[E-Daily Reporter Shin Yeong-bin ] Naver (NAVER(035420)) and Naver Cloud are joining forces with KOREA AEROSPACE INDUSTRIES (KAI) to develop AI models specialized for the defense sector. The plan is to develop proprietary AI models optimized for the defense and aerospace sectors and to expand their collaboration to include a future combat system platform based on physical AI.

Team Naver and KAI announced on the 7th that they had signed a strategic memorandum of understanding (MOU) for “cooperation in the aerospace and defense AI sectors” at KAI’s headquarters in Sacheon, South Gyeongsang Province, on the 6th. Key executives from the three companies—including Naver CEO Choi Soo-yeon, Naver Cloud CEO Kim Yu-won, and KAI President and CEO Kim Jong-chul—attended the signing ceremony.

Under this agreement, Naver, Naver Cloud, and KAI will jointly develop an AI foundation model optimized for the defense sector. The goal is to combine Team Naver’s proprietary AI technology with KAI’s capabilities in aerospace and defense system integration to implement “sovereign AI” tailored to South Korea’s defense and security environment.

In practice, Naver Cloud will play a central role in the collaboration. Naver Cloud will lead overall operations—including AI model development, cloud infrastructure, and responses to defense sector projects—while Naver plans to collaborate when group-level AI technical support is required.

The three companies will first focus on developing a “defense-specialized AI foundation model.” Subsequently, they plan to jointly participate in government-led national R&D projects and block funding initiatives to secure core technologies for next-generation defense physical AI and establish a foundation for public-private-military cooperation that can lead to follow-up commercialization.

Specific projects or application areas have not yet been finalized; the plan is to define the scope of cooperation through joint participation in future government defense-related projects.

Naver has recently identified defense AI as a strategic business area and is strengthening its response. Last month, Naver Cloud established a dedicated Defense AX organization reporting directly to CEO Kim Yu-won and is currently advancing defense projects through a project-based structure that brings together personnel from planning, sales, technical support, and development. The company plans to combine its proprietary AI models with cloud, GPU, and data center infrastructure to address the demand for sovereign AI in the defense sector.

In particular, collaboration linked to the Next-Generation Air Combat System (NACS), currently under development by KAI, is anticipated. NACS is a system designed for future battlefield environments where manned and unmanned combat aircraft and satellites are hyper-connected. Both sides believe this collaboration will contribute to accelerating the development of physical AI, such as unmanned aircraft platforms and AI pilots.

They are also pursuing plans to embed AI into future aerospace platforms, such as Manned-Unmanned Teaming (MUM-T) systems. Through this, they aim to enhance the level of autonomy in aerospace platforms and expand AI collaboration frameworks with partners in the defense and aviation sectors.

Choi Soo-yeon, CEO of Naver, stated, “Since technological self-reliance in the defense and security sectors is directly linked to national sovereignty, securing an independent sovereign AI infrastructure is of the utmost importance.” She added, “We will do our utmost to combine Team Naver’s advanced AI capabilities with KAI’s defense infrastructure to solidify South Korea’s technological sovereignty in defense and security and create new global competitiveness for the future defense industry.”

Kim Jong-chul, President and CEO of KAI, remarked, “As global competition in defense AI is fiercer than ever, a joint response combining the core capabilities of the three companies is necessary.” He continued, “I am confident that the convergence of KAI’s aviation and defense expertise with Team Naver’s AI and cloud technology will enable South Korea to establish technological sovereignty in defense AI and enhance its global competitiveness in the fields of physical AI-based unmanned aerial vehicles and future combat systems.”