[E-Daily Reporter Kim Hyung-il ] “The most distinctive feature of defense technology is verifying and rapidly acquiring artificial intelligence (AI) and technical capabilities. It is crucial to accumulate technology and experience through actual business operations and, based on that, expand the reach of our technology to more customers. Our goal is to develop technologies that meet the needs of domestic and international customers and establish them as global standards.”

Choi Jae-hyuk, CEO of #NearsLab, met with E-Daily on the 16th and explained the unique characteristics of defense technology in this way. He also emphasized a strategy of first commercializing technology, validating it through actual business operations, and then expanding it to new customers and markets. He explained that while the traditional defense industry develops and deploys weapons according to the government’s long-term procurement plans, in the defense drone sector, the process of rapidly transforming rapidly evolving technology into products and validating them in real operational environments is crucial.

Starting with drones for inspecting wind turbines, Nears Lab is expanding its defense business based on autonomous flight technology. Revenue for the first half of this year totaled 17.4 billion won, of which the defense sector—including KAiDEN and XAiDEN—accounted for 14.9 billion won. The defense sector’s share of total revenue stood at 85.6%, a significant increase from 11.6% in the first half of last year.

KAiDEN is an anti-drone system that receives threat information from external detection systems, such as radar, automatically deploys, and then identifies, tracks, and intercepts targets using vision AI. XAiDEN is a swarm drone system in which a single operator controls a fleet of 10 drones, consisting of one Commander drone and nine Striker drones. The Commander handles reconnaissance, target detection, and mission assignment, while the Strikers autonomously track and strike assigned targets.

Nearslab’s defense technology is grounded in the autonomous flight experience it has accumulated through its wind turbine inspection business. Nearslab has inspected more than 100,000 wind turbine blades in over 40 countries, accumulating flight data across diverse environments. Wind turbines are often installed in high-altitude areas or at sea where strong winds blow, resulting in unstable GPS and communication conditions. CEO Choi stated, “Our experience flying with precision in various environments is a major asset,” adding, “We can apply what we’ve learned from the wind power sector to the defense industry.”

CEO Choi is particularly focused on establishing a cost-effective system to counter drone threats. “It’s not sustainable from a cost perspective to use missiles worth billions of won to take down drones costing millions or tens of millions of won,” he said. “We need to respond with means that are less expensive than the attacking drones themselves.” Nearslab plans to address this cost issue through Kaiden.

Integrating the product into actual weapons systems is also a key challenge. CEO Choi explained, “Only after it is incorporated into a weapons system can additional quantities required for training, stockpiling, and actual operations be generated,” adding, “This differs from a structure where a single delivery marks the end of the process.” He noted that in the domestic defense sector, once a product is integrated into a weapons system, sustained procurement over periods of 10 to 15 years is possible.

The company is also validating its products through actual defense projects in South Korea. Last June, Nearslab formed a consortium with LIG Nex1 Co., Ltd.(079550)and was selected as the final contractor for the Defense Acquisition Program Administration’s “Anti-Drone Hard-Kill Close-In Protection System” rapid demonstration project. The company is currently in the process of validating the system in the domestic operational environment.

Overseas, the company is conducting business primarily in Singapore and the UAE, gaining experience in real-world applications. CEO Choi referred to flagship customers as “Hero Customers.” “A ‘hero customer’ is not simply a customer that generates a lot of revenue, but one that serves as a benchmark that other customers in the industry can trust,” he explained. The company’s strategy is to replicate in the defense sector the approach it took in the wind power business, where it secured Siemens as a key partner and subsequently expanded its business to surrounding customers. The company is also gaining experience in integrating its systems with local radar, communications equipment, and command-and-control systems to tailor them to the specific environments and customer requirements of each country.

Within the domestic defense sector, the company is also focusing on securing a stable supply chain for components. CEO Choi explained, “We are developing products for the South Korean military using domestically produced components to ensure there are no supply chain issues.” Nearslab is building development capabilities not only in AI but also in core drone components such as motors, flight control systems, and electronic equipment.

Following the IPO, the company plans to prove its corporate value through actual business performance. CEO Choi stated, “Ultimately, corporate value stems from securing actual customers and generating revenue,” adding, “It is important to continuously expand our business and diversify our revenue streams.” The company plans to use the proceeds from the public offering to enhance technological capabilities and quality, secure new customers, and gradually expand production capacity in line with actual demand.

In closing, CEO Choi remarked, “It is important not to limit Nearslab’s technology to a single product but to expand its reach to various fields and customers,” adding, “We will grow into a company that not only creates the technology actual customers need and leads specific sectors but also establishes global standards.”