SOUTH KOREA The Seoul space race, in private hands

After the successful launch of the Nuri rocket -with technology developed entirely in the country-, the South Korean government plans to hand over the direction of the KARI aerospace program to private companies. A new agency entirely dedicated to the development of the “space economy” will open its doors in the city of Sacheon.

Seoul () – South Korea has been recognized for decades as an industrial power, a technological vanguard and a beacon of innovation. From semiconductors to telecommunications to electric cars, the country is a key player in many fields, with South Korean companies holding large market shares. However, in the aerospace sector, Seoul seemed to be at the tail end of other advanced economy countriesAt least until a few weeks ago.

On June 21, the Nuri space rocket, also known as KSLV-II, was successfully launched from the Naro space center in southern South Korea. The launch was successful, putting two test satellites into orbit. Composed entirely of locally developed space technology, Nuri has enabled South Korea to become the seventh power in the world capable of performing this feat on its own, from its design to its operation. “Following communication with the ground station of the Korea Aerospace Research Institute (KARI) in Daejeon, the deployment capability of the Nuri-launched satellite itself has been fully confirmed,” the Ministry of Science and ICT announced.

The path of development has taken years. In October 2021 another Nuri was launched and put into orbit, but the results were not satisfactory. The 2013 launch, on the other hand, had been successful, but it was a much less advanced version and still reliant on the importation of some important Russian-made components.

With Nuri’s success, a new chapter opens for the South Korean aerospace industry. The project, despite KARI’s leadership, was driven by the private investment: Of the 1,500 million dollars invested, 80% came from private companies. Hanwha Aerospace handled the construction of the engine, while Hyundai built the launch pad. In total, more than 300 companies participated.

From this point of view, South Korea is following a general trend in the space economy sector, which by 2040 could be valued at $1 trillion, as the rise of SpaceX well illustrates. Now, following Nuri’s success, the South Korean government plans to speed up the transition of KARI’s space program leadership to private companies. “We will invest boldly to open the era of space economy,” said President Yoon Suk-yeol congratulating the engineers and scientists who made the launch.

The government has promised to reform the sector from the ground up, mainly by preventing aerospace functions and projects from being left in the hands of the bureaucracy. Therefore, it is planned to merge them in a single central administration. The new agency should open its doors in the city of Sacheon, a major hub where many of the country’s aerospace industries are based. The objective is to strengthen public-private cooperation. In addition, to bolster South Korea’s competitiveness, the conservative president has promised to transfer the satellite and launch technologies developed through the Nuri project to the country’s companies.

As Lee Jong-ho, the new Minister of Science and ICTs, said, the private sector will play a greater role in public policies, especially in the aerospace industry. “At a time when technology is sovereignty, the public and private sectors must consolidate their capacities to strengthen strategic investments and unreservedly support and fortify the innovation ecosystem of industry, the academic world and research”, he had said when he took office in May.