Quantum-Systems at the 2026 Farnborough Airshow [Reuters=Yonhap News File Photo]

As drones and autonomous systems fundamentally reshape modern warfare, major global defense contractors are pouring record amounts of capital into startups, according to a report by the British newspaper Financial Times (FT) on the 26th (local time).

According to data firm Dealroom, large defense contractors—which have long-standing relationships with governments of advanced Western nations—have participated in venture capital (VC) investments totaling $4.1 billion (approximately 5.99 trillion KRW) so far this year alone.

Gwen Bion, a partner in the Aerospace & Defense division at investment bank PJT, stated, "Recent conflicts have highlighted the need for modern warfare where new technologies are integrated alongside traditional platforms," adding, "Major defense contractors are looking to secure access to these technologies."

This trend was also evident at the recently held Farnborough International Airshow in the UK. While civil aerospace companies previously dominated, half of the 1,636 participating companies this year were defense-related, marking a record high.

Due to recent conflicts such as the war in Ukraine, governments are increasing spending to secure weapons ranging from interceptor missiles to autonomous drones that can be produced quickly and at a lower cost.

According to another data firm, Dealogic, global defense-related transactions, including mergers and acquisitions (M&A) and fundraising, have reached $40 billion (approximately 58.52 trillion KRW) this year. At this pace, it is expected that the annual record of $59 billion set in 2019 will be surpassed.

The FT pointed out that as competition intensifies due to the rapid shifts in warfare, large firms that once focused solely on core markets—such as fighter jets, warships, and small arms—are now in a position where they must "think and adapt like venture capital investors."

The French defense technology group Thales has agreed to acquire Exail Technologies, a company listed on the Paris stock exchange, for 3.9 billion euros (approximately 6.49 trillion KRW).

The US-based Lockheed Martin beat out competitors to submit a bid of $3.45 billion (5.05 trillion KRW) for the acquisition of the marine technology group Ultra Maritime. Furthermore, the company announced that it would invest at least $100 million in startups in Europe, including the UK. Frank St. John, Chief Operating Officer of the company, said, "Our company is looking for untapped capabilities in Europe."

German drone manufacturer Quantum-Systems recently raised $1.2 billion (1.76 trillion KRW) in new funding with support from investors including Airbus, achieving a corporate valuation of $8 billion (11.7 trillion KRW), and the UK’s Kraken Technology also announced $175 million (260 billion KRW) in funding with support from companies like Rheinmetall.