Krafton and Hanwha Aerospace to Jointly Develop Physical AI

by Kong Byeongseon

Published 13 Mar.2026 09:48(KST)

MOU Signed for Establishment of Joint Venture

Krafton and Hanwha Aerospace are joining forces for strategic collaboration in the field of physical AI.

Krafton (left) and Hanwha Group logos. Provided by Krafton

On March 13, Krafton and Hanwha Aerospace announced that they have signed a memorandum of understanding (MOU) for the joint development of physical AI technology and the establishment of a joint venture. This collaboration will leverage Krafton’s AI research capabilities and software development expertise, combined with Hanwha Group’s industrial infrastructure in the defense and manufacturing sectors.

The two companies plan to sequentially advance several initiatives: joint research and development of core physical AI technologies, review of demonstration and application scenarios, and establishment of both technology and operational systems. In addition, they aim to establish a joint venture to quickly translate their joint development achievements into field applications and commercialization, while also strengthening a long-term cooperative framework.

Through this MOU, the strengths of both companies are expected to be applied to the field of physical AI. Krafton will utilize its experience in data management accumulated through the gaming industry and its virtual environment-based simulation technology for the training and validation of physical AI. Hanwha Aerospace will enhance the completeness of physical AI technology operating in real-world environments based on its weapons systems expertise and verify its field applicability through step-by-step demonstrations.

The two companies will also participate as investors in a fund established by Hanwha Asset Management. This fund will focus investments on AI, robotics, and defense industries, aiming to expand the physical AI ecosystem and strengthen technological competitiveness. Additionally, leveraging the fund, they plan to identify high-potential partners across the entire core value chain and connect them to joint development and commercialization opportunities. The target fundraising amount is 1 billion dollars (about 1 trillion won).

Changhan Kim, CEO of Krafton, stated, “We will accelerate the development of technologies that work in real-world environments by combining Krafton's AI technology and software operation capabilities with Hanwha's field-based capabilities,” adding, “In the future, by establishing a joint venture with Hanwha, we aim to grow into a global defense technology company like Anduril.” Jaeil Son, CEO of Hanwha Aerospace, said, “Through our collaboration with Krafton, we will set new standards for technological paradigms in the fields of physical AI and future defense.”