[Company Exploration] Manufacturing 'Performance Verification Satellite' Loaded on Nuriho
Playing a Key Role in Domestic Space Development Projects
Expecting Business Expansion Including Overseas Market Entry
Interest in the space industry has surged like never before following the successful second launch of Nuri, Korea's independently developed Korean-type launch vehicle. Through the Nuri launch, Korea has secured independent space transportation capabilities. In terms of the ability to launch practical satellites weighing over 1 ton, Korea has risen to seventh place worldwide. Rapid growth of the domestic space industry is expected in the future. The Ministry of Science and ICT and the Korea Aerospace Research Institute plan to conduct four additional repeated launches by 2027 to improve the reliability of Nuri. As a mid- to long-term task, the development of a reusable high-performance liquid rocket with a 100-ton class engine thrust is also being pursued. From the perspective of export companies, the success of the Nuri launch has secured a favorable position in overseas exports. Asia Economy analyzed AP Satellite and Zenoco, representative companies related to Nuri.
[Asia Economy Reporter Park Soyeon] AP Satellite started as a satellite venture company and is responsible for a major part of Korea's space development projects, developing multipurpose practical satellites, military satellites, and even lunar orbiters. It manufactured the performance verification satellite that was onboard the recent Nuri launch. The performance verification satellite is a small but fully operational artificial satellite. It measures 90 cm in width, length, and height, and weighs 162 kg. Over the next two years, it will orbit the Earth 14.6 times daily at a speed of 7.9 km/s, which is seven times faster than a bullet, carrying out its mission. The satellite's most important mission is to verify whether Nuri can place a 1.5-ton satellite into orbit.
AP Satellite's business areas are mainly divided into satellite manufacturing and satellite services. The satellite manufacturing sector involves system design of the satellite body and development of onboard equipment such as large-capacity storage devices and standard onboard computers for satellites. The satellite services sector manufactures communication equipment using satellites, including satellite phones and communication chips. Additionally, it operates ground support equipment for satellites and lunar exploration projects.
Ryu Jang-soo, chairman of AP Satellite, is recognized as a first-generation pioneer in Korea's aerospace industry. Born in 1952, Chairman Ryu graduated from Seoul National University with a degree in mechanical engineering and worked at the Agency for Defense Development, where he was involved in military missile development. He later earned a doctorate in rocket propulsion research from KAIST. From 1989 to 2000, he worked at the Korea Aerospace Research Institute (KARI), contributing to Korea's space industry milestones.
In June 2000, Chairman Ryu founded AP Satellite. He had served as the general manager responsible for developing Korea's first practical satellite, Arirang-1, at KARI. Based on this experience, he established the satellite venture company. At that time, due to the deteriorating management of Hyundai Electronics (now SK Hynix), researchers from the satellite business division who had lost their positions joined forces to establish the company with a capital of 50 million won.
The manpower of Chairman Ryu and the research team, who were responsible for national satellite development, is recognized both inside and outside the industry. This is the driving force behind AP Satellite's rapid growth and a key factor leading Korea's space development projects. Based on this, although a startup, AP Satellite was able to sign a contract with KT in November 2000 for the development, production, and sales of satellite directional services. In 2001, it signed a research contract with the Ministry of Science and Technology for developing satellite receivers, and the Ministry of Commerce, Industry and Energy selected it as the lead organization for developing core ground components for artificial satellites.
With successful outcomes in the domestic space industry and the expansion of the global space market, AP Satellite is on a growth trajectory. Expectations for business expansion, including overseas market entry, are rising following the success of the Nuri launch. An AP Satellite official said, "Beyond securing many domestic satellite orders, we have secured a favorable position in competition for satellite orders in Southeast Asia and the Middle East markets." The global space industry is projected to grow from $371 billion (approximately 423 trillion won) in 2020 to $1.1 trillion (approximately 1,286 trillion won) by 2040.
In particular, with the sharp increase in satellite demand, AP Satellite's business structure is also changing. Beyond the satellite communication business, which was the foundation for its rapid establishment as a satellite venture company, the proportion of satellite bus-related business is gradually increasing. In 2020, satellite communication terminal sales accounted for 50%, and artificial satellite and component development sales accounted for 50%. As of the first quarter of 2022, satellite communication terminals accounted for 20%, and artificial satellites accounted for 77%, indicating a higher proportion of satellite bus business.
AP Satellite has recorded steady sales of around 40 billion won over the past four years. The rapid growth of the satellite bus sector and steady expansion of exports in the satellite communication business have driven sales. As of the end of 2021, the debt ratio was 37.09%, with interest-bearing debt at a minimal level of 200 to 300 million won. An AP Satellite official said, "The satellite industry market has more than doubled compared to 2015, and we believe it can grow at least twice more within the next five years. We will leverage our technological capabilities to secure a leading position in the global market."
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