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Seoul drives to create 'Korean SpaceX' with landmark Hanwha deal, but challenges remain

Published: 28 Jul. 2025, 15:54 Updated: 28 Jul. 2025, 19:06

A signing ceremony for the transfer of the Nuri launch vehicle technology is held at the Korea Aerospace Research Institute (KARI) in Daejeon on July 25. From left: Lee Sang-cheol, president of KARI; Yoon Young-bin, administrator of the Korea AeroSpace Administration; and Son Jae-il, CEO of Hanwha Aerospace. [KARI]

Korea is handing the keys to its homegrown space rocket to the private sector — marking the country’s boldest move yet to join the global “New Space” race dominated by companies like SpaceX.

New Space refers to the recent shift in the space industry in which private companies, not governments, lead space development.

The Korea Aerospace Research Institute (KARI) announced that it had signed an agreement to hand over the full-cycle technology of the domestically developed Nuri launch vehicle to Hanwha Aerospace. This marks the first time KARI is transferring the entire suite of Nuri’s development capabilities — including design, manufacturing and launch operations — to a private company.

The transfer includes a total of 16,050 technical documents. While some 2 trillion won ($1.45 billion) in public funds was invested in developing the Nuri rocket, the two sides agreed on a technology transfer fee of 24 billion won, based on direct research and development costs. The agreement comes nearly two years and 10 months after Hanwha Aerospace was selected as the preferred negotiator.

Under the contract, Hanwha Aerospace has secured exclusive rights to lead Nuri production until 2032, which coincides with the government’s target for the next-generation Korean launch vehicle.

Major space powers, such as the United States, are already witnessing breakthroughs in the private sector. SpaceX, led by CEO Elon Musk, has famously developed reusable launch systems — a game-changer in terms of launch cost and efficiency. The newly launched Korea AeroSpace Administration last May also pledged to shift the country’s space development paradigm toward private-sector leadership.

The new contract is seen as Korea’s first real step in nurturing its own “Korean SpaceX.” Since 2010, KARI, a state-run research institute, has led Nuri’s development. With the successful third launch in May 2023 — which placed a satellite in orbit — Korea joined the ranks of the world’s top seven spacefaring nations.

The Nuri launch vehicle is undergoing assembly for the scheduled fourth launch on Nov. 4. [KOREA AEROSPACE ADMINISTRATION]

Hanwha Aerospace, now taking the baton, will oversee the fourth launch scheduled for November this year, as well as the fifth and sixth launches through 2027, assuming the lead role in the Nuri program.

“This agreement marks an important first step in opening a new era of space led by the private sector,” said Yoon Young-bin, administrator of the Korea AeroSpace Administration. “We will continue to provide institutional and financial support to ensure Korea’s space industry grows to world-class levels.”

Hanwha said it plans to establish a private-led space ecosystem based on the transferred technology and build a value chain spanning space transport services, satellite systems and satellite-based services.

“We will use the transfer to enhance the Nuri rocket’s technological and cost competitiveness, laying the groundwork for commercial launch services,” said Hanwha Aerospace CEO Son Jae-il.

Still, the company faces challenges in making the business commercially viable.

“The Nuri’s payload cost per kilogram is about 10 times that of SpaceX’s reusable Falcon 9,” a space industry insider said. “Generating private-sector demand and securing marketability will be major hurdles.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KANG KWANG-WOO [[email protected]]