By Ian Werther in News — 14 Mar 2026

South Korea's Krafton, Hanwha Aerospace Form Joint Venture to Develop Physical AI

Krafton and Hanwha Aerospace announced plans to establish a joint venture to develop physical AI technology, a move that sent Krafton’s stock higher on March 13, 2026. The company was trading at 246,500 won, up 25,000 won from the previous day, a rise of about 9.07%.

The two firms said they would sign a business agreement to jointly develop physical AI technology and to launch the joint venture, pursuing technology development and commercialization across a range of sectors, including defense.

DAEJEON – About 100 members of the Humphreys Garrison traveled here to watch the Korean Professional Baseball League’s Hanwha Eagles play against the LG Twins at Daejeon Baseball Stadium, June 26.
For many attendees, the game gave them a unique cultural experience and an entertaining afternoon.
Prior to the game, the Humphreys community was invited by the Eagles to come onto the field. They played catch, threw a Frisbee around, and took pictures with the Eagles mascots and some players.
Once the game started, and people took their seats, some of the first time attendees probably did not anticipate seeing such a lively crowd. In the United States, watching a baseball game is usually a mellow experience in comparison to watching a football, basketball, or hockey game. People typically sit back and cheer when their team scores. In Korean baseball and other sporting events, however, audience participation is highly encouraged.
Korean baseball fans stand up, hit thunder clappers, and dance – even when their team does not score any runs. Some fans even waved flags and brought their own drums and noisemakers to play during the game.
The crowd is directed by a cheer instructor and cheerleaders. They entertained the crowd throughout the night by dancing and instructing fans when to clap and cheer. To say the least, the cheer instructor, cheerleaders, and audience members put on their own show.
U.S. Army photos by Jessica Ryan

For more information on U.S. Army Garrison Humphreys and living and working in Korea visit: <a href="http://humphreys.korea.army.mil" rel="nofollow">USAG-Humphreys' official web site</a> or <a href="https://www.youtube.com/usaghumphreys" rel="nofollow">check out our online videos</a>. — Representative image for context; not directly related to the specific event in this article. License: CC BY 2.0. Source: Wikimedia Commons.

In addition, Krafton joined a fund managed by Hanwha Asset Management. The fund targets investments in AI, robotics, and defense-related areas and aims to reach about USD 1 billion (roughly KRW 1.49 trillion) in size.

Krafton is best known as a major video game developer and publisher, while Hanwha Aerospace is a prominent Korean defense contractor and aerospace firm. Hanwha Asset Management operates as the asset-management arm of the Hanwha Group, a large Korean conglomerate.

For U.S. readers, the move matters because it signals growing collaboration between a leading Korean game company and a defense contractor to advance AI with possible cross-border implications for technology supply chains, defense tech innovation, and potential partnerships with global tech firms.

The joint venture will pursue technology development and commercialization in defense and other sectors, indicating Korea’s strategic focus on AI-enabled capabilities beyond consumer entertainment.

Overall, the announcement reflects broader trends in Asia-Pacific tech and defense integration, where AI and robotics are increasingly tied to industrial, security, and strategic markets that can affect multinational competitors, suppliers, and investment flows, including those in the United States.

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