Could space become Korea’s next powerhouse industry after chips?

Korea's space ambitions no longer seem light-years away. Space is poised to become the country's next big bet after chips, said Oh Tae-seog, chief of the country's state space agency.

A lunar lander is now slated to be launched in four years, while a Korean version of Starlink is expected to be operational within a decade.

The infrastructure underpinning that future space economy — the so-called space highway — will be built around the principle of launching Korean satellites on Korean rockets.

However, not that long ago, Korea's leadership in space felt as distant as the stars it sought to reach.

After the successful second launch of the home-grown Nuri rocket in June 2022, the Korean government declared its ambition to become one of the world’s seven leading space powers.

The declaration rang hollow at the time: Back then, Korea did not even have a space agency. Even tiny Luxembourg, home to just 690,000 people, already had one. And while SpaceX ushered in the private-sector-led "New Space" era, Korea was still years away from building even the basic foundations of a commercial space industry.

But since then, space has become much more of a national priority. On July 3, the fifth National Space Committee convened at Gyeongsang National University in Jinju, South Gyeongsang. President Lee Jae Myung attended as committee chair, while the Korea AeroSpace Administration (KASA) unveiled a national strategy to foster the industry as a future growth engine.

Hanwha Group Vice Chairman Kim Dong-kwan and senior executives from Hyundai Motor and Samsung Electronics also attended the meeting.

The committee itself was elevated in January 2024 when its chairmanship was transferred from the prime minister to the president, and KASA was officially launched four months later, in May that year.

The JoongAng Ilbo sat down with KASA Administrator Oh to assess the current state of Korea's space program and its future policy direction in Sacheon, South Gyeongsang, on July 8. Oh is KASA's second chief since the agency was founded.

Below are excerpts from the interview, edited for length and clarity.

Q. Korea's space ambitions seem to be accelerating faster than ever. What's driving the shift?

A. Major space powers such as the United States and China are speeding up plans for lunar exploration and moon bases, while private companies around the world are racing to secure a foothold in the emerging lunar economy.

We can no longer afford to remain on the sidelines. That is why we decided to move up the launch of a public-private lunar lander by two years to 2030. We intend to carry the private-sector capabilities developed through the 2030 mission into the development of the national lunar lander project in 2032. It aims to secure both technological independence and a strategic foothold in the global space supply chain.

The original plan was to land on the moon in 2032 using a next-generation launch vehicle. Doesn't bringing the lunar landing forward risk delaying development of that rocket?

No. We will pursue both tracks simultaneously without any delays caused by budget constraints. The Nuri rocket program will continue its scheduled launches while development of a reusable next-generation launch vehicle proceeds in parallel. The 700-kilogram (1,543-pound) lunar lander planned for 2030 will be developed jointly by the government and private companies. It will serve as a crucial stepping stone toward the 1.8-ton national lunar lander scheduled for 2032. We also plan to maximize efficiency by overhauling our development process. Beyond continued upgrades to Nuri, we aim to commercialize reusable first-stage launch vehicles after the mid-2030s and establish a launch system capable of more than 10 launches a year.

Korea successfully launched its first homegrown rocket only four years ago. Isn't a reusable launch vehicle a difficult target to achieve?

There is no question that developing reusable launch vehicles are technically demanding. But they are inevitable if we want to remain competitive in the global launch market. Our goal is to commercialize reusable first-stage technology after the mid-2030s and establish a system capable of more than 10 launches annually. To achieve that, we intend to fundamentally overhaul the traditional state-led development model by working much more closely with private companies.

We will ensure that funding remains focused on developing the next-generation launch vehicle and securing reusable technologies in parallel.

Could you elaborate on the plan for a Korean version of Starlink?

The roadmap calls for domestic private companies to build an independent low-Earth orbit (LEO) satellite communications network by 2035. Our first goal is to establish the industrial ecosystem with production capacity to mass-produce and launch satellites by 2030. We then plan to verify satellite operations in orbit by 2032 before completing the network in 2035.

LEO satellite communications will become essential infrastructure for autonomous vehicles, urban air mobility and maritime communications. Securing a leading position in this market is critical not only for future industries but also for national security and communications sovereignty.

What is your vision behind the proposed space data center?

