Korean Air, South Korea’s largest airline, is adding drones to its portfolio beyond passenger and cargo transport as it pushes deeper into the defense aviation market.
As of March 11, industry officials said Korean Air’s aerospace division is seeking to expand the scope of its unmanned aircraft business with U.S. defense firm Anduril. At Drone Show Korea (DSK) 2026 in Busan last month, the company showcased an AI small drone and swarm-flight drones, among other systems. The small unmanned aircraft drew interest from U.S. Forces Korea and officials from Southeast Asian and Middle Eastern countries, according to reports.
Korean Air last year began developing small unmanned aircraft for battlefield use with the Agency for Defense Development and is nearing commercialization, the officials said.
Small drones have recently reshaped battlefields in the Middle East and Europe, carrying out missions beyond reconnaissance, including precision strikes and disrupting air defenses. Bloomberg and other outlets have reported that Iran’s main loitering munition, the Shahed-136, costs about $20,000 per unit, while air-defense missiles used to shoot them down can cost billions of won.
The U.S. Department of Defense has launched a “Drone Dominance Program” to deploy large numbers of high-performance, low-cost drones. It plans to invest about $1.1 billion through next year to field more than 350,000 expendable, low-cost loitering munitions.
Korean Air is also widening its position in South Korea’s defense sector, pursuing development of a medium-altitude unmanned aerial vehicle about the size of a fighter jet and a low-observable unmanned wingman aircraft. The company completed rollout of its first prototype last year.
In military aviation, Korean Air has secured major projects. In August, the Defense Acquisition Program Administration selected the company as the preferred bidder for a 961.3 billion won ($?) performance upgrade program for 36 UH-60 Black Hawk helicopters. In December, it won a 1.8 trillion won electronic warfare aircraft (Block-I) system development project as part of a consortium with LIG Nex1. It also won an airborne early warning and control aircraft project worth 3.9 trillion won.
“To strengthen capabilities in the domestic aerospace business and build a foundation for sustainable growth, we are identifying a range of business opportunities based on the technology and experience we have accumulated,” a Korean Air official said.
* This article has been translated by AI.
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