Hanwha Aerospace, Krafton Join Forces to Develop Physical AI

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Cross-Industry AI Alliance: Hanwha Aerospace (012450) and Krafton (259960) have signed a business agreement for joint development of physical AI—artificial intelligence that operates in physical environments such as robots and autonomous machines—and are establishing a joint venture. Krafton will participate as an investor in an AI, robotics, and defense fund being formed by Hanwha Asset Management, with a target size of $1 billion (approximately 1.492 trillion won).

Mobility's AI Transformation: Kakao Mobility CEO Ryu Geung-sun officially declared the company's vision to become a "physical AI-based future mobility company" through a CEO letter to all employees. The company plans to leverage mobility data, road network information, and operational standardization capabilities accumulated during the digital transformation of the mobility industry as core competitive advantages for physical AI, while pursuing technology internalization.

China's AI Rise Amid Sanctions: Chinese AI chip designer Cambricon recorded its first annual profit in nine years of operation last year, with revenue surging 453%. The growth accelerated as U.S. semiconductor export restrictions aligned with the Chinese government's policy to expand domestic AI chip usage. The company is expected to continue benefiting as Nvidia has temporarily halted production of chips for the Chinese market.

1. Kim Dong-kwan and Chang Byung-gyu Pour in 1.5 Trillion Won, Opening New Chapter in Cross-Industry Collaboration

Hanwha Aerospace and Krafton have signed a business agreement for joint physical AI technology development and joint venture establishment. The plan combines Hanwha Aerospace's defense and manufacturing infrastructure with virtual environment simulation technology Krafton accumulated through game development including PUBG: Battlegrounds, enabling rapid learning and verification of physical AI. Krafton will also participate as an investor in an AI, robotics, and defense fund being formed by Hanwha Asset Management, targeting $1 billion (approximately 1.492 trillion won). Long-term plans include expanding cooperation to the space and aviation sectors while jointly discovering promising companies.

2. Kakao Mobility CEO Ryu Geung-sun: "Leaping Forward as a Physical AI Leader"

Kakao Mobility CEO Ryu Geung-sun has officially declared the company's vision to become a "physical AI-based future mobility company." He defined four core assets unique to Kakao Mobility: mobility data refined to AI-trainable levels, map and road network data reflecting real-time road changes, operational standardization capabilities, and hub and operational infrastructure. The company will pursue simultaneous advancement of existing services and future technologies while internalizing technology spanning from software to hardware control. "We will secure unrivaled technological sovereignty optimized for our environment, rather than depending solely on external sources for core capabilities and leadership," Ryu emphasized.

3. Cambricon Turns U.S. Sanctions into Growth Fuel, Posts First Profit in 9 Years

Chinese AI chip designer Cambricon recorded annual revenue of 6.497 billion yuan (approximately 1.408 trillion won) last year, surging 453% year-over-year and achieving its first annual profit in nine years. After facing a crisis from heavy dependence on Huawei sales in its early days, the company diversified into cloud and automotive semiconductors. Growth accelerated as U.S. semiconductor export restrictions blocked Nvidia's supply to the Chinese market, aligning with Beijing's policy to expand domestic AI chip usage. The company plans to triple shipments this year compared to last year, though low yields at Chinese foundry SMIC and unstable high-bandwidth memory procurement remain production bottlenecks.

4. "Undermining Corporate Competitiveness"—Europe Follows U.S. in Slowing ESG Disclosure

The European Union officially published the "Omnibus Directive" in its Official Journal on the 26th of last month, significantly relaxing the Corporate Sustainability Reporting Directive (CSRD). The directive exempts companies with 1,000 or fewer employees from disclosure requirements and delays the disclosure deadline for unlisted large EU companies from 2026 to 2028. The European Commission estimates approximately 80% of companies previously subject to CSRD will be excluded. Following the Trump administration's effective nullification of climate disclosure regulations, Switzerland and Singapore have also postponed ESG disclosure schedules. In the United States, California's "Climate-Related Financial Risk Disclosure Law" (SB 261) has been blocked in court following corporate opposition.