[21st Century Space War] ④ Could a Korean Version of SpaceX Emerge?

The Key to SpaceX's Success: 'Vertical Integration'
Hanwha Group Achieves Space Value Chain, a Candidate for 'Korean SpaceX'
Top 3 Telecom Companies Take Quick Steps to Expand Satellite Communication Services

Could a company like SpaceX emerge in Korea? Although there are analyses suggesting that Korea's launch vehicle technology lags behind by 20 years, it is encouraging that 80% of the budget invested in the development of Nuriho was spent on private companies. This indicates that Korea is building its own technological capabilities, raising expectations for the birth of a 'Korean version of SpaceX.'

A paradigm shift in the telecommunications industry is also anticipated. The reduction in costs for building low Earth orbit satellite infrastructure is expected to drive the development of the satellite industry, providing telecommunications companies with a golden opportunity to leap beyond the traditional wired and wireless communication era. Domestic space enterprises and telecommunications companies are boldly investing to meet these changes.

Nuriho's Leading Player 'Hanwha Group'

Experts cite the 'vertical integration' strategy as the reason why SpaceX, with 20 years of experience, has succeeded. Vertical integration refers to a company organizing the supply chain necessary for the production and sales of its products through affiliated companies in each sector. SpaceX built its supply chain through rocket and space station development and expanded into the satellite communication business, establishing an independent space value chain.

In Korea, Hanwha Group is adopting a vertical integration strategy similar to SpaceX. In March last year, Hanwha Group launched 'Space Hub' to organically combine core space industry technologies scattered across its affiliates. Space Hub is a space business consortium involving various affiliates, aiming to complete the value chain including satellite manufacturing, launch transportation, satellite services, space development, and exploration.

Companies within Space Hub each have clear roles. Hanwha Aerospace, Hanwha Group's defense intermediate holding company, is responsible for launch vehicle engines. Hanwha Systems and Satrec-I, subsidiaries of Hanwha Aerospace, handle satellite manufacturing and ground system production and operation. Solid fuel boosters are primarily developed by Hanwha Corporation, and launch pads are developed by Hanwha Defense.

Hanwha Aerospace, the core pillar of Space Hub, will oversee the remaining three Nuriho productions and launches until 2027 after the third Nuriho launch. Hanwha Aerospace has directly manufactured all six engines, including five 75-ton liquid engines, the heart of Nuriho. They produced engine components such as turbo pumps and valves and assembled the entire engine. The 75-ton engine was developed with Korea's independent technology and is the first space launch vehicle engine whose performance has been verified through three launches. The Korea Aerospace Research Institute, which was the control tower for the existing Nuriho development, will participate jointly but transfer launch and system integration technology to Hanwha Aerospace.

Hanwha Group is also securing domestic launch bases. They plan to build a launch vehicle cluster in Suncheon and Goheung, Jeollanam-do. With an investment of 50 billion KRW and a completion target of 2025, they will construct a 23,140㎡ space launch vehicle assembly plant in Suncheon. When the launch vehicle cluster site in Goheung, Jeollanam-do is established, manufacturing facilities for core launch vehicle components will also be built.

A Hanwha Aerospace official stated, "We will successfully lead the remaining three launches to accumulate know-how such as practical satellite orbit insertion technology," adding, "We plan to pursue various commercial space businesses in the future, including private satellites, spacecraft, and space transport vehicles."

Turning attention to the venture and startup sector, Innospace stands out. Founded in 2017, this company is Korea's first private space launch vehicle startup. It was the first in the world to demonstrate the potential of hybrid engines using solid fuel and liquid oxidizers, entering the space market competition.

Hybrid engines are heavy but have the advantage of adjustable thrust through a motor pump and a simple structure that allows for low-cost production. Innospace estimates that it can launch a 150kg satellite into low Earth orbit at a cost of $28,000 per kilogram (approximately 37 million KRW). The launch cost of its competitor, the U.S. private space company Rocket Lab, ranges from $33,000 to $38,000. An Innospace representative said, "We are already developing technology to recover and reuse rockets, with testing starting at the end of this year and completion expected in 2025."

Telecom Giants Prepare for Paradigm Shift in Communications

The reason companies worldwide are entering the space industry is the expectation that it will become a future growth engine not only for individual companies but also at the national level.

Particularly promising is the satellite communication sector. Last year, investment bank Morgan Stanley predicted rapid growth in the communication segment within the overall satellite industry. Morgan Stanley projected that the share of satellite communication in the global satellite industry would increase from 15% in 2018 to 53% by 2040. The total industry size is estimated to reach $580 billion (765 trillion KRW).

Satellite-based communication and internet network services are considered cost-competitive. Existing internet networks mostly rely on wired infrastructure based on fiber optic cables, which require frequent maintenance and incur significant costs. In contrast, space internet networks using satellites have high launch costs but offer the advantage of not needing network maintenance as long as the satellites themselves remain intact.

Domestic telecom companies SK Telecom, KT, and LG Uplus are also preparing for a long-term transition to satellite communication. KT's satellite communication subsidiary KT SAT is building a low Earth orbit satellite communication network based on four broadcasting and communication satellites, including Mugunghwa-7, and its own developed satellite-5G data communication interworking technology called 'Hybrid Router.'

LG Uplus has collaborated with the Korea Advanced Institute of Science and Technology (KAIST) to research optimization of low Earth orbit satellite networks using the quantum computer D-Wave. SK Telecom's subsidiary SK Telink leases overseas satellites such as Inmarsat to provide satellite communication services and is also developing low Earth orbit satellite communication technology.

A telecommunications industry official said, "Low Earth orbit satellite services have high utility value, providing ultra-high-speed communication in areas where existing networks are hard to access," adding, "Currently, satellite communication services are mainly provided on a B2B (business-to-business) basis, but as technology advances and the private sector can control numerous satellites, there will come a time when services will be easily available to general consumers."