[Special Stock] Vessel's UAM Subsidiary Expected to Soar in 1770 Trillion Market... First Reveal of Medium-sized Unmanned Aerial Vehicle

[Asia Economy Reporter Hyungsoo Park] Vesel is showing strong performance. Expectations for the growth of its subsidiary Vesel Aerospace appear to be influencing the stock price. Vesel Aerospace has appointed Kiwoom Securities as its lead underwriter and is preparing for a KOSDAQ listing in the second half of next year.

As of 10:34 AM on the 21st, Vesel is trading at 4,940 KRW, up 13.04% from the previous trading day.

Vesel Aerospace is pursuing Series A funding targeting institutional investors with the goal of listing on the stock market in the second half of next year. Vesel Aerospace, which boasts the only light aircraft manufacturing technology in Korea, attempted its first funding round last August but failed due to differing opinions with investors regarding the company’s valuation.

Vesel Aerospace was separated and established from Vesel in 2019 as a manufacturer of aircraft and related parts. It succeeded in developing the KLA-100, Korea’s first two-seat light manned aircraft. The company is currently undertaking a national project to develop a medium-sized unmanned aerial vehicle (UAV) with commercialization targeted for 2025.

Vesel Aerospace presents Joby Aviation, a UAM manufacturer established in the U.S. in 2009, as a peer company. Recently, it signed a strategic business agreement with SK Telecom for future mobility projects. As of the 17th (local time), Joby Aviation’s market capitalization reached $3 billion (approximately 3.58 trillion KRW).

When Vesel Aerospace raised funds last year, Joby Aviation’s market capitalization was around 1 trillion KRW. The increase in Joby Aviation’s valuation appears to be influenced by the growth prospects of the global UAM market. The U.S. investment bank Morgan Stanley forecasts that the global UAM market, which was $7 billion (about 8.4 trillion KRW) in 2020, will reach $1.4739 trillion (about 1,770 trillion KRW) by 2040. This is why about 300 global companies and institutions, including Archer Aviation, Overair, Lilium, and Ehang, are developing and investing in UAM technology.

Earlier, on the 16th, Vesel announced at the ‘2022 Drone Show Korea’ event that it would unveil for the first time a medium-sized vertical takeoff and landing UAV developed by its affiliate Vesel Aerospace. Vesel holds a 46.5% stake in Vesel Aerospace. The theme for participation in Drone Show Korea was set as ‘The GAME CHANGER.’ The company explained that this signifies showcasing an aircraft with performance and specifications on a different level from existing unmanned aerial vehicles (multicopter-type drones).

The UAV developed by Vesel Aerospace can fly for more than four hours at speeds of up to 180 km/h at an altitude of 4,000 meters. Compared to most drones, which fly at speeds of 50?60 km/h for less than an hour, this greatly expands the scope of mission capabilities.

Through the Drone Show Korea event, Vesel plans to demonstrate its top-tier independent vertical takeoff and landing aircraft design and development capabilities in Korea. A company official stated, "Through continuous advancement, we will establish a multi-purpose integrated operation system capable of performing missions in hazardous terrains, polluted areas, and nighttime or severe weather conditions where manned aircraft deployment is difficult, and supply unmanned aerial vehicle operation systems beyond Korea to overseas markets."

This content was produced with the assistance of AI translation services.