KDM Weekly Brief | Issue No. 1

(Source: Hanwha Aerospace)

A Note from the Author

Welcome to the inaugural issue of KDM Weekly Brief. Each week, I distill the most relevant developments from the South Korean defense industry into actionable intelligence for investors and defense professionals. Every issue features a focused deep dive on one core theme alongside a series of curated highlights to inform your strategic positioning. KDM Weekly Brief draws primarily on open-source, Korean‑language materials, including corporate disclosures, government announcements, and specialist defense media. Questions or comments are welcome at mingi.hyun@gmail.com.

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This Week at a Glance

Hanwha Aerospace opened 2026 with a KRW 1.3 trillion (USD 888 million) deal to supply Norway with the Chunmoo multiple launch rocket system (MLRS), beating out European rivals Rheinmetall and KNDS. As part of the deal, Hanwha and Kongsberg formed a partnership that targets the global export market. Back in South Korea, local defense startups continued to attract investors. BONE became the first drone developer to secure US venture capital, while Pablo Air tied up with Korean Air’s aerospace and defense division.

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FX Note: All KRW figures in this issue are converted to USD at the February 5, 2026 mid‑market rate of KRW 1,464 per USD.

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In Focus

Chunmoo Breaks Into the High North

What Happened

Hanwha Aerospace secured a KRW 1.3 trillion (USD 888 million) contract to supply Norway with the K239 Chunmoo multiple launch rocket system (MLRS), anchoring Oslo’s NOK 19 billion (KRW 2.8 trillion / USD 1.9 billion) long‑range strike modernization program.¹ The agreement covers 16 launch vehicles, integrated logistics support, and a portfolio of precision‑guided munitions, including a long‑range missile with a range of up to 500 km.

Why It Matters

Norway’s Chunmoo selection comes in the midst of pan-European calls for a “Europe-first” approach to military procurement. While Norway did consider Rheinmetall’s GMARS and KNDS’s Euro-PULS, the South Korean MLRS was chosen for a number of reasons. While factors such as product quality, lower cost, and faster delivery timelines mattered, there were two other considerations that likely made it easier for Norwegian decision-makers to opt for a non-European option:

• European Supply Chain: The industrial architecture of the program is explicitly designed around European supply‑chain security. Missiles for Norway and other European users will be produced at Hanwha WB Advanced Systems’ facility in Poland, scheduled to begin deliveries in 2030 and positioned as the regional production hub for all European Chunmoo operators, including Poland and Estonia.² By locating high‑end munitions manufacturing in Europe, Norway reduces exposure to distant suppliers, shortens replenishment cycles, and aligns with broader European concerns about magazine depth and wartime resilience.

• Kongsberg Collaboration: Hanwha exceeded Norway’s standard 1:1 offset norm by committing cooperation equivalent to 120 percent of the contract value, centered on a strategic partnership with Kongsberg Defense & Aerospace. The cooperation encompasses integration of Kongsberg’s Integrated Combat Solution (ICS), digital vehicle platforms, and remote weapon systems into Chunmoo and other Hanwha platforms, as well as joint work on infantry fighting vehicles and localization of fire‑control systems, embedding Norwegian technology in the South Korean export portfolio and tying future value creation to Norwegian industry.³

What to Watch

Hanwha’s European customers appear to be happy with the South Korean company, as evidenced in Poland, Estonia, and Norway, all of which have either already received or have been contracted to receive both the K9 self-propelled howitzers and K239 Chunmoo MLRS.

Additional European opportunities await Chunmoo, as France, Spain, Sweden, and Greece have been evaluating various MLRS options. As was the case in Norway, Chunmoo’s foremost competitors in Europe are Lockheed and Rheinmetall’s HIMARS/GMARS and KNDS’s Euro-PULS.

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In Short

Korean Air drones on display at ADEX 2025 (Source: EBN)

• LIG Nex1 and Shield AI will integrate LIG Nex1’s L‑MDM drone‑launched land‑attack missile onto Shield AI’s V‑BAT platform under a partnership that moves beyond basic technical cooperation toward full weapons integration. Formal contracting is expected after flight and launch tests are completed.⁴

• The Defense Acquisition Program Administration (DAPA) intends to initiate a KRW 1.9 trillion (USD 1.3 billion) program in late 2026 to develop a long‑range air‑to‑air missile for the KF‑21, budgeting KRW 753.5 billion (USD 515 million) for development through 2033 and KRW 1.14 trillion (USD 779 million) for production from 2035. Hanwha Aerospace and LIG Nex1 are vying for the contract, which aims to surpass MBDA Meteor‑class performance despite expected interim reliance on foreign missiles.⁵

• Ora Global, a US venture capital firm known for early investments in Neuralink and Mistral AI, is investing several billion KRW in BONE, a South Korean startup that develops autonomous ISR and attack drones. The investment marks the fund’s first Asian commitment and will support BONE’s AI R&D and expansion into US and European markets.⁶

• Korean Air will invest KRW 5 billion (USD 3.4 million) in Pablo Air, a South Korean startup specializing in drones, to integrate swarm AI and autonomous flight algorithms into Korean Air’s mid‑ to large‑sized drones. The partnership extends to joint R&D on swarm operations, aircraft exterior‑inspection drones, and broader commercialization of Pablo’s Level‑4 swarm coordination technology.⁷ This investment follows a series of agreements Korean Air signed with Anduril in 2025.