The space data center is another key piece of infrastructure for the private-sector-led space economy. As part of our “K-Moonshot" initiative, we plan to build an AI-powered space data center capable of analyzing and utilizing the enormous volumes of data transmitted by satellites and lunar probes in real time. It is much more than a data storage facility. It will provide a platform where AI, communications and other emerging industries can create new businesses in space.

This is not simply about accelerating timelines. It is a concrete strategy to maximize the commercial value of space data and establish an early lead in global markets alongside projects such as the 2030 lunar lander.

The July 3 strategy calls for launching Korean satellites on Korean-made rockets. Is that practical when K-Starlink and the space data center alone will require putting so many satellites into orbit?

We are working to ensure that it is backed by concrete action, not just words, through institutional support and the development of a robust industrial ecosystem.

Of course, relying exclusively on domestic launch vehicles from the outset would present practical challenges given the sheer number of satellites these projects require. But formalizing this principle provides Korean space companies with predictable public demand and helps establish a foundation for self-reliance. Even if international partnerships remain necessary in the early stages, our long-term goal is to prioritize Korean launch vehicles and launch sites to strengthen space security and achieve full technological independence.

Funding will be a major challenge. Shouldn't large-scale private investment, similar to the semiconductor industry, accompany these plans?

I completely agree. Government funding alone will not be enough. As in the semiconductor industry, public-private partnerships that attract substantial private investment will be essential. The government plans to establish matching funds and provide seed funding to help absorb early-stage risks. We will also introduce strong incentives — including regulatory reforms and tax benefits — to encourage companies to invest voluntarily in the space industry. Projects such as K-Starlink and the space data center can only become reality if private capital and innovation play a central role.

The Ministry of National Defense is also developing solid-fuel launch vehicles for satellites. How closely are you coordinating?

Close coordination with the Defense Ministry and the Agency for Defense Development is essential. We already hold regular consultations to coordinate launch schedules and orbital planning so that national security and civilian space development operate in synergy.

In time, solid-fuel launch technology could also be transferred to the private sector. It will, in turn, strengthen the capabilities and competitiveness of Korea's domestic launch industry.

Our role is to ensure that defense-led solid-fuel launch vehicles and KASA’s liquid-fueled next-generation reusable launch vehicles develop in a complementary manner in a pangovernmental framework.

Korea has seen a growing number of space startups over the past decade. What do they need most to succeed?

It is encouraging to see space startups carving out a presence across a wide range of fields, from launch vehicles and satellite manufacturing to space services. They helped lay the foundations of a homegrown space ecosystem.

But we also have to acknowledge that most of them still depend heavily on government R&D projects and public-sector demand. It is time to shift toward a genuinely private-sector-led space economy.

We, as the government, will accelerate technology transfers, provide matching funds that share early risks and expand incentives so startups can use the domestic public market as a springboard to compete globally.

As launch demand grows, won't the current launch infrastructure be insufficient?

Launch sites are in short supply not only in Korea but around the world. We are building a commercial launch site next to the Naro Space Center [in South Jeolla], with completion targeted for the second half of next year.

On June 22, we also launched a public call for proposals to select the site for a second national space center. South Jeolla, South Gyeongsang and Jeju Island are all realistic candidates. Interest has been strong, and we have been holding briefing sessions with local governments. Applications will be accepted through Aug. 6, with the final site expected to be announced in October.

Korea’s space program should avoid becoming isolated. Shouldn't the country play a more active role in the U.S.-led Artemis program?

Participation in international partnerships such as Artemis is one of our core strategies, and we certainly are not neglecting it. Our recent announcements have focused more heavily on building independent capabilities in launch vehicles and satellites, which may have made international cooperation less visible. In reality, we are pursuing both tracks simultaneously. Projects such as the 2030 public-private lunar lander and the space data center are also intended to strengthen Korea’s contribution and bargaining power within future international lunar exploration initiatives. A U.S. delegation from NASA is expected to visit Seoul soon for related discussions.

Can space become Korea’s next major growth engine?

Absolutely. Space is no longer just about science and technology. It has the potential to become one of the country's most important industries in the future. AI-powered space data centers and low-Earth orbit manufacturing platforms could enable explosive growth in sectors, ranging from communications and pharmaceuticals to advanced materials.

Taking an early lead in LEO satellite communications, which will underpin autonomous driving and urban air mobility, will also shape the country's long-term competitiveness. If we successfully combine early government investment with private-sector capital, the space industry could become Korea’s next major growth engine after semiconductors.

BY CHOI JOON-HO [[email protected]]