South Korean defense startup pulls out of Ukraine amid diplomatic dispute
Photo: Sengwon Cho, CEO of Newtype Industries (Getty Images)
Newtype Industries, a defense startup based in Seoul, claims that a diplomatic dispute between Ukraine and South Korea led to the suspension of the tests, according to The Diplomat.
Startup loses opportunities
In mid-October, Sengwon (Joe) Cho was informed that his company's operations in Ukraine were to be suspended, the agency reports.
Cho is the CEO of Newtype Industries, which had been testing its AI-based artillery software, called Barbara, with the Ukrainian Armed Forces.
He says that a Ukrainian official overseeing the collaboration informed him of an order from above to halt all work in this area. Cho is convinced that the ongoing rift between South Korea and Ukraine is to blame.
"The main reason for ending the cooperation was the diplomatic conflict between South Korea and Ukraine," he says, referring to Kyiv's disclosure of information regarding the transfer of two North Korean prisoners of war to Seoul.
Newtype Industries' work
In August, Newtype was announced as the first South Korean defense startup to conduct tests in Ukraine. President Volodymyr Zelenskyy expressed interest in a drone deal with Seoul.
Newtype's software, called Barbara, addresses targeting and communication issues—a key weakness of field artillery, according to Cho, a former South Korean army officer.
A soldier dictates a report into a smartphone, and voice AI converts the report into a structured message for the officer in charge of fire control. The software can flag incorrect coordinates or a potential target in a civilian area, but the final decision to fire is made by a human.
Newtype collaborated with two Ukrainian units. According to Cho, they stated that Barbara offered what their systems lack. Newtype expected to complete the trials in 2026.
Diplomatic dispute
The planned tests, field feedback, and negotiations regarding the technology's implementation were canceled or postponed indefinitely following the recall of the South Korean ambassador from Ukraine. The company also halted its search for new Ukrainian partners.
There is no official confirmation of a link between the order to halt operations and the diplomatic conflict, the agency reports.
At present, Newtype has no plans or timeline for returning to Ukraine, although it may reconsider its decision if relations normalize.
"Virtually all the partnerships and the local network of contacts our company had built have stopped functioning," Cho says.
Earlier, the Ukrainian Ministry of Foreign Affairs called for restraint and urged careful analysis of the actual statements made by South Korean Foreign Minister Cho Hyun. There is no question of severing diplomatic relations between the two countries.
In addition, South Korean Foreign Minister Cho Hyun does not rule out severing diplomatic relations with Ukraine if the current escalation of disagreements continues.
The diplomatic dispute between Kyiv and Seoul intensified when President of Ukraine Volodymyr Zelenskyy announced at the UN General Assembly that two prisoners of war from North Korea had been transferred to South Korea.
