South Korea Space Industry

After having successfully launched its space launch vehicle known as “Nuri” for two consecutive times, South Korea has affirmed its status as the 7th country in the world with capability to have launched a rocket developed using indigenous technology.

In March 2023, the Ministry of Science and ICT (MSIT) announced the details of its space program budget for 2023. South Korea plans to spend 874.2 billion won ($674 million), which is a 19.5% increase from the previous year, and this is by far the largest budget the country has ever set aside for space programs. While about 586.2 billion won ($450 million), which accounts for nearly 70 percent of the budget, will be used for developing the domestic space industry, it also plans to use about 148 billion won ($114 million), or 17% of its budget, for developing a space carrier rocket.

The key focus area for domestic space program development is mainly centered on expanding the development of civil satellite programs which includes programs such as micro-satellites,  geo-stationary orbit satellites, next generation medium satellites, and the Korea Positioning System (KPS). The South Korean government believes that expanding the supply of civil satellites would provide a foundation for the Korean space industry to grow in the future. This also explains the reason why the government is aiming to enhance the quality of satellite information services that can be applied to multiple areas including maritime, environment, weather, and agriculture. 

Along these lines, South Korea is investing 48.7 billion won ($37.5 million) by 2026 to enhance the integrated control and operations of civil satellites, and 12 billion won ($9.2 million) with aims to localize the satellite parts and components.

The key focus area in the space carrier domain is to develop the space launch vehicle also known as “Nuri (KSLV-II)” and the next generation launch vehicle (KSLV-III) that will succeed Nuri. The next generation launch vehicle is being developed with the plan for a test-launch in 2030. After the first test-launch in 2030 and 2031, respectively, South Korea plans to launch a locally developed robotic lunar lander on the rocket by 2032. A total of 2 trillion won ($1.8 billion) will be invested in the KSLV-III development program beginning 2023.  The program will be developed by the Korea Aerospace Research Institute (KARI) and the selected system integrator from the private sector. 

To bolster its space defense capabilities, South Korea will be spending 95.4 billion won ($73.1 million) in 2023. South Korea plans to invest 1.4 trillion won ($1.1 billion) in developing its reconnaissance satellites as well as a micro-satellite constellation under a government program that will run through 2030.

Similar to the defense industry, the United States continues to be the leading foreign supplier of key products and services in the space industry taking up a prominent share of the Korean imports. The space market in Korea presents market opportunities particularly in satellite launching services, high-tech sensors and optical devices for payload systems.  

For more information contact your local U.S. Commercial Service office or Office.Seoul@trade.gov.