As the Ministry of National Defense moves to bring drones into service, competition among defense companies to seize the market is heating up. While large corporations such as Hanwha Aerospace and Korea Aerospace Industries (KAI) are focusing on developing large unmanned aircraft and counter-drone weapons systems, mid-sized and small companies are mainly pursuing small, expendable drones.
According to the defense industry on the 20th, the military is drawing up detailed plans for securing drone forces, one of the core projects in the recently released "defense drone and counter-drone development policy." Based on the military's combat concept, it will decide the types, performance, and scale of the drones needed. The military has said it will secure more than 20,000 drones, including short-range reconnaissance drones and small loitering munitions, by 2030.
The field expected to see the fiercest competition is small drones. More than 60 domestic drone companies, including PABLO AIR and Nearthlab, are competing.
Korea Defense Industry (KDI) is focusing on developing small drone systems. It has already developed seven types, ranging from attack and reconnaissance to micro loitering versions. For its small attack drones, it applied guidance navigation, terminal guidance, warhead, and fuze design technologies accumulated through the Chunmoo multiple launch rocket unguided rocket program.
KDI improved its fuze technology to reduce the dud rate of the unguided rockets used in Chunmoo to under 1%. A fuze is a device that ensures munitions detonate at the desired time and place.
To build a long-term mass production system, KDI also acquired a drone manufacturer and a battery company. A KDI official said, "While increasing the localization rate, we plan to integrate autonomous flight and target recognition technologies to boost drones' survivability and strike accuracy."
Poongsan also entered the drone business in 2020 and developed the multipurpose drone "MCD-7," the squad-level loitering munition (MCD-2), and a munition-drop attack drone (MCD-AM). The MCD-7 is a model that enhances flight stability over ordinary quadcopters by applying a cylindrical airframe and a coaxial contra-rotating drive system (two propellers above and below the same shaft rotating in opposite directions). Equipment can be swapped depending on the mission.
Poongsan has also developed weapons systems that integrate existing ammunition technologies, such as high-explosive bombs dedicated to drones and drop munitions.
Large platforms such as unmanned aircraft are the domain of Hanwha Aerospace and Korea Aerospace Industries (KAI), while medium platforms, counter-drone, and anti-drone systems are contested by LIG Defense&Aerospace (LIG D&A) and Hanwha Systems. These major corporations are expanding technologies gained from developing various unmanned systems into the drone field.
Since last year, Hanwha Aerospace has partnered with U.S. unmanned aircraft specialist General Atomics to develop the short takeoff and landing unmanned aircraft Gray Eagle "Mojave STOL." General Atomics is developing the airframe, while Hanwha Aerospace supplies the engine and landing gear. The Mojave STOL is large enough to carry 16 missiles, yet can take off with only about 100 meters of runway.
KAI has also begun independent development of unmanned aircraft. It is building a multipurpose unmanned aircraft (AAP) that will fly in manned-unmanned teaming formations with the Korean fighter KF-21 or the domestically produced light attack aircraft FA-50. The AAP consists of a "head" that carries mission equipment, a "body" with a computer to support AI flight, and a "tail" to which an engine is attached. Mounting a warhead as mission equipment turns it into a loitering munition, while attaching a camera or radar makes it a reconnaissance unmanned aircraft.
The counter-drone weapons systems market, where LIG D&A and Hanwha Systems are going head-to-head, is also seen as a battleground. The two companies are competing in the radar field.
LIG D&A is developing an "anti-drone" system to defend against small drones. It is a dedicated response system to stop drones that are small and fly at low altitudes. Using its AESA radar and jamming technology, it employs a soft-kill method that blocks control signal transmissions.
LIG D&A is also developing transport drones capable of carrying up to 40 kilograms and unmanned helicopters. The transport drone is being pursued as part of a dual-use civil-military technology development program by the Ministry of Trade, Industry and Resources and the Defense Acquisition Program Administration. It is also building AI-based swarm unmanned aircraft systems (UAS) with the Agency for Defense Development (ADD).
After winning the "integrated counter-drone system for critical areas" project and the "multi-layer composite protection system for drone response" project in 2023, Hanwha Systems has been developing facility-type (fixed) and mobile composite protection systems. Based on AESA radar, they are designed to identify and track illegal drones.
Drones and unmanned aircraft have gained significantly in importance since the Russia-Ukraine war broke out in 2022. The military's released defense drone and counter-drone development policy aims to advance drone technology and secure a supply chain that can stably produce and deploy drones even in wartime.
However, some in the defense industry argue that for the military's policy to strengthen drone competitiveness to succeed, it needs to set realistic targets for localization rates.
The government seeks to reduce dependence on foreign drone technology, but if it demands an excessively high localization rate, costs will rise and corporations worried about declining profitability may shy away from investment.
In fact, many defense companies are said to be procuring a substantial share of drone-related components from overseas, including China, at low prices.
The Ministry of National Defense is also reviewing localization standards for weapons systems drones in light of these factors. A Ministry of National Defense official said, "For weaponized drones, we plan to set localization standards by comprehensively considering companies' technological levels and the domestic industrial base."