Krafton and Hanwha Aerospace said Friday they have signed a memorandum of understanding to jointly develop physical artificial intelligence technology and establish a joint venture aimed at commercializing the technology.
Krafton, the South Korean game developer best known for the global hit video game PUBG: Battlegrounds, is expanding its focus beyond gaming into AI and robotics. Hanwha Aerospace, the defense and aerospace arm of Hanwha Group, develops military systems including aircraft engines, space technology and precision-guided weapons.
The partnership will combine Krafton’s software and AI capabilities — built through its experience handling large-scale game data — with Hanwha’s industrial infrastructure and expertise in defense manufacturing.
The companies said the alliance will focus on three areas: Joint research and development of core physical AI technologies, validation of real-world deployment scenarios and applications, and the establishment of technical and operational systems.
As part of the partnership, Krafton plans to launch a joint venture with Hanwha Aerospace to accelerate commercialization and deepen long-term collaboration.
Krafton will also invest in a $1 billion fund established by Hanwha Asset Management targeting companies in artificial intelligence, robotics and defense technologies. The investment aims to strengthen the partners’ technology capabilities while identifying high-growth companies across the sector’s value chain.
“Krafton will accelerate technology development by combining our expertise in AI and software with Hanwha’s industrial strengths,” Krafton CEO Kim Chang-han said. He added that the joint venture could evolve into a global defense technology company similar to Anduril Industries, the US defense technology startup.
Hanwha Aerospace CEO Son Jae-il said physical AI is emerging as a major frontier in defense technology.
“Our partnership with Krafton will present new paradigms for physical AI and future defense,” he said.
Krafton is continuing its research in physical AI through Ludo Robotics, a newly established research entity, as well as its Korean subsidiary dedicated to robotics development.
stlee0329@heraldcorp.com
