Expectations for South Korea's private space industry are rising after the country's homegrown Nuri rocket succeeded in its fifth launch on Oct. 7. As private companies take a larger role in a space program long led by the government, attention is turning to startups trying to convert space technology into business opportunities. Their fields range from launch vehicles that carry small satellites into orbit, to artificial intelligence-based analysis of satellite imagery, to equipment for developing new drugs in space. Space is shifting from a field of national research and development into an industrial arena that generates revenue.
From Small Rockets to Satellite Cameras, Startups Build the Road to Space
The first market drawing attention in the private space industry is satellite launches and related equipment. Large satellites once stood at the center of space development, but demand is growing to launch multiple relatively inexpensive microsatellites to observe the Earth or build communications networks. Startups are now entering the market for small launch vehicles that place satellites in their desired orbits.
Innospace is a leading Korean private space company developing the Hanbit small satellite launch vehicle. It listed on the KOSDAQ in 2024 and is pursuing a commercial launch business using a launch site in Brazil. The company has faced technical setbacks, including the failure of its first commercial launch in December last year, but it is continuing to analyze the cause and prepare follow-up launches. Perigee Aerospace is also developing a small liquid-fueled launch vehicle as it prepares to enter the commercial launch market. Both companies aim to win overseas customers as well as government satellite launch orders.
Equipment carried aboard launch vehicles is another new market. CSO, a startup founded in 2023, develops high-resolution optical cameras for microsatellites. A camera made by the company was mounted on Daejeon Sat, a microsatellite carried on the fifth Nuri launch on Oct. 7. As satellites shrink, technology that delivers high image quality within limited space and weight is becoming more important.
Turning Satellite Photos Into Revenue: The Space Economy Built on AI and Data
Building satellites is not the only way to make money in space. A data industry that analyzes and sells satellite imagery is also growing. Satellite images are used to check crop conditions, monitor disasters such as wildfires and floods, and track the movement of ships and key facilities.
Telepix, a space AI startup, has developed technology that mounts AI on satellites to analyze images directly in orbit. Previously, large volumes of satellite imagery had to be sent to the ground before analysis, but the technology allows a satellite to select and transmit only the information needed. The company says the approach can cut data transmission volumes to as little as one-fiftieth of previous levels. In September, it signed a satellite AI service contract with Indian company SkyServe, moving into overseas commercial markets.
Nara Space Technology develops microsatellites for Earth observation and is building an imagery data business around them. It gained operating experience by putting its own satellite, Observer 1A, into orbit, and is expanding from satellite manufacturing into data applications. Lumir, listed on the KOSDAQ, develops synthetic aperture radar (SAR) satellites, which are relatively less affected by weather or day-night conditions. Unlike optical cameras, SAR observes the Earth's surface using radar waves, and the company is pursuing its own satellite network and data sales as new growth drivers.
Developing Drugs in Space and Exploring the Moon: An Industry Without Limits
Some companies are treating space itself as a new business stage. One prominent field is space pharmaceuticals. In the space environment, where the influence of gravity is far weaker than on Earth, processes such as the formation of protein crystals can differ. Efforts are underway to apply this to research on new drug candidates.
Space Linktech, a space pharmaceuticals startup, is conducting protein crystallization experiments needed for drug research aboard the International Space Station. On Oct. 13, it launched BEE-PC2, an AI-based next-generation space pharmaceutical experiment module, aboard a SpaceX rocket. The company aims to commercialize contract research services that let pharmaceutical and biotech companies at home and abroad order drug research conducted in a space environment. It also put a space pharmaceutical satellite, BEE-1012, aboard the fifth Nuri launch to verify its orbital experiment technology.
Unmanned Exploration Laboratory develops rovers that travel across the lunar surface to carry out exploration missions. Last year it signed a contract with Japanese space company ispace to carry payloads on a lunar lander, establishing a foothold overseas. The company expects that as lunar exploration missions increase, transporting and operating exploration equipment could develop into a new service market.
Other companies help keep satellites from colliding with space debris. SpaceMap develops technology that analyzes satellite orbits and the movement of space objects to predict collision risks. As the number of satellites grows, space traffic management and collision avoidance are emerging as new business areas.
Still, Korean space startups face considerable hurdles before they can secure stable earnings. Developing launch vehicles and satellites requires enormous upfront investment, and even after successful technology demonstrations, companies need real customers and long-term supply contracts to sustain their businesses. Reducing dependence on government research and development and public procurement, and proving their competitiveness in overseas commercial markets, are also challenges.