KRAFTON and Hanwha Aerospace Partner to Advance Physical AI and Defense Technology Innovation

KRAFTON has entered into a strategic partnership with Hanwha Aerospace to jointly develop and commercialize physical AI technologies, marking a significant step beyond gaming into industrial and defense applications.

Focus on Physical AI Development and Joint Venture Plans

The collaboration is formalized through a Memorandum of Understanding (MOU), with both companies planning to co-develop core physical AI technologies and explore real-world applications across sectors such as robotics and defense. The partnership combines KRAFTON’s expertise in AI, software development, and simulation environments with Hanwha’s strong industrial and manufacturing capabilities.

As part of the long-term strategy, the two companies aim to establish a joint venture that will help transition research outcomes into commercial solutions. This initiative is expected to accelerate innovation and create scalable applications for physical AI in real-world environments.

In addition to the joint development efforts, KRAFTON plans to invest in an AI-focused fund managed by Hanwha Asset Management, targeting a total size of $1 billion. The fund will focus on emerging opportunities in AI, robotics, and defense technologies, helping expand the broader ecosystem and identify high-growth partners.

KRAFTON’s growing focus on AI is further supported by its robotics research initiatives, including its U.S.-based entity Ludo Robotics. By leveraging its experience in virtual simulations and large-scale data processing, the company aims to bridge the gap between digital environments and real-world AI applications.

This alliance signals KRAFTON’s broader ambition to diversify beyond gaming and position itself as a key player in next-generation technology and defense innovation.