• Woori Bank, one of South Korea’s largest financial institutions, plans to provide up to KRW 3 trillion (USD 2 billion) in credit over five years to support Hanwha’s defense and space businesses across Hanwha Aerospace, Hanwha Ocean, and Hanwha Systems, targeting infrastructure, overseas projects, and trade finance.⁸

• SK On is in discussions with an unnamed US defense contractor to supply batteries for AI‑enabled uncrewed underwater vehicles (UUV) and has been exploring battery‑supply opportunities with an unnamed European defense firm for use in eVTOL aircraft, helicopters, and cargo aircraft. SK On has been looking to the defense industry to grow its business beyond electric vehicles.⁹

• 🇰🇷 Persona AI has raised KRW 12 billion (USD 8.2 million) in a pre‑IPO round from investors including LIG Nex1 and the Defense Innovation Fund to advance its “Physical AI” technologies and global footprint ahead of a planned 2026 listing.¹⁰

• South Korea’s United Asset Management Company (UAMCO) is building an aluminum value chain for aerospace and defense use by integrating its subsidiaries, such as Almex, AST, and Aerocotech, with plans to supply launch‑vehicle and urban‑air‑mobility components in line with the South Korean government’s self-sufficiency initiative for aerospace components.¹¹

• Daesung Hi‑Tech has completed technical verification for 80 ultra‑precision defense robotics components and plans to commence full‑scale deliveries this year, indicating growing downstream demand for high‑precision mechatronics in the defense robotics supply chain.¹²

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Questions, corrections, or tips: mingi.hyun@gmail.com

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K-Defense Monitor (”KDM”) is an independent publication providing open-source intelligence analysis on South Korea’s defense industry. All content is derived from publicly available sources, including Korean- and English-language media, corporate disclosures, regulatory filings, and government announcements. Although KDM obtains information from sources believed to be reliable, it makes no representation or warranty, express or implied, as to its accuracy, completeness, or timeliness, and has no obligation to update previously published content. Readers are encouraged to consult original sources before acting on information contained in this publication. Nothing in this newsletter constitutes investment advice, a securities recommendation, or a solicitation to buy, sell, or hold any financial instrument. KDM is not a registered investment adviser, broker-dealer, or financial institution. The inclusion of contract values, financial figures, or corporate developments is for informational purposes only. Readers should consult qualified financial, legal, and tax advisors before making investment decisions. Financial figures may involve currency conversions at approximate rates stated where applicable; actual rates may differ. KDM maintains full editorial independence and has no commercial or contractual relationship with any defense company, government agency, or financial institution referenced herein. Views expressed are solely those of the author and do not represent the positions of any affiliated organization. KDM, its author, and its affiliates accept no liability for any loss or damage arising from reliance on information in this publication. All content is provided on an “as is” basis without warranties of any kind.

© 2026 K-Defense Monitor. All rights reserved. No part of this publication may be reproduced, redistributed, or forwarded — in whole or in part — without prior written consent.

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3. Defense News, "Norway picks Hanwha to supply rocket artillery in $2 billion deal," Rudy Ruitenberg, January 29, 2026. https://www.defensenews.com/global/europe/2026/01/29/norway-picks-hanwha-to-supply-rocket-artillery-in-2-billion-deal/

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5. 비즈조선, “방사청, KF-21 장거리 공대공 유도탄 올 하반기 발주…1.9조 사업,” January 22, 2026. https://biz.chosun.com/industry/company/2026/01/22/6AU6AVH7LRARZGRFV5FHTZE2UE/

6. 서울경제, “美 VC ORA GLOBAL, 韓 방산스타트업 BONE에 수십억 투자,” [date]. https://www.sedaily.com/article/20000865

7. 서울경제, “대한항공, 파블로항공에 50억 투자…군집드론 AI 기술 협력,” January 27, 2026. https://www.sedaily.com/article/20000804

8. 서울경제, “우리은행, 한화 방산·우주 사업에 3조원 금융지원,” [date]. https://www.sedaily.com/NewsView/2K7EHDS2ZD

9. Korea Herald, “SK On Eyes Defense Battery Supply for UUVs and eVTOLs,” [date]. https://www.koreaherald.com/article/10669131

10. Seoul Economic Daily (English), “Korean Startups Raise 4,359 Billion Won in January,” February 3, 2026. https://en.sedaily.com/finance/2026/02/03/korean-startups-raise-4359-billion-won-in-january-ai

11. 파이낸셜뉴스, “UAMCO, 항공·방산용 알루미늄 밸류체인 구축 가속,” January 26, 2026. https://www.fnnews.com/news/202601260858516156

12. 뉴시스, “대성하이텍, 방산 로봇 초정밀 부품 80종 기술검증 완료,” January 26, 2026. https://www.newsis.com/view/NISX20260126_0003490295