[Market Pulse] Era of Mass Satellite Production: Preparing for the Commercial Launch Service Market

"We Must Maximize the Utilization of Nuri"

Tae Seog Oh, Administrator of the Korea Aerospace Administration (KASA)

Living in Sacheon, Gyeongnam, every time I look out over the southern coastal waters, I feel the anguish and urgency of Admiral Yi Sun-sin, who fought against the Japanese invasion over 430 years ago, permeating these seas.

This is also the site where the Korea Aerospace Administration (KASA) was established, and it is the very battlefield of the Battle of Sacheon, where the turtle ship was first deployed in actual combat. Admiral Yi's experience of turning the tide with meticulous strategy despite unfavorable conditions offers us important lessons as we enter the uncertain international arena of space sovereignty and the space economy.

Following the successful fourth launch of Nuri last year, we are preparing for the fifth launch in the third quarter of this year. We also have plans in place to conduct annual launches until 2032. This is not simply a test; it is a systematic process to accumulate launch vehicle reliability and operational experience.

Although the launch cost of Nuri is still high, we are pursuing a strategy to radically reduce costs through the development of a reusable launch vehicle. While there was some controversy during the shift in strategy for next-generation launch vehicles, we have now entered the full-scale development phase, with work underway on system concept design, review of test facilities, and construction of a dedicated launch pad.

The era of mass satellite production has begun in earnest worldwide. Demand for various applications such as low-orbit satellite communication, space data centers, and ultra-small Earth observation satellites is surging, and the need for launch vehicles is rapidly expanding as well. However, the global launch service market is dominated by SpaceX, which leverages reusable technology, and a supply shortage has extended satellite launch wait times from several months to several years. New launch service providers, including companies specializing in small satellites, are also entering the market at a fast pace.

Our geographic conditions are disadvantageous in terms of launch efficiency and cost-effectiveness, because we are far from the equator and have limited available airspace for launches. However, this weakness is not a reason to delay market entry. If we wait until we have fully secured launch vehicle competitiveness, we risk entering the market only after it has become saturated. What is needed now is to pursue both technological advancement and proactive preparations for market entry.

From a security perspective, merely possessing launch vehicles is not enough. Only when we operate them continuously and cost-effectively, even during peacetime, do they become strategic assets. Launch vehicles that are not economically viable are difficult to maintain in times of crisis. The economic viability of a launch vehicle is not determined solely by engine performance. Factors such as the efficiency of manufacturing processes, testing and certification systems, launch site operations, customer service, and schedule adherence all impact price and reliability.

Along with technological advancement, we must strengthen the launch vehicle industry ecosystem from the perspective of a service industry. To this end, first, we must maximize the utilization of Nuri. By actively securing both domestic and international satellite demand, we should increase the launch frequency from once to at least twice a year. Increasing launch frequency is not just about reducing costs; it is a key factor for reliability and customer acquisition.

Second, we should develop technologies and service models to offset geographic constraints. We need to build a flexible transportation system that can meet diverse orbit requirements by utilizing various means such as orbital transfer vehicles (OTVs) and overseas launch sites to overcome the limitations of launch locations. Furthermore, we need package business models that link satellite development with launch services.

Third, we must clearly define the division of roles between the public and private sectors for launch service operations. Since profitability is limited in the early market, the government should act as an 'anchor customer' by providing stable demand, while the private sector should be responsible for launch service operations and customer acquisition. To achieve this, we need to design systems based on launch service purchase contracts and further specify the framework for public-private cooperation.

The launch service market is an industry where the first-mover advantage is significant. If we do not enter the market now, we may miss our opportunity. Space sovereignty is not achieved through technology development alone. It is only completed when we operate sustainably in the market and secure competitiveness.

Tae Seog Oh, Administrator of the Korea Aerospace Administration (KASA)

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