Hanwha Systems (KRX:272210) and BAE Systems signed a memorandum of understanding to co-develop a multi-sensor satellite system that targets the global intelligence, surveillance, and reconnaissance (ISR) markets, BAE Systems said in a Tuesday press release.

The collaboration will bring together BAE's ultra-wide band RF sensors with Hanwha Systems' expertise in next-generation Synthetic Aperture Radar (SAR) to create a space-based ISR platform. The planned system will integrate RF and SAR data using onboard AI-powered edge processors for real-time intelligence delivery, the release said.

Shares of the South Korean aerospace and defense company rose nearly 1% in recent trade on Thursday.