sovereignty and improve global competitiveness in unmanned aircraft and future combat systems based on physical AI.”

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260707010002305

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Hanwha Aerospace to buy $340M more in KAI shares

International military delegates chat with exhibitors next to a FA-50 multirole fighter jet model developed by Korea Aerospace Industries (KAI) at the Defense and Security 2025 exhibition in Nonthaburi, on the outskirts of Bangkok, Thailand. File. Photo by RUNGROJ YONGRIT / EPA

May 4 (Asia Today) — Hanwha Aerospace will acquire additional shares in Korea Aerospace Industries to strengthen cooperation in aviation, space and defense.

Hanwha Aerospace said in a regulatory filing Monday it decided to purchase about 2.96 million additional KAI shares on the open market. The acquisition is valued at up to 500 billion won ($340 million), equivalent to about 2.98% of the company’s equity capital.

The transaction will expand Hanwha Aerospace’s existing stake. The company currently holds about 3.31 million KAI shares. After the additional purchase is completed, its total holdings will rise to about 6.27 million shares, increasing its stake to 6.43%.

The purchase will be made in cash through open-market transactions from this month through December. The final acquisition size may vary depending on market conditions, including share prices.

Hanwha Aerospace said the purpose of the acquisition is to strengthen business cooperation. Industry observers view the move as a strategic step to deepen ties between the two companies in the aerospace and defense sectors.

KAI is South Korea’s leading aerospace company, producing aircraft, satellites and aerospace equipment. It reported 3.7 trillion won ($2.51 billion) in revenue and 187.3 billion won ($127 million) in net income last year.

The investment is expected to help Hanwha Aerospace seek stronger synergies between its businesses in space launch vehicles, aircraft engines and defense systems and KAI’s aircraft and space platform capabilities.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260504010000433

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