Hanwha to invest 55 trillion won in space, defense AI through 2040

Hanwha Group plans to invest a total of 55 trillion won ($35.4 billion) in the aerospace and AI industries through 2040, the conglomerate announced Thursday. The group said it will build a space and aerospace industrial ecosystem centered on the Yeongnam region, contributing to balanced regional development across the country.

Kim Dong-kwan, vice chairman of Hanwha Group, unveiled the mid- to long-term strategy for an AI space power at the Yeongnam Advanced Industry Development Vision Forum held at Gyeongsang National University's indoor gymnasium in Jinju, South Gyeongsang Province.

"The three goals Hanwha has in mind are securing space sovereignty, building AI capabilities for national defense, and completing South Korea's space and aerospace ecosystem centered on the Yeongnam region," Kim said at the forum.

To secure space sovereignty, Hanwha plans to build an integrated space infrastructure based on its own launch vehicles and satellite technology. The system is designed so that information gathered from space is analyzed by AI and fed into the South Korean military's decision-making and operational execution. Hanwha Aerospace will invest 23 trillion won and Hanwha Systems 20 trillion won in building the space infrastructure.

The integrated space infrastructure Hanwha is pursuing consists of an observation satellite constellation collecting information from ground and maritime sources at an altitude of 350 kilometers, a space AI data center to be established 400 kilometers above Earth, and a low-orbit satellite communications network positioned at 900 kilometers that transmits imagery and other data in real time.

Hanwha Systems plans to launch and operate 64 synthetic aperture radar (SAR) satellites by 2031 to ensure continuous real-time detection. The company also plans to build a space AI data center to accumulate and analyze information gathered by the observation satellites.

A low-orbit communications network will handle the seamless transmission of collected data to both the space data center and ground stations. Hanwha Systems will begin service with 192 satellites and plans to launch more than 60 additional satellites to extend satellite lifespans and expand coverage over the Arctic region. The satellites making up the integrated space infrastructure will be carried into orbit aboard launch vehicles manufactured by Hanwha Aerospace.

"The first step toward securing space sovereignty is developing our own launch vehicle," Kim said. "Through that development, Hanwha will ensure South Korea has the capability to reach space at any time." Kim added that as the future battlefield shifts toward space, achieving genuine defense autonomy will be impossible without fixing the country's dependence on foreign players in the space industry.

"Hanwha will lead the way in expanding South Korea's AI territory into space, drawing on our world-class solar power technology and space capabilities," Kim said.

Hanwha Aerospace and Hanwha Systems will build a defense AI data center in Changwon, South Gyeongsang Province, capable of integrating and utilizing diverse information collected from space, ground, maritime and aerial domains. With an investment of more than 10 trillion won, the group aims to complete an integrated system in which satellites collect information, AI analyzes it, and aircraft and unmanned vehicles act on it — connecting land, sea and air forces into a single network.

Announcing the defense AI data center construction plan, Kim said South Korea can leap forward from being a country strong only in hardware to one that possesses the world's finest defense AI.

The defense AI data center will start this year at a capacity of 45 megawatts and expand in stages to 130 megawatts by 2032. It will be built as a closed, high-security facility that can be independently managed without relying on outside parties.

Hanwha will also develop a combat-specialized defense AI model called Defense OS. With approximately 2 trillion won in development costs to be invested through 2040, Defense OS will provide services tailored to the operational environment of the Korean Peninsula. Through the system, weapons platforms ranging from K9 self-propelled howitzers to unmanned surface vessels, submarines, autonomous drones and unmanned aerial vehicles will evolve into intelligent weapons systems capable of independent judgment and response. Manned-unmanned teaming (MUM-T) and counter-drone systems (C-UAS) will be added to further multiply combat power.

"Our manned-unmanned teaming system will not only guarantee defense autonomy but will serve as a solid foundation for South Korea to further cement its status as a world-class defense powerhouse," Kim said.

Hanwha plans to use its 55 trillion won investment to complete South Korea's space and aerospace industrial ecosystem across three pillars: nurturing regional talent, strengthening the technological competitiveness of partner companies, and fostering the co-growth of startups and research institutions.

To develop regional talent, Hanwha is already working with local universities including Pusan National University, Changwon National University and Gyeongsang National University on joint industry-academia projects, scholarship programs and continuing education for current employees. The group plans to deepen those ties by establishing contract departments at the undergraduate level and operating contract-quota graduate programs.

Hanwha also plans to actively pursue co-prosperity programs with regional partner companies. It will use policy financing and other tools to provide low-interest facility loans to partners and help upgrade their production capabilities through automation and remote management, while strengthening safety practices.

"The virtuous cycle in which regional talent learns in the region, regional companies challenge global markets, and regional ecosystems underwrite the future of South Korea — that is what Hanwha considers a completed industrial ecosystem," Kim said.