Hanwha Aerospace is expanding into the unmanned aerial vehicle (UAV) systems business, which is seen as a potential game changer on future battlefields. The company plans to actively invest in next-generation defense technologies as competition heats up to develop AI-powered drones.
Hanwha Aerospace announced on April 2 a partnership with U.S. drone manufacturer General Atomics Aeronautical Systems (GA-ASI) to jointly develop the Grey Eagle (GE)-STOL, a short take-off and landing drone.
UAVs are primarily used for military purposes such as surveillance, reconnaissance, and strike missions. They are larger than civilian drones seen in everyday settings and capable of carrying over one ton of equipment or weaponry.
GA-ASI designs and manufactures UAVs, such as the MQ-1 Predator and MQ-9 Reaper, and radar systems for the U.S. military and NATO countries, such as the UK, Japan, and Australia.
Through this partnership, Hanwha and GA-ASI will collaborate across the full UAV development cycle—from planning and design to system integration, production, operation, and sales. Last August, Hanwha Group Vice Chairman and Hanwha Aerospace CEO Kim Dong-kwan met with GA-ASI leadership in San Diego to discuss a potential collaboration.
The GE-STOL two companies plan to develop will have a short take-off and landing distance of just a few hundred meters, making it suitable for restricted environments such as short airstrips, flight decks on large vessels, and unpaved fields. The new drone will be able to carry payloads of up to 1.6 tons, allowing for a wide range of missions, including reconnaissance and combat.
The two companies aim to begin flight tests in 2027 and pursue business opportunities in the U.S., Middle East, Asia, and Europe. Hanwha Aerospace expects to invest over 750 billion won ($510 million) to build the drone systems, engines, and necessary facilities. The company plans to allocate 300 billion won from the proceeds from its upcoming equity offering to its UAV-related business.
Based on demand projections by GA-ASI, more than 600 GE-STOL units could be sold over the next decade, equivalent to 15 trillion won in exports, including direct sales.
“Securing drone capabilities is essential for the future of Korea’s self-defense and strengthening the Korean defense sector,” said Kim Dong-kwan.
