Hanwha Pushes Defense AI as It Plans $2.2 Billion US Munitions Investment

Hanwha Group is accelerating its defense technology strategy around artificial intelligence while expanding its manufacturing presence in the United States, linking a push for more integrated weapons systems with a major new investment in ammunition production.

Chairman Kim Seung-youn called for stronger defense AI capabilities during a visit Tuesday to Hanwha Systems' plant in Gumi, North Gyeongsang Province. The facility produces and tests radar, electro-optical equipment and naval combat systems, making it a central site in the conglomerate's effort to connect platforms across land, sea, air and space.

Kim inspected the assembly and testing of the multifunction radar used in the Cheongung-II medium-range surface-to-air missile system. The radar is designed to detect and track aircraft and missiles, identify targets and guide interceptors. The system has been exported to the United Arab Emirates, Saudi Arabia and Iraq.

He also reviewed an AI-based integrated air defense system under development. The project combines radar and electro-optical sensors with anti-aircraft guns and guided weapons to support faster responses to multiple threats. Hanwha Systems is separately developing AI-enabled naval combat systems, automated engagement technology and autonomous navigation.

Kim described Hanwha Systems as the brain and neural network of the group's defense business because its command, control and sensor technologies connect products made by affiliates including Hanwha Aerospace and Hanwha Ocean. He also emphasized workplace safety for employees and subcontractors.

The Gumi plant was expanded last year through an investment of about 280 billion won, or approximately $206.6 million. The enlarged site covers 89,000 square meters and supports radar antenna testing for systems including Cheongung-II and South Korea's KF-21 fighter jet.

In the United States, Hanwha Defense USA plans to invest $2.2 billion over seven years in an advanced munitions manufacturing campus at Pine Bluff Arsenal, a US Army installation in Arkansas. The project is expected to create nearly 400 jobs and broaden domestic American production capacity.

The company opened an administrative headquarters at the arsenal to oversee local operations and prepare for the manufacturing campus. The planned facility will produce 155-millimeter propellant charges and base bleed units, components intended to improve artillery performance and range.

Hanwha said the Arkansas project would reinforce the US munitions industrial base. The investment also gives the Korean conglomerate a larger foothold in the American defense market as governments increase demand for ammunition, radar and networked battlefield systems. Support from US Army and Arkansas officials adds institutional backing to a project that combines industrial capacity, local employment and national-security priorities.