[Militech] Defense SMEs at the Core of "K-Defense"

Kyeongin Tech Challenges Large Enterprises with Proprietary RCWS Development

Samhyun Targets the Global Unmanned Vehicle Market with Multipurpose Unmanned Vehicles

President Lee Jaemyung stated at the ADEX 2025 Defense Industry Development Forum held in October last year at KINTEX in Ilsan, Goyang City, Gyeonggi Province, "I hope that defense R&D will serve as a major catalyst leading the private sector's advanced technology industry." This reflected his intention to create a virtuous cycle structure: increasing defense spending → promoting defense R&D → advancing high technology → driving economic growth. President Lee also said, "I have instructed relevant ministries to establish measures to support domestic semiconductors, materials, components, and equipment through the introduction of an incentive system," with direct mention of small and medium-sized defense companies. According to data from the Defense Acquisition Program Administration, defense industry R&D investment in 2024 amounts to KRW 1.7166 trillion for large companies and KRW 103.2 billion for small and medium-sized companies. Large companies' R&D investment jumped 6.4 times from KRW 269 billion in 2019 to KRW 1.7166 trillion. In contrast, R&D investment by small and medium-sized enterprises increased only 3.8 times from KRW 27.3 billion in 2019 to KRW 103.2 billion in 2024 over the same five-year period. This demonstrates just how harsh the reality is for small and medium-sized defense firms. Despite this climate, there are defense SMEs that are taking on challenges by focusing on research and development for niche markets. To meet these companies, I visited Changwon, Gyeongsangnam-do.

Gyeongin Tech also signed a Memorandum of Understanding (MOU) for business development in 2021 with Indonesia's PT Pindad. Photo by Gyeongin Tech

The key component when launching precision-guided weapons is the actuator, which controls the movement of the launcher and the direction of the missile. Only a handful of small and medium-sized defense companies possess actuator technology. Kyeongin Tech, founded in 1990, is a prime example. The company manufactures actuators for control fins and rocket launchers. Kyeongin Tech possesses more than 30 types of technologies and products. Major defense companies such as LIG Nex1 and Hanwha also use actuators produced by Kyeongin Tech. Based on its accumulated technology, Kyeongin Tech is currently conducting R&D on various types of actuators for guided weapons.

Challenging the Large Enterprise RCWS Market with Proprietary Development

Kyeongin Tech has also taken on the challenge of developing a new weapon system: the Remote Controlled Weapon Station (RCWS). RCWS is a weapon that allows the operator to monitor the battlefield via an indoor monitor and fire remotely. RCWS systems have already been developed by domestic SMEs and achieved export results as early as ten years ago. In 2010, a border surveillance system valued at 3 million dollars was exported to the United Arab Emirates. However, those SMEs disappeared from the market as they failed to overcome management difficulties. In the meantime, large companies also entered RCWS development.

Defense Companies Re-arming with Artificial Intelligence

Hyundai WIA showcased its RCWS, which can be mounted on various tactical vehicles, at last year's ADEX defense exhibition. Hyundai WIA displayed a small RCWS equipped with a 7.62mm machine gun for easy operation by medium and small units, as well as an AI-based intelligent RCWS designed to accommodate 12.7mm and 40mm machine guns. The AI-based RCWS features an automatic tracking algorithm that enhances firing accuracy. Hanwha Aerospace's remote controlled weapon station is another representative weapon system that applies unmanned technology. It is equipped with day and night detection and tracking, as well as remote firing capabilities. Hanwha's defense affiliates have also incorporated Fourth Industrial Revolution technologies, such as digital cockpits with advanced avionics, smart unit management systems utilizing IoT and AI, and cyber situational awareness systems.

An Indonesian light tank equipped with RCWS using 7.62mm and 12.7mm is expected to achieve exports exceeding 50 billion won this year alone. Photo by Kyungin Tech

Kyeongin Tech has now entered this market as well. Since 2021, the company has been developing its own RCWS, aiming to move beyond sales revenue from supplying parts to large companies and establish itself as an independent exporter. The process was not without difficulties. No one was willing to provide RCWS technology. Kyeongin Tech's engineers attended seminars and academic conferences to collect information. Where information was lacking, they turned to foreign books and academic papers to fill the gaps.

