For much of the 20th century, defense technology was developed within a closed military-industrial system. Governments set requirements, contractors built platforms and civilian industries later benefited from spillover effects. That world is changing.
Today, technologies first developed or scaled in the civilian economy — artificial intelligence, semiconductors, robotics, batteries, cloud computing, autonomous systems, synthetic-aperture radar satellites and commercial drones — are central to military power. This is the new reality of dual-use technology.
At NextRise Seoul 2026, one of Korea’s leading startup conferences, I recently spoke about the importance of dual-use technology for the future of the defense industry.
Dual-use technology refers to technologies that can serve both civilian and defense purposes, but its strategic significance goes far beyond that definition. It changes the operating system of defense innovation by shortening development cycles, expanding the supplier base, bringing startups into national security and compelling defense institutions to think beyond traditional platforms.
The wars in Ukraine and the Middle East have made this transformation visible. Drones, commercial satellite imagery, electronic warfare, AI-supported targeting, software updates and low-cost autonomous systems have altered the battlefield. Tanks, artillery, aircraft and ships remain essential, but their effectiveness increasingly depends on data, sensors, networks, software and speed of adaptation. The battlefield is now defined by the ability to sense, decide and act faster than the adversary.
This has major implications for Korea. Korea has already built one of the world’s most impressive defense-industrial bases. The K2 tank, K9 self-propelled howitzer, KF-21 fighter and Korea’s new submarines demonstrate that Korea can design, integrate and export advanced defense platforms.
But the next stage will not be secured by platforms alone. It will depend on whether Korea can integrate those platforms with the broader strengths of its civilian economy: semiconductors, batteries, shipbuilding, mobility, telecommunications, robotics, AI software, space systems and advanced manufacturing. Korea’s defense future depends on whether it can transform its national industrial base into a dual-use innovation ecosystem.
The global trend is clear. In the United States, Palantir, Anduril and Shield AI are redefining the boundaries among software, autonomy, sensors and defense operations. Palantir represents the data and decision layer of modern warfare. Anduril integrates sensors, command-and-control systems, autonomous systems and effectors into a software-defined defense platform. Shield AI demonstrates the rise of the “AI pilot.”
In Europe, Helsing, Quantum Systems and Iceye follow a similar pattern. Helsing reflects Europe’s drive to build sovereign AI-enabled defense capabilities. Quantum Systems provides tactical intelligence, surveillance and reconnaissance, or ISR, drones for real-time battlefield awareness. Iceye demonstrates how commercial space companies can support sovereign intelligence through synthetic-aperture radar satellites that monitor Earth day and night.
These companies are not merely defense startups. They represent a new structure of defense competition.
The future defense supply chain is no longer organized only around tanks, aircraft, artillery and submarines. It is increasingly organized around data, autonomy, software-defined systems, persistent ISR, AI-enabled command and control and scalable production of intelligent systems.
This shift presents both opportunities and challenges for Korean startups and SMEs.
Companies working in AI vision, autonomous navigation, robotics, cybersecurity, battery management, edge computing, drone swarming, satellite analytics or advanced materials can now find relevance in national security. However, defense markets require more than innovation. They demand reliability, security, compliance, certifications, export-control discipline and the ability to operate effectively under mission-critical conditions.
This is why Korea needs a new approach. It is not enough to tell startups to enter the defense market. Korea must build a bridge between civilian innovation and defense demand by providing mission-oriented problem statements, test beds, procurement pathways, security guidance, export-control education and engagement with both Korean defense primes and global companies.
If Korea wants to produce defense startups comparable to Anduril, Palantir and Shield AI in the United States, or to Helsing, Quantum Systems and Iceye in Europe, it must build more than incubators and slogans. These companies grew because technology was tied to real military problems, testing environments, government demand, patient capital and credible procurement pathways. Korea needs a mission-driven defense startup ecosystem in which operational problems are clearly defined, startups gain access to test beds, successful prototypes move toward procurement and defense primes treat new companies as sources of speed, software, autonomy and technological surprise.
The United States has already moved in this direction through programs linking commercial innovation to defense needs. Europe is also moving quickly, driven by the war in Ukraine and the urgent need to strengthen defense industrial capacity. Korea cannot afford to treat dual-use technology as a side issue. It should make dual-use technology a central pillar of defense industrial strategy.
Korea’s defense industry has succeeded by building strong platforms. Its next success will come from building a stronger ecosystem around those platforms.
Korea should not choose between the traditional defense industry and startups. It needs both. Dual-use technology is therefore not just a business opportunity. It is the bridge between Korea’s defense success today and its industrial relevance on tomorrow’s battlefields and in tomorrow’s markets.
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Man-Ki Kim
Man-Ki Kim is a professor at the KAIST Graduate School of Future Strategy, specializing in global public procurement, defense acquisition innovation and global strategic trends. He also serves as a senior adviser at Yulchon. The views expressed here are the writer’s own. -- Ed.
khnews@heraldcorp.com
