K-Defense Gets an AI Boost as HD Hyundai and LIG Nex1 Join Forces with Palantir

[Korea Financial Times, Jeong Chaeyun] While the South Korean defense industry wields significant influence in the global market, its artificial intelligence (AI) ecosystem remains in a nascent stage. HD Hyundai and LIG Nex1 aim to secure a competitive edge in future advanced defense projects based on AI by partnering with Palantir, a US firm whose major clients include the US Department of Defense.

According to industry sources on the 5th, HD Hyundai is collaborating with Palantir on developing AI-powered future vessels, considered key to next-generation naval power, while LIG Nex1 is working with the firm across its weapon systems, including cyber, unmanned autonomous, and space sectors.

HD Hyundai is expanding its digital collaborations with Palantir in AI and big data across its main industries (shipbuilding, energy, and machinery), exemplified by its three shipbuilding affiliates: HD Hyundai Heavy Industries, HD Hyundai Samho, and HD Hyundai Mipo.

In March this year, Chung Ki-sun, Senior Executive Vice Chairman of HD Hyundai, met with Alex Karp, co-founder and CEO of Palantir, at Palantir's Washington D.C. office to review the AI shipyard project and discuss defense cooperation.


The AI shipyard project is an ongoing initiative between HD Hyundai and Palantir, which began in 2021. At that time, they jointly agreed to pursue the 'Future-oriented Shipyard (FOS)' project. FOS refers to an advanced, futuristic shipyard incorporating digital technologies such as virtual and augmented reality, data analytics, robotics, automation, and AI.

The first phase of the project, establishing a "Visible Shipyard," was completed in December 2023. Currently, the second phase, "Connected-Predictive Optimized Shipyard," is underway with a 2026 target, where AI learns from big data to derive optimal operating conditions for process management, including human resources and facilities.

HD Hyundai plans to establish an "Intelligent Autonomous Shipyard" by 2030. This is expected to improve shipbuilding site productivity by 30% and shorten vessel construction time by 30%.

Palantir plans to apply its 'Foundry' data platform to integrate digital twin, automation, robotics, virtual/augmented reality across all processes, from design to production.


Both companies have also been jointly developing the unmanned surface vessel (USV) Tenebris since September last year. The vessel features a high-performance hull with a light displacement of 14 tons and an overall length of 17 meters, equipped with Palantir’s advanced AI platform.

Through Palantir's AI and data analysis technology, HD Hyundai aims to maximize work efficiency and establish a data-driven work culture in the shipbuilding and defense sectors.

Palantir, through its partnership with HD Hyundai, seeks digital transformation (DX) in the shipbuilding and defense industries. By extending the application of its AI technology to various industries, Palantir anticipates establishing a globally competitive future shipyard ecosystem and strengthening its presence in South Korea.

Both HD Hyundai and Palantir commonly assess that this cooperation could lead to enhanced security capabilities for both the US and South Korea. They particularly share a consensus that AI-based defense solutions could become a critical element in future security strategies.

An industry official stated, "HD Hyundai expects to gain a competitive edge in future naval warfare and act as a game-changer by combining with Palantir's technology. If Palantir proves the performance and value of its platform in advanced industries such as smart shipyards and defense solutions through cooperation with HD Hyundai, it will create additional business opportunities domestically and internationally."

LIG Nex1, well-known as a "master of guided weapons," has also partnered with Palantir. LIG Nex1 signed a "Memorandum of Understanding for Utilizing Big Data Platforms in Future Weapon Systems" with Palantir in August last year.

LIG Nex1 plans to apply Palantir's data management platform to the development processes of reconnaissance unmanned surface vehicles, miniature Synthetic Aperture Radar (SAR) satellites, mine clearance, and electromagnetic spectrum operations (EMSO).

LIG Nex1 aims to strengthen its future battlefield research and development (R&D) capabilities by integrating Palantir's data infrastructure technology and AI solutions with its accumulated technological expertise in system integration fields, including unmanned systems (such as the Haegum series of marine unmanned platforms), space, and electronic warfare.


Choi Jong-jin, Head of Future Battlefield Business Division at LIG Nex1, emphasized, "Securing capabilities for national defense data acquisition, management, and integration is an urgent task for advancing AI algorithms in future weapon systems. We will do our best to ensure that our cooperation with Palantir leads to jointly leading solutions optimized for evolving battlefield environments."

Palantir, through its partnership with LIG Nex1, expects to enhance national defense data capabilities by applying its big data platform and AI algorithms to future weapon systems, further anticipating synergies in the advanced defense sector.

However, some voices express concerns about the potential leakage of national security information. Given that Palantir has established a global military data-centric platform through long-standing cooperation with the US Department of Defense, there are warnings that domestic defense companies must prepare for numerous data security issues directly related to national security during international cooperation.

In addition, the adoption of AI technology for military use raises legal and ethical controversies among political and civil rights circles both domestically and internationally. An industry official commented, "It will be necessary to review society's acceptance of using AI weapon systems militarily and of utilizing sensitive information, such as personal data."

Jeong Chaeyun (chaeyun@fntimes.com)