Naver has made an equity investment in drone development startup UVify. The move is seen as Naver's selection of UVify as a new business partner following its declared entry into the defense artificial intelligence transformation (AX) sector.
Naver announced Wednesday that it had made the investment in UVify alongside signing a strategic partnership. The two companies plan to discuss future cooperation across business areas to maximize mutual synergies from a long-term perspective.
The scope of collaboration between the two companies reportedly spans both civilian and defense businesses. According to industry sources, Naver and UVify recently began discussions premised on defense-related business collaboration. The two companies have reportedly exchanged a partnership concept under which Naver would develop an integrated information and operations system for military operations and public security, with UVify's drone airframes controlled through that system.
Defense AX is one of Naver's newly identified growth engines. Naver plans to establish a dedicated defense AX organization within its subsidiary Naver Cloud later this month. The new organization will be led directly by Naver Cloud CEO Kim Yu-yeon. This marks the first time Naver has formed an organization solely dedicated to defense AI business. ★See this newspaper's June 1 edition, pages 1 and 3.
Following the example of U.S. startup Palantir, a leader in defense AX, Naver is expected to develop AI-powered battlefield intelligence analysis and combat decision-support systems. However, Naver also needs various equipment to demonstrate the smooth operation of its defense AI systems. The company must secure hardware to serve as the hands and feet of its defense AI, and UVify is understood to have been chosen as its drone supplier.
UVify, founded in 2014, is a drone developer. The company began making its name by capturing the No. 1 share of the global drone light show market. UVify is regarded as one of the few domestic drone companies capable of stable airframe production with consistent quality control. Last year alone, it exported 10,000 drones to 14 countries, recording more than 10 billion won in overseas sales. Naver is also said to have moved early to secure UVify, which has a clear track record in civilian-sector business among numerous domestic drone firms, as its top-priority partner and is reviewing various collaboration plans.
Beyond defense, the two companies are also reportedly discussing multiple collaboration plans in civilian areas including drone light shows, UVify's flagship business. However, both companies' position is that no concrete cooperation plan has yet been finalized. "We expect that combining Naver's physical AI technology capabilities with UVify's drone technology will create new possibilities across various industrial sectors," Naver CEO Choi Soo-yeon said.
