By Ian Werther in News — 14 Mar 2026

Korea's Hanwha and Krafton to form joint venture for AI-powered unmanned systems

South Korea’s Hanwha Aerospace announced a collaboration with Krafton, the game developer behind PUBG, to develop AI that is trained in virtual environments and applied to real unmanned systems and robotics. The companies said the partnership is aimed at turning simulated learning into operational technology.

The effort centers on a concept called “physical AI,” which uses AI trained in virtual simulations to control or assist real unmanned platforms. By combining Krafton’s AI research and software development capabilities with Hanwha’s defense manufacturing and unmanned-system know-how, the partners plan to advance this approach.

The two firms disclosed a memorandum of understanding signed on the 13th and said they intend to establish a joint venture. The collaboration will fuse Hanwha’s defense-infrastructure and hardware expertise with Krafton’s data science, AI research, and software skills to pursue core technology development and practical applications.

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.

Their roadmap includes core AI technology research, validation and demonstration in controlled environments, exploration of deployment scenarios, and building the requisite technical and operational frameworks. The plan calls for a phased expansion as feasibility and readiness are demonstrated.

Hanwha Aerospace said the project will advance the field readiness of the technologies, with staged field tests to verify real-world applicability. Krafton, meanwhile, will support AI learning and verification by leveraging its experience managing data and virtual-world simulations.

The collaboration also involves investment. The companies will participate in a $1 billion fund created by Hanwha Asset Management, aimed at AI, robotics, and defense-focused investments, with the two firms targeting collaboration across these sectors.

Why this matters beyond Korea: the deal exemplifies a growing cross-industry approach to accelerating autonomous, AI-enabled defense and industrial systems by translating gaming-era simulation data into real-world capability. For the United States, it underscores ongoing Korea-U.S. alignment on advanced AI, robotics, and defense tech, with potential implications for supply chains, partnerships with U.S. firms, and the global market for dual-use technologies.

Krafton’s involvement leverages its expertise in data management and virtual-world simulations, while Hanwha Aerospace brings practical experience in defense manufacturing and unmanned platforms. Taken together, the arrangement signals Korea’s push to become a hub for autonomous technologies that could feed into international markets and collaborative defense programs.

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