Hanwha Systems, Reasons for Entering the Space Internet Business

[Asia Economy Reporter Suyeon Woo] Hanwha Systems, a satellite antenna technology company, is making a full-scale entry into the space internet business through investment in the space company OneWeb. By entering the space internet business, which is expected to grow to 670 trillion won by 2040, Hanwha Group plans to accelerate its future growth engine in the space industry.

According to the industry on the 15th, Hanwha Systems, a defense and aerospace affiliate of Hanwha Group, recently signed an investment contract to purchase 250,000 shares (8.8% stake) of the UK satellite communication service provider OneWeb for $300 million (3.45 trillion won). With this investment, Hanwha Systems will join the OneWeb board alongside the UK government, global top three mobile carriers Bharti, global top three satellite communication companies Eutelsat, and Japan's SoftBank.

Founded in 2012, OneWeb is a 'space internet' company that provides ultra-high-speed internet worldwide by launching numerous satellites in low Earth orbit. In 2019, it succeeded in launching the world's first 'space internet' satellite and currently operates 254 low Earth orbit satellites through eight launches. It plans to launch an additional 34 satellites on the 19th and aims to complete the space internet network with 648 satellites next year to officially start global space internet services.

The reason Hanwha Systems decided on this investment is the unlimited potential of the 'space internet' business, which is expected to grow into a 670 trillion won market by 2040. Morgan Stanley forecasts the global space industry market size to reach $1.1 trillion (1,260 trillion won) by 2040, with the space internet market accounting for more than $580 billion (670 trillion won) of that.

From Hanwha Systems' perspective, which possesses satellite antenna technology, it is closely watching satellite and antenna manufacturing industries to activate the space internet market. For the space internet market to thrive, infrastructure construction through satellite launches is necessary, and Hanwha Systems is expected to create synergy with OneWeb in this area.

In the future, Hanwha Systems is expected to generate profits by participating in OneWeb’s satellite and antenna development and manufacturing, as well as satellite communication technology development. Recently, demand for small satellites (100?200 kg class) for low Earth orbit (500?2000 km) to build space internet networks has rapidly increased. Euroconsult, a space market research firm, predicts the small satellite market will grow to $51.3 billion (about 59 trillion won) over the next 10 years.

Kim Yeon-cheol, CEO of Hanwha Systems, emphasized, "We chose OneWeb because we judged that we could secure not only investment returns but also future profits through the expansion of the space business. It is also significant as the first Korean company to officially enter the global new space market."