Overcoming Development Challenges and Partnering with Indonesia for Exports

The main challenge was the lack of testing sites and equipment. Neither domestic companies nor the military offered support. By chance, a connection was made with Indonesia's PT Pindad. The Indonesian government provided a firing test range in the Bandung region, as well as firearms and ammunition. After observing the testing process, Indonesia reached out first, and in 2021, a memorandum of understanding (MOU) was signed for business development. Indonesia requested RCWS systems to be mounted on armored vehicles and light tanks, specifically 240 sets of RCWS using 7.62mm and 12.7mm. The company expects exports to exceed KRW 50 billion as early as the end of this year.

Kyeongin Tech is also preparing for another venture: unmanned submersibles that can be used not only for military but also for civilian purposes. The development of a multi-jointed underwater walking robot (CRABSTER), capable of operating in both fast-moving shallow waters and the deep sea, is now at the practical application stage. It is capable of performing challenging underwater tasks such as obstacle detection and mine clearance.

CEO Choi Chul stated, "Our actuators can already be supplied at prices more than 30% lower than those overseas, and I want to contribute to K-defense through new business initiatives. The strength of SMEs lies in niche markets, and as long as they possess technological capabilities, there is no problem."

There is also another defense SME that has independently developed unmanned weapon systems: Samhyun, located in Changwon. The company's main products are automotive electronic components, joint motors for intelligent robots, and actuator systems. Samhyun specializes in manufacturing motors, controllers, and reducers, as well as integrated 3-in-1 modular products. As a partner of Hyundai Motor Group, its ultimate customers are Hyundai and Kia. Having entered the defense market, Samhyun was also listed on KOSDAQ in March 2024.

Horizontal Stabilizer Integrating Motors, Controllers, and Reducers

Last year, the company signed a second supply contract for electric horizontal stabilizers, a core component required for the UAE export of the "Cheongung-II" (Medium-range Surface-to-Air Missile, MSAM). Cheongung-II is a South Korean medium-range surface-to-air missile system manufactured by companies including LIG Nex1, Hanwha Systems, and Hanwha Aerospace. The electric horizontal stabilizer developed by Samhyun incorporates 3-in-1 technology, enabling various weapon systems such as missile launchers, radars, and artillery systems to maintain automatic horizontal alignment in any environment. This is regarded as a testament to Samhyun's global competitiveness in the defense market. Additionally, the company produces electro-optical tracking systems (EOTS) used in laser anti-aircraft weapon systems and target acquisition and designation systems (TADS) that control and exchange thermal energy.

The multipurpose unmanned vehicle 'HOPLON,' developed by Samhyun, is a strategic product that captures the accelerating shift toward unmanned systems in the global defense market triggered by the Russia-Ukraine war. Photo by Samhyun

In addition to supplying defense system companies, Samhyun plans to double its 2024 sales compared to 2023 (KRW 64.9 billion) through the independent development of defense weapon systems. The development of the multipurpose unmanned vehicle "HOPLON" is one such example. This is a strategic product that has identified the acceleration of the "unmanned transition" in the global defense market since the onset of the Russia-Ukraine war.

Now Taking on Unmanned Vehicles with Proprietary Core Technology

"HOPLON" utilizes Samhyun's core 3-in-1 powertrain (EPT) technology. According to the company, its swappable battery design maximizes operational sustainability and tactical flexibility on the battlefield. "HOPLON" is a universal platform that can be adapted for various customer applications, including reconnaissance, transport, combat support, surveillance, security, disaster response, and autonomous transport. Beyond the battlefield, it is recognized as a competitive dual-use unmanned platform with potential for civilian applications. The company is pursuing business models including exports of "HOPLON" to the Middle East, Northern Europe, and Southeast Asia, as well as business-to-government (B2G) cooperation with government agencies such as the Ministry of National Defense and the National Police Agency.

According to market research firm MarketsandMarkets, the global unmanned systems market is expected to grow from approximately 27.1 billion dollars in 2024 to over 43.5 billion dollars by 2030. This structural expansion is attributed to surging demand for AI-based battlefield automation, communications-driven operations, and autonomous platforms. Park Giwon, CEO of Samhyun, stated, "'HOPLON' is an unmanned universal platform that leads unmanned, electrified, and intelligent systems for establishing manned-unmanned combined combat systems, a key sub-task of Defense Innovation 4.0's AI-based advanced military power initiative. We expect that it will help nurture 'AI-powered elite forces capable of winning on tomorrow's battlefield' and contribute to minimizing troop casualties through safe operations in the future combat environment of our military."

This content was produced with the assistance of AI translation services.