Defense industry artificial intelligence (AI) startup Newtype Industries (Newtype) announced on December 23 that it has secured seed investment from domestic deep-tech accelerators Bluepoint Partners and The Next Lab, as well as Myungshin Information & Communications. The specific investment amount and company valuation remain undisclosed.
Newtype, which spun off from Myungshin Information & Communications this year, is a defense software company focused on improving decision-making processes on the battlefield using AI. Its main product, the "AI Target Processing and Tactical Fire Command Solution," automates the entire process from target identification by artillery commanders and observers to strike decision-making. This solution digitizes the tactical voice communication system, which had remained unchanged for the past 88 years.
The company's core strength lies in "domain expertise-based problem solving." CEO Cho Sungwon built his field experience during 12 years of service as an artillery officer. By forming a team of experts with front-line unit backgrounds and collaborating with technology partners, Newtype has established a rapid iterative development and field feedback integration system.
In particular, Newtype is pursuing a reverse-entry strategy: targeting the U.S. military first, then entering the South Korean military market. By leveraging the U.S. military’s Rapid Prototyping Policy, the company is accelerating procurement entry, aiming for U.S. military force integration and South Korean market entry next year. The total market size is estimated at 6.9 billion dollars, targeting 59 U.S. Army Brigade Combat Teams (BCTs) and 48 South Korean military units.
Choi Wonki, Chief Investment Officer at Bluepoint, commented, "Newtype is not just a company in a specific technology domain, but a team seeking to fundamentally redesign the decision-making structure of the battlefield. Their approach-defining requirements proactively based on combat domain expertise and using the U.S. military as a testbed to validate both products and systems-shows a trajectory entirely different from the conventional practices of Korea’s defense industry."
With this investment, Newtype plans to accelerate its business model. Rather than waiting for the military’s traditional acquisition process, the company intends to proactively develop and present essential battlefield solutions to the armed forces. This is a model already validated by U.S. defense innovation companies such as Anduril.
CEO Cho Sungwon stated, "Combatants have the right to use products developed by companies that understand the battlefield, and Newtype’s strength is precisely its 'warfare expertise.' The innovative companies that will lead the future of defense are not those that simply build to order, but those that develop and propose weapon systems for battlefield use ahead of demand."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
