Hanwha to Invest 55 Trillion Won in AI and Space Industry by 2040

by Lee nakyeong Posted : July 3, 2026, 15:32Updated : July 3, 2026, 15:32
Kim Dong-kwan, Vice Chairman of Hanwha Group, attends the 2025 Economic New Year meeting at the Korea Chamber of Commerce and Industry in Seoul on January 3, 2025. Photo by Yoo Dae-gil, dbeorlf123@ajunews.com
Kim Dong-kwan, Vice Chairman of Hanwha Group [Photo=Ajou Economics DB]
Hanwha plans to invest a total of 55 trillion won in the aerospace and AI industries by 2040 to establish South Korea as a leader in artificial intelligence and space technology. The investment aims to foster a balanced regional development centered around the Yeongnam area.
On July 3, Kim Dong-kwan, Vice Chairman of Hanwha, unveiled this long-term strategy for becoming an AI space power during the Yeongnam Advanced Industry Development Vision report held at the indoor gymnasium of Gyeongsang National University in Jinju, South Gyeongsang Province.
To build integrated space infrastructure, Hanwha Aerospace will invest approximately 23 trillion won in space launch vehicles. This investment will focus on establishing assembly facilities and testing grounds for launch vehicle development, with plans to transition to commercial launches to secure independent space transportation capabilities.
Hanwha Systems plans to allocate about 20 trillion won for the acquisition of low Earth orbit synthetic aperture radar (SAR) satellites, an AI data center in space, and satellite communication networks.
The integrated space infrastructure being developed by Hanwha will consist of an observation satellite constellation that collects information from the ground and sea at an altitude of 350 kilometers, a space AI data center to be established at 400 kilometers, and a low Earth orbit satellite communication network positioned at 900 kilometers to transmit various data in real-time.
Hanwha Systems will also build a space AI data center to accumulate and analyze information collected by the observation satellites. In the long term, the center plans to enhance computing power by incorporating new high-efficiency solar panels.
Kim emphasized that "the first step to securing space sovereignty is the development of independent launch vehicles," stating that Hanwha aims to ensure South Korea has the capability to reach space at any time through its own launch vehicle development.
As the future battlefield shifts to space, Kim believes that without an independent space industry, which currently relies on foreign satellite manufacturing and launches, it will be impossible to secure space sovereignty and achieve self-defense.
He pledged that Hanwha would lead the expansion of South Korea's AI territory into space, leveraging the nation's top-tier solar power technology and space capabilities.
Hanwha Aerospace and Hanwha Systems will also establish a defense AI data center in Changwon, investing over 10 trillion won to create an integrated system where satellites collect information, AI analyzes it, and aircraft and drones utilize the data, connecting land, sea, and air forces.
The defense AI data center in Changwon will start with a capacity of 45 megawatts this year and will gradually expand to 135 megawatts by 2032, with plans to secure power in conjunction with Hanwha Energy's generation assets.
Additionally, Hanwha will develop a specialized defense AI model called Defense OS, investing about 2 trillion won by 2040. This model will provide services tailored to the operational environment of the Korean Peninsula, enabling intelligent weapon systems, from K9 self-propelled howitzers to unmanned surface vessels, submarines, and drones, to make autonomous decisions and respond effectively.
Hanwha anticipates that this investment will significantly contribute to the development of the aerospace industry ecosystem centered in the Yeongnam region, promoting balanced regional growth.
Kim stated, "The virtuous cycle of local talent learning in their region, local companies challenging the global market, and the regional ecosystem securing South Korea's future is the completion of the industrial ecosystem that Hanwha envisions."



* This article has been translated by AI.