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Team Naver and Korea Aerospace Industries (KAI) have signed a strategic memorandum of understanding (MOU) for cooperation in the aerospace and defense AI sector. Pictured at the MOU ceremony are Naver CEO Choi Soo-yeon (from left), KAI President and CEO Kim Jong-chul, and Naver Cloud CEO Kim Yu-won. / Courtesy of Naver

Naver is teaming up with Korea Aerospace Industries (KAI) to develop defense-specialized artificial intelligence (AI) models and future combat systems based on physical AI. The strategy is to leverage proprietary AI technologies alongside aerospace and defense system expertise to accelerate AI technology self-reliance in the defense sector and secure a foothold in next-generation defense platforms.

Naver announced on July 7 that the three companies—including Naver Cloud and KAI—signed a memorandum of understanding (MOU) to this effect at KAI’s headquarters in Sacheon on July 6. The ceremony was attended by key executives from the three firms, including Naver CEO Choi Soo-yeon, Naver Cloud CEO Kim Yu-won, and KAI President and CEO Kim Jong-chul.

This collaboration is significant as it brings together KAI, a leading domestic defense and aerospace corporation, and Team Naver, a top domestic AI firm, to achieve technological self-reliance in national defense and security. As advanced AI emerges as the core of future defense competitiveness, the three companies expect this partnership to serve as an opportunity to build a proprietary Sovereign AI optimized for domestic defense and security environments without relying on foreign technology, thereby minimizing security risks and achieving independent defense technology.

First, the three companies will pursue the development of a defense-specialized AI foundation model and jointly participate in government-led national R&D projects and block-funding initiatives based on this model. They also plan to establish a cooperative framework among the private sector, government, and military to pre-emptively secure core technologies for next-generation defense physical AI and connect them to subsequent commercialization.

The scope of cooperation will extend across future combat systems. The firms plan to develop unmanned aerial vehicle (UAV) platforms and AI pilots for future battlefield environments, such as the Next-Generation Aerial Combat System (NACS) currently under development by KAI, and inject AI into future aerospace platforms like the Manned-Unmanned Teaming (MUM-T) system to enhance autonomy. Furthermore, they intend to strengthen the competitiveness of the domestic AI industry by expanding the AI cooperation ecosystem with partners in the defense and aerospace sectors.

"Since technological self-reliance in the defense and security sectors is directly linked to national sovereignty, securing an independent Sovereign AI infrastructure is more important than anything else," said CEO Choi Soo-yeon. "By combining Team Naver's advanced AI capabilities with KAI's defense infrastructure, we will solidify the technological sovereignty of South Korea's national defense and security and do our utmost to create new global competitiveness for the future defense industry."

CEO Kim Jong-chul noted, "The global defense AI competition is becoming fiercer than ever, requiring joint response by combining the core capabilities of our three companies," adding, "I am confident that the union of KAI's aerospace and defense expertise with Team Naver's AI and cloud technology will enable South Korea to establish defense AI tech sovereignty and boost global competitiveness in physical AI-based UAVs and future combat systems."

                                                                                                          Kim Young-jin