Korea’s Top Drone Maker Takes on the Global Market
U.S. Passes Law Banning Use of Chinese DJI Drones
Surging Demand in Security, Road Mapping, and Control Sectors
ALUX Aims to Double Drone Revenue
Targeting the KRW 55 Trillion Global Drone Market
“Last year, the U.S. Congress passed a law banning the use of DJI drones—the world’s largest drone maker—which created a major opportunity for us.”
In a recent interview, Lee Chi-heon, CEO of ALUX, Korea’s leading commercial drone manufacturer, shared this bold outlook.
“DJI currently holds 60% of the global drone market, which is growing by 15% annually. With the sanctions in place, we now have the chance to expand our share in the North American market,” he said.
“Fortunately, after the legislation passed, we began receiving a flood of inquiries from the U.S. and other countries looking to replace Chinese products. Leveraging our technological edge—with over 90% of drone components localized—we plan to more than double our drone revenue this year.”
ALUX, a KOSDAQ-listed company, was co-founded in 2015 by Lee and co-CEO Lee Da-in. Initially, the company focused on manufacturing coding education robots and drones for elementary and middle school students. Even today, about 80% of its KRW 55 billion (approx. USD 40 million) in 2023 revenue still comes from educational kits, including coding robots. The company launched its drone business in 2020, leveraging its coding expertise. Within two years, it introduced its first educational drone and quickly grew drone revenue from KRW 1 billion to KRW 10.9 billion in 2023. ALUX now dominates over 50% of Korea’s educational and commercial drone market.
Lee attributes the success of the drone division to technological internalization. ALUX is the only company in Korea to independently develop and manufacture Flight Controllers (FCs)—the “brains” of a drone that stabilize its center of gravity.
When ALUX first entered the U.S. market in 2023, it faced regulatory hurdles: drones containing more than 10% Chinese-made parts were banned. In response, the company ramped up localization efforts, effectively "de-Chinizing" its supply chain. As a result, ALUX successfully exported USD 1 million worth of drones to the U.S. and achieved USD 5 million in exports to both the U.S. and Japan over two years.
In November 2023, the company went public on KOSDAQ—becoming the first drone firm to list—boosting global credibility. ALUX now aims to increase its market share globally, with a particular focus on North America.
Industry experts forecast the global drone market to grow from KRW 32 trillion in 2021 to KRW 55 trillion this year, reaching KRW 146 trillion by 2032. Despite this growth, competing with Chinese manufacturers—who hold about 90% of the market—has been difficult, particularly with DJI dominating 60%. Korean firms have lagged in development and price competitiveness.
But Lee believes 2024 marks a turning point.
“If a second Trump administration materializes, we expect stronger anti-China policies that aim to reduce reliance on Chinese drones,” he said.
“In that case, I believe we can finally overcome the ‘Great Wall’ of DJI with our own drones.”
In September 2023, the U.S. House of Representatives passed legislation banning DJI’s new products from use in the U.S. More recently, the U.S. Department of Commerce has begun reviewing additional sanctions on Chinese drones.
Lee added,
“We’re seeing rising demand for drones in U.S. sectors like security, road surveying, and centralized control. The more the U.S. tightens restrictions on China, the more doors open for us.”
Korea’s Top Drone Maker Takes on the Global Market
U.S. Passes Law Banning Use of Chinese DJI Drones
Surging Demand in Security, Road Mapping, and Control Sectors
ALUX Aims to Double Drone Revenue
Targeting the KRW 55 Trillion Global Drone Market
“Last year, the U.S. Congress passed a law banning the use of DJI drones—the world’s largest drone maker—which created a major opportunity for us.”
In a recent interview, Lee Chi-heon, CEO of ALUX, Korea’s leading commercial drone manufacturer, shared this bold outlook.
“DJI currently holds 60% of the global drone market, which is growing by 15% annually. With the sanctions in place, we now have the chance to expand our share in the North American market,” he said.
“Fortunately, after the legislation passed, we began receiving a flood of inquiries from the U.S. and other countries looking to replace Chinese products. Leveraging our technological edge—with over 90% of drone components localized—we plan to more than double our drone revenue this year.”
ALUX, a KOSDAQ-listed company, was co-founded in 2015 by Lee and co-CEO Lee Da-in. Initially, the company focused on manufacturing coding education robots and drones for elementary and middle school students. Even today, about 80% of its KRW 55 billion (approx. USD 40 million) in 2023 revenue still comes from educational kits, including coding robots. The company launched its drone business in 2020, leveraging its coding expertise. Within two years, it introduced its first educational drone and quickly grew drone revenue from KRW 1 billion to KRW 10.9 billion in 2023. ALUX now dominates over 50% of Korea’s educational and commercial drone market.
Lee attributes the success of the drone division to technological internalization. ALUX is the only company in Korea to independently develop and manufacture Flight Controllers (FCs)—the “brains” of a drone that stabilize its center of gravity.
When ALUX first entered the U.S. market in 2023, it faced regulatory hurdles: drones containing more than 10% Chinese-made parts were banned. In response, the company ramped up localization efforts, effectively "de-Chinizing" its supply chain. As a result, ALUX successfully exported USD 1 million worth of drones to the U.S. and achieved USD 5 million in exports to both the U.S. and Japan over two years.
In November 2023, the company went public on KOSDAQ—becoming the first drone firm to list—boosting global credibility. ALUX now aims to increase its market share globally, with a particular focus on North America.
Industry experts forecast the global drone market to grow from KRW 32 trillion in 2021 to KRW 55 trillion this year, reaching KRW 146 trillion by 2032. Despite this growth, competing with Chinese manufacturers—who hold about 90% of the market—has been difficult, particularly with DJI dominating 60%. Korean firms have lagged in development and price competitiveness.
But Lee believes 2024 marks a turning point.
“If a second Trump administration materializes, we expect stronger anti-China policies that aim to reduce reliance on Chinese drones,” he said.
“In that case, I believe we can finally overcome the ‘Great Wall’ of DJI with our own drones.”
In September 2023, the U.S. House of Representatives passed legislation banning DJI’s new products from use in the U.S. More recently, the U.S. Department of Commerce has begun reviewing additional sanctions on Chinese drones.
Lee added,
“We’re seeing rising demand for drones in U.S. sectors like security, road surveying, and centralized control. The more the U.S. tightens restrictions on China, the more doors open for us.”