Korea Unveils ‘K-Palantir’ Strategy to Nurture Security Innovation Companies Worth $666 Million by 2030

Korea is ramping up its efforts to build a homegrown defense and security technology ecosystem, with ambitious plans to develop five trillion-won companies in emerging security fields by the end of the decade.

The Ministry of SMEs and Startups (MSS), the Ministry of National Defense, and the Korea AeroSpace Administration (KASA) jointly presented their strategy for nurturing future security innovation companies at a meeting held at Cheong Wa Dae on Friday. Around 60 participants including government officials, SMEs, mid-sized enterprises, and private sector experts attended the session.

Building Korea’s Security Tech Champions

The government’s plan centers on creating a self-reinforcing ecosystem where stronger security capabilities and industrial growth feed into one another. By 2030, Korea aims to develop five companies valued at KRW 1 trillion (approximately $666 million) or more in emerging security fields, along with 50 innovative companies each generating revenue exceeding KRW 100 billion ($66 million).

The initiative spans six strategic areas: drones and robotics, defense AI and semiconductors, defense sensors and future materials, space and aerospace, and cybersecurity and quantum communications. Companies demonstrating strong innovation and growth potential will be designated as candidate or innovation companies and developed into world-leading security players.

Faster Procurement and Expanded R&D

A key element of the strategy involves dramatically shortening the traditional weapons procurement timeline. For advanced technology equipment such as AI systems, the government will expand open-call acquisition and shift toward early adoption models where the military improves performance over time rather than waiting for complete systems.

The government will also introduce a security-dedicated R&D model linking research, demonstration, and procurement—providing large-scale support of up to KRW 10 billion per company over five years. Companies will be able to build demonstration data by joining the military in operations and training.

Korean In-Q-Tel and Trillion-Won Investment Pool

Drawing on the U.S. In-Q-Tel model—the CIA-backed venture capital firm that helped launch Palantir—the government will establish a Korean equivalent to invest directly in emerging security fields. Growth capital will be provided through Fund of Funds and defense funds worth over KRW 1 trillion.

The government also plans to support the establishment of Korea Strategic Technology Partners, a technology-focused asset manager, and build an investment pool targeting up to KRW 10 trillion over five years to invest in innovative companies at scale.

Military Takes Lead in Technology Demonstration

The Ministry of National Defense will expand dedicated demonstration units to nine by 2026 and establish innovation labs in each—field-based teams that design, test, and modify drones. Through the 2026 Korea Drone Battle and the opening of military training grounds, the ministry will widen opportunities to demonstrate and certify drone and counter-drone technologies.

The ministry will provide metadata on military data through a Defense Data Catalog and steadily expand releasable defense data to support AI development. Defense AX (AI transformation) hubs will be established to help private companies’ advanced AI reach the military quickly.

To achieve sovereign defense AI, the ministry will develop a military AI operating system tailored to the Korean armed forces (K-Maven), defense-specific AI models, and a defense world model. Korea also plans to introduce a long-range loitering munition (K-LUCAS) and secure 60,000 commercial training drones to train 500,000 drone operators.

Aerospace as Security Pillar

KASA outlined plans to create a virtuous cycle where aerospace innovation creates new industries that strengthen security capabilities. Key initiatives include developing core technologies for a space data center as part of the K-Moonshot project, building a national platform that opens satellite imagery to the private sector, and developing AI drones and electric vertical take-off and landing aircraft.

Officials from the three ministries said they would move quickly to advance these policies. They noted that as the security industry shifts from hardware toward software and AI, the door will open wider for young startups to enter the market as key players.