Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Hanwha on mission to private space era with Nuri rocket legacy
A Nuri rocket lifts off at Naro Space Center in South Jeolla Province, May 25, 2023. Courtesy of Korea Aerospace Research Institute
By Nam Hyun-woo
Korea strives to grow space industry at critical juncture
The technology behind Korea’s domestically developed space launch vehicle Nuri was transferred to Hanwha Aerospace on Friday, marking Korea’s first transfer of full-cycle rocket technology to a private company.
The transfer also signals that Korea’s aerospace ecosystem is entering a new phase led by the private sector, similar to how companies like SpaceX in the United States and Honda in Japan are spearheading related technologies with the goal of commercialization.
However, major challenges remain before Korea’s space ecosystem can be on par with those in the United States, including the need to ensure launch vehicle feasibility, limited demand for launches and the lack of reusable rocket technology.
According to the Korea Aerospace Research Institute (KARI), it signed a contract of transferring technologies related to the Nuri rocket to Hanwha Aerospace for 24 billion won ($17.25 million).
The transferred technologies include all aspects of launch vehicle development — from design to manufacture. A total of 16,050 related technical documents were handed over, as part of the transfer.
Through the agreement, Hanwha Aerospace has secured a license to directly manufacture and launch Nuri rockets through 2032.
From left, Korea Aerospace Research Institute (KARI) President Lee Sang-cheol, Korea AeroSpace Administration Administrator Yoon Young-bin and Hanwha Aerospace CEO Son Jae-il pose during a signing ceremony for transferring technologies for the Nuri space launch vehicle at KARI headquarters in Daejeon, Friday. Courtesy of KARI
The Nuri rocket project, also called KSLV-II, began development in 2010, with around 2 trillion won invested until its first successful launch.
After a successful first test vehicle launch involving a single-stage version in 2018, the first full launch in October 2021 cleared the atmosphere but failed to deploy its payload into orbit. The second launch in June 2022 successfully placed test satellites in orbit, marking Korea’s first successful orbital launch based on its own technologies.
In May 2023, it completed its first operational mission by delivering eight operational satellites into space. Korea became the seventh nation in the world to develop a rocket capable of placing operational satellites into orbit.
The fourth launch is scheduled for November this year, with the fifth coming in mid-2026 and the sixth in mid-2027. From the fourth launch, Hanwha Aerospace will oversee production and launch operations, while the government and KARI will play supervisory and advisory roles.
Engineers inspect a Nuri space rocket engine at the Hanwha Aerospace plant in Changwon, South Gyeongsang Province, in this undated photo. Courtesy of Hanwha AerospaceChat
The Nuri rocket is the centerpiece of Korea’s aerospace technologies, developed with the involvement of more than 300 domestic companies and a localization rate of 95 percent. The three-stage rocket uses six engines, and Hanwha Aerospace has so far produced 52, including those to be used in the upcoming fourth launch.
The transfer came three years after the government named Hanwha Aerospace as the preferred negotiation partner, in line with its goal of fostering the domestic space industry by transferring core technologies to the private sector.
Despite the selection, the transfer was delayed due to disagreements between KARI and Hanwha Aerospace over how to calculate the transfer fee — whether to base the fee on the total project cost of the Nuri program or only on the value of the specific technologies being transferred.
Ultimately, the fee was determined as 24 billion won, as the two sides agreed to calculate the fee based on the research and design costs related directly to the technologies subject to transfer.
A Falcon 9 rocket carrying the Axiom-4 crew of four astronauts lifts off from Kennedy Space Center Launch Complex 39A in Cape Canaveral, Fla., June 25, on a mission to the International Space Station. Reuters-Yonhap
New space
Over 30 years after Korea first launched a space rocket in 1993, the transfer is expected to usher in the country’s entry into the so-called "New Space" era, in which private companies take the lead in space development.
In contrast to the "Old Space" era, which was dominated by government agencies with heavy budgets and limited competition, the New Space era marks a shift toward a private sector-driven model that focuses on space services through technological innovation, cost reduction and expanded private investment.
Companies including SpaceX, Blue Origin and OneWeb are leading this trend with low-cost mass production, reusable rockets and commercial satellite ventures — significantly lowering the barrier to space and accelerating the growth of the global space industry.
According to Morgan Stanley, the global space industry is projected to nearly double in size, from $590 billion in 2030 to $1.1 trillion by 2040. Market observers expect the private sector will play a key role in driving that growth through satellite launches, manufacturing, services and operations.
Though the transfer marks the beginning of the New Space era, industry officials note that Hanwha Aerospace has now entered a competitive market environment and will need to prioritize profitability.
Korea's Nuri space rocket blasts off from Naro Space Center in Goheung, South Jeolla Province, May 25, 2023. Courtesy of Korea Aerospace Research Institute
As SpaceX’s Falcon 9 has achieved reusability, reports estimate its internal launch cost for Starlink missions to be as low as $28 million, translating to between $1,600 and $2,000 per kilogram. SpaceX’s Rideshare Program currently notes that for missions to sun-synchronous orbit (SSO), SpaceX charges $325,000 for payloads up to 50 kilograms, translating to $6,500 per kilogram.
In comparison, launching the Nuri reportedly costs around $24,000 per kilogram. While the Nuri is currently capable of delivering up to 3,300 kilograms of payload to low Earth orbit, Falcon 9 can carry as much as 17,500 kilograms.
“It will take significant effort in the private sector to meet market demand and improve cost efficiency,” a domestic space industry official said. “The domestic space industry has yet to reach maturity, how Korea structures its follow-up programs will be a key factor in determining long-term growth potential.”
Industry officials point out that the lack of a confirmed launch schedule beyond the sixth Nuri launch in 2027 is a key reason many potential players remain hesitant to enter the space industry.
Currently, companies supplying components for the Nuri have already completed their deliveries, and many are concerned about a production gap because there will be no government-led launches until the next-generation launch vehicle (KSLV-III) in 2030.
According to a recent survey by KARI, 97.4 percent of 115 companies participating in the Nuri rocket advancement program responded that their Nuri-related production will dry up by the first half of 2026.
During a Presidential Committee on Policy Planning meeting with domestic space industry officials on July 24, participants noted that stronger policy support is needed for the industry’s sustainability.
“Given the absence of confirmed launch plans after the sixth mission in 2027, the government should run programs to enhance the Nuri's performance and diversifying its mission profiles, such as launching rockets into various orbits, in order to remain competitive in the New Space era” the participants said, according to the committee.
They also noted that securing sufficient launch demand will be crucial to lowering Korea’s relatively high launch costs compared to other countries.
To revitalize the launch vehicle market, some participants suggested that domestic rocket companies should be given priority access to public-sector launch contracts, the committee said.