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# Krafton to invest $1 billion into South Korea defense company

**[Game Developer](https://daily.dev/sources/gamedeveloper)** · 2 min read · 0 upvotes · 0 comments

## Summary

PUBG and Subnautica publisher Krafton has signed a Memorandum of Understanding with South Korean defense and aerospace company Hanwha Aerospace, committing to invest approximately $1 billion into a fund focused on AI, robotics, and defense. The partnership aims to develop and commercialize physical AI technology across defense sectors. Krafton plans to leverage its game data and physics-based virtual world expertise to train and verify physical AI software, and will establish a joint venture with Hanwha for commercialization. Hanwha, which develops defense systems including precision-guided munitions and has MRO contracts with the U.S. Navy, was compared by Krafton to U.S. military contractor Anduril.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://www.gamedeveloper.com/business/krafton-to-invest-1-billion-into-south-korea-defense-company-partnered-with-the-u-s-navy>

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