Hanwha Group has taken a stake in Vatn Systems, a Rhode Island-based developer of autonomous underwater vehicles, as the South Korean conglomerate accelerates its penetration of the US defense sector.
The investment was part of a $60 million (₩88 billion) Series A round completed in October, Reuters reported. Hanwha Systems, the group’s defense electronics unit, participated in the financing alongside other affiliates.
Vatn Systems manufactures torpedo-shaped drones priced at approximately $75,000 each, designed for surveillance operations or offensive deployment. The startup has raised $76.5 million (₩112 billion) to date and opened a manufacturing facility capable of producing up to 2,000 vehicles annually.
The deal underscores Hanwha’s broader ambitions in American defense markets, where the group already operates Philly Shipyard following its $100 million acquisition last year. The conglomerate recently announced plans to invest over ₩1 trillion ($690 million) in a restructured US holding company focused on defense and energy assets.
Pentagon planners have prioritized unmanned maritime systems as a cost-effective countermeasure against potential Chinese aggression in the Taiwan Strait. Autonomous vessels could help offset China’s numerical advantages in conventional naval forces without requiring large crew deployments.
However, Hanwha faces challenges translating its Korean naval expertise into American contracts, where domestic content requirements and security clearances create significant barriers for foreign entrants.
