Washington, DC – October 15, 2025 – In a significant boost to bilateral defense ties and unmanned aerial vehicle (UAV) innovation, South Korean defense powerhouse Hanwha Aerospace Co. and U.S.-based General Atomics Aeronautical Systems, Inc. (GA-ASI) have formalized a partnership to co-develop and produce a next-generation short take-off and landing (STOL) UAV. The agreement, signed on the sidelines of the Association of the United States Army (AUSA) 2025 exposition here on Tuesday, October 14, underscores the growing momentum in Indo-Pacific security cooperation amid escalating regional tensions.
Yonhap News Agency reported the development on Wednesday, highlighting how the deal positions the two nations to deliver runway-independent UAV solutions capable of operating in austere environments, from remote battlefields to naval decks. Dubbed the Gray Eagle Short Take-Off and Landing (GE-STOL) UAV, the platform builds on GA-ASI's proven Gray Eagle family, renowned for its medium-altitude, long-endurance (MALE) capabilities, while incorporating STOL enhancements for enhanced tactical flexibility.
Under the terms of the memorandum of understanding, Hanwha and GA-ASI will collaborate on designing and constructing a production-representative prototype. Key milestones include a maiden flight in 2027 and initial deliveries to international customers by 2028. This accelerated timeline is facilitated by an existing GA-ASI-funded demonstrator, known as the Mojave, which has already undergone rigorous testing. The partnership adopts a 70:30 cost-sharing model, with GA-ASI leading final system integration and Hanwha overseeing domestic assembly in South Korea.
Hanwha Aerospace President and CEO Son Jae-il emphasized the strategic fit during a post-signing briefing. "Leveraging our expertise in fighter jet engines, radar, and avionics, Hanwha is ready to become a comprehensive unmanned aviation company," Son stated. He added that the collaboration will "create jobs, secure specialized talent, and foster a robust domestic UAS [unmanned aircraft systems] ecosystem in Korea." The executive's comments reflect Hanwha's aggressive pivot toward unmanned systems, part of a broader 750 billion won ($527 million) investment plan announced earlier this year. This includes 300 billion won ($210 million) earmarked for GE-STOL development, production facilities, research expansion, and domestic component sourcing.
GA-ASI President Dave Alexander echoed the optimism, noting, "We'll be leveraging the expertise of both companies to quickly bring the Gray Eagle STOL to global customers." The U.S. firm, a pioneer in UAV technology since the MQ-1 Predator era, brings decades of experience, including over nine million cumulative flight hours across its fleet. For Hanwha, the deal marks a leap from its traditional strengths in artillery systems like the K9 howitzer to high-tech aerial platforms, aligning with South Korea's push for indigenous defense capabilities under the Yoon Suk-yeol administration.
The signing occurred amid the bustling halls of the Walter E. Washington Convention Center, where AUSA 2025 drew over 30,000 attendees from more than 80 countries. Billed under the theme "Agile, Adaptive, Lethal: Winning at the Pace of Change," the three-day event (October 13-15) served as a critical forum for showcasing U.S. Army priorities, from counter-unmanned aircraft systems (C-UAS) defenses to electronic warfare transformations. Army Secretary Dan Driscoll kicked off proceedings on Monday with a call to "shed reliance on decades-old technology," urging faster acquisitions to match adversaries' pace. Chief of Staff Gen. Randy George reinforced this during his Dwight D. Eisenhower Luncheon keynote on Tuesday, stressing continuous transformation for future battlefields.
A mock-up of the GE-STOL dominated the GA-ASI-Hanwha exhibit booth, drawing crowds eager to inspect its compact design: a wingspan optimized for 100-meter runways, reinforced landing gear for rough terrain, and modular payloads for reconnaissance, surveillance, target acquisition (RSTA), and counter-UAS missions. The UAV's STOL features enable operations from unimproved fields, beaches, or even underway amphibious ships without catapults or arresting gear—capabilities validated in a landmark November 2024 demonstration. During that test, a Mojave prototype launched from the South Korean Navy's ROKS Dokdo landing platform helicopter (LPH-6111) off Pohang, marking a first for U.S.-designed UAS in Korean waters.
