Naver Invests in Drone Startup UVify to Expand Into Physical AI

Naver has taken a stake in South Korean drone startup UVify, a move to secure technology related to drones and advanced air mobility as physical artificial intelligence built around autonomous systems broadens into those fields.

Naver said June 1 that it invested in UVify, without disclosing the size of the deal. Founded in 2014 by Chief Executive Officer Lim Hyun, who holds a doctorate in aerospace engineering from Seoul National University, UVify develops drone swarm-flight technology and autonomous flight platforms.

The company aggressively targeted overseas markets from its early years and in 2024 became the first South Korean drone company to receive the $10 million Export Tower award. It is also the only South Korean company on the board of the Dronecode Foundation, the global organization that oversees PX4, the open-source flight-control software and operating system often described as the Android of the drone industry. UVify posted about $10.9 million in revenue last year and operating profit of about $725,000.

The market for robots and physical AI systems with autonomous functions is projected to widen into drones, advanced air mobility and urban air mobility. Counterpoint Research estimates cumulative shipments of physical AI devices will reach 145 million units from last year through 2035. It expects robots, autonomous vehicles and drones to lead the market over that period. UVify's technology for controlling swarms of drones could also become an important part of Naver's smart-city solutions business.

"As AI expands into the physical world, drones are also drawing attention as one of the key technologies of the future," Naver Chief Executive Officer Choi Soo-yeon said. "The synergy between the two companies' technologies will create opportunities across a range of fields."

Hur Jin, Korea Economic Daily reporter, hjin@hankyung.com