Korean drone startups test wares in the Great White North to avoid red tape at home

Startups like Pablo Air and Nearthlab are pushing low-cost swarm and interceptor drones, but regulations and slow procurement still hinder Korea’s defense ambitions.

Published Modified
An image shows Pablo Air's drones flying using swarm-flight technology.

Five drones carrying plush dolls flew over the night sky above Everland in Yongin, Gyeonggi, last weekend, for the amusement park's The Guardians of Light show.

Unlike many drone shows, the five drones didn't require individually programmed flight paths. After receiving only broad instructions, the drones communicated with one another and automatically moved into position using autonomous swarm-flight technology developed by Korean drone startup Pablo Air.

The drones carried dolls because they were part of an amusement park show. But if they carried explosives instead, they could become weapons capable of independently locating and striking targets.

Drones have emerged as a central force in modern warfare, as seen in the recent Iran war. Iran deployed waves of Shahed-136 kamikaze drones, each costing about 50 million won ($32,400). Patriot interceptor missiles were used to counter them, but each cost up to 6 billion won. The United States has also fielded the low-cost Lucas drone, modeled after the Shahed. The ability to deploy large numbers of inexpensive drones is increasingly becoming a decisive factor in determining the outcome of conflicts.

Korean defense companies have established global competitiveness in conventional weapons such as tanks and self-propelled howitzers, but remain latecomers in military drones.

The global military drone market is projected to grow from $15.8 billion in 2025 to $22.8 billion in 2030, increasing around 7.8 percent annually, according to market tracker MarketsandMarkets. Yet no Korean defense company has emerged as a major contender in the sector.

But a growing number of defense technology startups are preparing initial public offerings, with ambitions to become Korea's version of U.S. defense technology company Anduril Industries.

Nearthlab and Pablo Air are among the most prominent examples.

The emerging companies especially focus on cost-effectiveness.

Pablo Air is developing kamikaze drones for less than 10 million won using inexpensive materials such as foam board. The company also aims to address manpower shortages through swarm-flight technology that allows a single operator to control 20 drones.

Kim Young-joon, founder and chair of Pablo Air, poses for a photo with the company's low-cost S10s drone made using foam board.

“Rather than competing on drone specifications or hardware performance, what matters is the ability to rapidly produce low-cost drones and operate them efficiently,” said Kim Young-joon, founder and chair of Pablo Air. “Swarm flight will emerge as the dominant technology.”

Nearthlab has developed KAiDEN, a small interceptor drone weighing 3 kilograms (6.6 pounds) that can fly at speeds of up to 250 kilometers (155 miles) per hour and destroy enemy drones through direct impact.

“Modern air defense is no longer a competition of performance but a competition to build sustainable systems,” said Choi Jae-hyuk, CEO of Nearthlab. “KAiDEN's strategy is to respond to expendable threats with expendable systems.”

Korean drone startups are rapidly closing the technology gap. Their challenge lies in combat experience and procurement records.

Korea lacks facilities where private companies can conduct explosive drone tests because of various regulations. At the same time, military procurement procedures create significant barriers for introducing new weapons systems.

The Air Force's Air & Missile Defense Command conducts a drone intrusion response drill on June 24.

“Because we don't have a track record of supplying the military, we sometimes have overseas clients ask why they should use our products when even our country's military doesn't," Pablo Air's Kim said. “We even conducted suicide drone tests in Canada because we couldn't do them in Korea.”

Experts say the government needs to take a more proactive approach.

“Under current procedures, it takes five to 10 years for the military to acquire a new weapons system,” said Jang Won-jun, a professor in the Department of Advanced Defense Technology and Industry at Jeonbuk National University. “For drones, there needs to be a system that allows the military to quickly purchase prototypes even in small quantities.”

Some experts also argue that the industry remains too fragmented because drones are designated as products reserved for competition among small and medium-sized enterprises (SME). Under the system, public institutions are required to purchase such products through competitions limited to SME, restricting bidding by large companies.

Korea had 6,493 drone-related companies as of December 2024, but their average annual revenue was only 171 million won, according to the Korea Institute of Aviation Safety Technology. Of those, 678 were drone manufacturers, with an average annual revenue of just 686 million won.

“Regulatory reforms are needed so companies with sufficient capital and technological capabilities can enter the market,” said Choi Ki-il, a professor in the Department of Military Studies at Sangji University. “At the same time, the government needs to make bolder investments in capable startups.”


BY NAM YOON-SEO [[email protected]]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.