"Drones are evolving beyond a simple technology theme into a national strategic industry. For drone startups to develop with speed, a 'dual-use' strategy combining civilian and military applications is now essential."
Kim Young-jun, Chairman of Pablo Air, made these remarks at the Seoul Economic Daily Invest Forum on Wednesday, stating that "drone-based operations are influencing battlefield dominance, making drones indispensable in geopolitical conflicts."
Founded in 2018, Pablo Air is an aviation and defense platform company based on swarm artificial intelligence technology. The company has established itself as a leading Korean drone startup by building ultra-precision mass production systems based on its core technologies of swarm coordination and integrated control. Since its founding, Pablo Air has raised a cumulative 107.5 billion won in investment and achieved consolidated revenue exceeding 10.8 billion won last year. Major strategic investors include Korean Air and LX International, with Korea Development Bank and LIG Nex1 also participating.
Chairman Kim noted that since the Russia-Ukraine war broke out in 2022, the primary use case for drones has rapidly shifted toward defense. "The global military drone market will grow from $24.3 billion last year to $51.5 billion by 2032, representing an average annual growth rate of 11.3%," he explained. "Given complex geopolitical issues, drone companies' entry into the defense sector has become crucial for business survival."
As military applications for drones continue to increase, a dual-use strategy has become essential for corporate survival. Dual-use refers to operating both defense and civilian businesses simultaneously, with the core concept being to supplement the limitations of defense procurement structures with civilian revenue. "Entering the defense sector is inevitable for responding to regulatory risks in the civilian sector and for technology demonstration purposes," Kim said, adding that "civilian revenue is necessary to endure defense procurement cycles that can take up to three years."
Kim believes the dual-use strategy is also effective for enhancing corporate value. Anduril, Shield AI in the United States, and Helsing in Germany are representative examples of companies that started drone businesses in the civilian sector before expanding into defense. Anduril has received 17 trillion won in investment and is predicted to exceed a corporate valuation of $60 billion (approximately 88 trillion won). Shield AI and Helsing are also cited with valuations of $12.7 billion (approximately 18 trillion won) and $13 billion (approximately 19 trillion won), respectively. "All these companies entered the defense industry through dual-use strategies," Kim emphasized. "They achieved high valuations by evolving into 'platform' companies equipped with AI, autonomy, integrated control, and production systems, rather than simple drone manufacturers."
Pablo Air also plans to increase its influence in the defense sector based on swarm technology in line with these trends. The company is particularly focused on research and development enabling individual drones to communicate with each other and perform the same objectives. "Including Pablo Air, there are only three companies in the world with Level 4 swarm technology," Kim said. "Beyond defense, we will steadily expand into civilian sectors such as aircraft exterior inspection and drone shows to practice dual-use."
