South Korea has selected gaming and AI firm NC AI and defense manufacturer Hyundai Rotem to develop next-generation military robotics technologies aimed at advancing autonomous battlefield systems and manned-unmanned combat operations.

The project, ordered by South Korea’s Agency for Defense Development, focuses on building a physical AI-based integrated simulator and modular robotic system designed to improve operational efficiency in future combat environments.

‘World model’ technology

Under the government-backed initiative, NC AI will lead development of a “world model,” a core technology considered critical for next-generation robot foundation models.

According to the company, world models allow robots to simulate real-world physics, terrain behavior, and environmental changes before converting those scenarios into training data.

The approach is intended to reduce the so-called “sim-to-real gap,” where robots trained in virtual environments struggle to perform reliably in real-world conditions.

NC AI said its selection reflects growing recognition of its in-house capabilities in physical AI and world model technologies, areas currently dominated by major global technology firms including Google DeepMind and Nvidia.

Hyundai Rotem plans to combine large-scale, high-precision 3D virtual environment development with proprietary 3D generative AI technologies.

It also intends to build a synthetic data pipeline capable of generating large volumes of robot training data for complex defense scenarios.

Lee Yeon-soo, CEO of NC AI, revealed the technology would help accelerate AI adoption across South Korea’s defense sector.

“We will develop a world-class physical AI simulator that seamlessly connects virtual and real environments and take the lead in accelerating defense AI transformation in Korea,” Lee said.

Expanding autonomous systems

Separately, Hyundai Rotem secured two state-backed projects focused on advancing autonomous military robotics and unmanned battlefield operations.

The first project centers on software that allows soldiers to control multiple unmanned robots simultaneously using natural language commands rather than separate controllers for each machine.

The capability is expected to support coordinated operations involving Hyundai Rotem’s HR-Sherpa unmanned ground vehicle and quadruped robotic systems. The goal is to enable scalable robotic swarm formations and future manned-unmanned teaming concepts on the battlefield.

The second project involves the development of a digital twin simulator designed to test and evaluate autonomous systems in realistic virtual environments before deployment.

Hyundai Rotem said the simulator would allow repeated performance validation under different battlefield conditions without time or spatial limitations.

Robotic warfare, digital twin systems

The broader initiative also includes development of a modular robotic platform equipped with four-legged mobility, detachable wheels, and mission-configurable payload systems.

Analysts said the project positions Hyundai Rotem to benefit from the wider robotics ecosystem of Hyundai Motor Group.

They also pointed to the company’s relationship with Boston Dynamics, known for advanced robotic systems capable of autonomous navigation, machine vision, and operating in complex terrain.

The projects were awarded by South Korea’s Ministry of Trade, Industry and Energy and the Agency for Defense Development, which selected Hyundai Rotem as the final contractor.

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