Korea Rises as a Top 7 Space Power... New Challenge of 'Opening the Era of Private Space' [Nuriho Success]

Became a 'Space Power' but Industry Share Below 1%
71% of Space Industry Led by Private Companies
Shift Needed from State-Led to Private-Led Efforts

The Korean launch vehicle Nuriho (KSLV-II), developed with domestic proprietary technology, is undergoing its second launch on the afternoon of the 21st at the Naro Space Center in Goheung-gun, Jeollanam-do. / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung, Intern Reporter Song Hyundo] With the successful launch of Nuriho, developed purely with domestic technology, South Korea has established itself as a 'space power' capable of independently launching commercial satellites. The remaining challenge is to activate the space economy led by the private sector rather than the state. This is because the future space industry is expected to shift its focus mostly to private projects.

71% of the Global Space Industry is Private... South Korea Still Below 1% Market Share

According to a report by the aerospace non-profit organization 'Space Foundation,' as of 2019, 71% of the global space industry stake is held by private companies. The United States, the world's largest space economy, used to develop launch vehicles and conduct space exploration projects through NASA, but now collaborates with private companies. The reusable launch vehicle manufacturer 'SpaceX,' which transports cargo to the International Space Station, is a representative example.

The development process of Nuriho was led by the Korea Aerospace Research Institute (KARI). The photo shows researchers inside the Satellite Integrated Control Room at KARI in Eoeun-dong, Yuseong-gu, Daejeon on the 21st. / Photo by Yonhap News

South Korea's space industry, which has just taken its first steps, is currently operated under state leadership. The development project of the 'Korean-type space launch vehicle,' including Nuriho, was led by the Korea Aerospace Research Institute (KARI) under the Ministry of Science and ICT (MSIT). Although about 300 private companies participated in the development and manufacturing of Nuriho, the entire project could not have been carried out without the government's support of a total budget of 2 trillion won and KARI's leadership.

South Korea's private space industry was estimated at 3.261 trillion won annually as of 2020 (MSIT estimate). This is less than 1% of the global space industry, which is about 400 trillion won in scale. This is why there are calls to nurture private space companies for South Korea to truly rise as a space power.

Domestic Space Startups Dreaming of Becoming the Second 'SpaceX'

Although still in the early stages compared to existing space powers, South Korea also has emerging space companies dreaming of becoming the second SpaceX. 'Innospace,' the first domestic private company to develop a space launch vehicle, unveiled its test launch vehicle 'Hanbit TLV' at its facility in Cheongju on the 29th of last month. Hanbit TLV, a first-stage rocket about 16.3 meters tall, 1 meter in diameter, and weighing approximately 9.2 tons, attracted attention by showcasing hybrid engine technology that combines features of liquid and solid rockets. The hybrid engine has advantages such as a simple structure, thrust control capability, and reduced explosion risk by using solid paraffin as fuel.

Test launch vehicle 'Hanbit-TLV' by 'Innospace' unveiled last month / Photo by Yonhap News

There is also 'Unastella,' which was finally selected on the 11th of last month for the Ministry of SMEs and Startups' private investment-led technology startup support program 'TIPS.' Founded in February by CEO Park Jaehong, a former member of the German Aerospace Center (DLR), the company aims to open the era of space tourism by developing manned launch vehicles. It plans to conduct a combustion test of a six-seat manned launch vehicle weighing about 20 tons within this year. If Unastella succeeds in developing a manned launch vehicle, South Korea will become the fourth country in the world to build a manned spacecraft after Russia, the United States, and China.

Existing manufacturers who participated in the development of Nuriho also have the potential to play an active role in the export market through the accumulated R&D know-how. Hanwha Group produced key components of the Nuriho engine, such as turbo pumps and valves, and assembled six complete first-stage engines through its space business affiliate 'Hanwha Aerospace.' Last year, Hanwha established 'Space Hub,' a control tower overseeing the group's space business, and plans to enter the global launch vehicle market through this.

Advanced Countries like the US and UK Approaching 'Private-led Era'

Advanced space countries overseas have already approached the era of private-led space development. The United States, the world's largest space economy, hosts various launch vehicle manufacturing companies such as SpaceX, Blue Origin, and Rocket Lab. American private space companies are also involved in national space exploration missions like NASA's lunar exploration plan, the 'Artemis Project.'

As of last year, the UK, with a space industry worth 16.5 billion pounds (about 26 trillion won) annually, is constructing the first 'commercial spaceport' through private space startups and has established and operates 'Seraphim Capital,' a venture capital (VC) specializing in investing in space-related startups.

Japan, in preparation for the private space era, has embarked on large-scale regulatory reforms. Since 2016, Japan has enacted the 'Space Activities Act,' introducing comprehensive regulations on private companies' satellite launch permits, management approvals, and liability for damages caused by rocket and satellite accidents.

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