Technically, the GE-STOL evolves from the MQ-1C Gray Eagle, a staple in U.S. Army operations since 2009, with upgrades like the Gray Eagle 25M's extended endurance (up to 25 hours) and multi-mission versatility. Hanwha will supply critical subsystems: turboprop engines derived from its aircraft gas turbine portfolio, robust landing gear, fuel systems, avionics suites, and mission equipment packages. This integration promises lower lifecycle costs through shared production and a modular open systems approach, facilitating manned-unmanned teaming (MUM-T) with platforms like the AH-64 Apache.
Market projections fuel the excitement. GA-ASI's analysis forecasts demand exceeding 600 units over the next decade, potentially generating 15 trillion won ($10.5 billion) in revenue. Potential buyers include the U.S. Department of Defense, South Korea's Ministry of National Defense, and NATO allies facing hybrid threats in Europe and the Indo-Pacific. The platform's shipborne potential aligns with U.S. Marine Corps distributed operations and South Korea's Dokdo-class expansions, enhancing deterrence against North Korean provocations and Chinese assertiveness in the South China Sea.
This partnership is no isolated event but the latest chapter in deepening U.S.-ROK defense-industrial integration. Earlier in April 2025, Hanwha and GA-ASI inked a preliminary collaboration following the Mojave trials, committing over 300 billion won to UAS infrastructure. Hanwha Group Vice Chairman Kim Dong-kwan hailed it as a "strategic pillar" for Korea's sovereign capabilities, strengthening the alliance forged during the Korean War. The conglomerate, with roots in chemicals and now a defense behemoth, has diversified aggressively: recent wins include 24 additional K9 howitzers for Norway and a contract from South Korea's Agency for Defense Development (ADD) for a 1,400-horsepower MUAV engine prototype by 2028.
Broader geopolitical currents amplify the deal's resonance. North Korea's UAV incursions—over 100 detected in 2024 alone—have spurred Seoul's 1.5 trillion won ($1.1 billion) unmanned systems R&D surge. Meanwhile, U.S. Indo-Pacific Command eyes STOL UAVs for archipelagic operations, where traditional runways are vulnerable. Analysts at the Center for Strategic and International Studies note that such collaborations counter China's dominance in low-cost drones, with export controls tightening on dual-use tech.
At AUSA, the GE-STOL booth buzzed with international delegations. European Security & Defence reported mock-up inspections by Polish and Australian officers, intrigued by its NATO interoperability. Social media amplified the news: OSINT firm Mintel World tweeted about the prototype timeline, garnering 1,700 views, while DronesLanding highlighted the 750 billion won investment as a "game-changer." Industry voices, like those from Janes, praised the "low-risk path" enabled by Mojave's flight data, predicting ripple effects for MQ-9 STOL kits.
Challenges loom, however. Supply chain vulnerabilities, exacerbated by global chip shortages, could delay avionics integration. Regulatory hurdles for cross-border exports under ITAR (International Traffic in Arms Regulations) demand meticulous compliance. Yet, the partnership's structure—dual production in Poway, California, and Changwon, South Korea—mitigates risks, fostering technology transfer and skilled workforce development.
Hanwha's investment blueprint extends beyond GE-STOL. The firm plans a dedicated Changwon facility for airframe assembly, engine testing, and payload calibration, creating hundreds of high-tech jobs. This aligns with Seoul's "Defense Reform 2.0," aiming for 20% export growth by 2030. For GA-ASI, the tie-up diversifies beyond U.S. contracts, tapping Asia's booming UAS market, valued at $25 billion by 2030 per Frost & Sullivan.
As AUSA 2025 wraps today, the GE-STOL accord stands as a testament to allied ingenuity. In an era of peer competition, where drones redefine warfare—from Ukraine's FPV strikes to Houthi Red Sea interdictions—this UAV promises to equip forces with agile, lethal tools. Son Jae-il's vision of Hanwha as a "comprehensive unmanned aviation company" now has concrete wings, poised for 2027 liftoff.
