Company K Selected as Final Manager of NewSpace Fund... Leading Aerospace VC Emerges

Ministry of Science and ICT Leads NewSpace Fund Final GP Selection
Contec, Innospace and Others with IPO Experience

Company K Partners (Company K) has once again demonstrated its presence as a venture capital (VC) investor in the 'aerospace industry.' Having previously led the initial public offerings (IPOs) of space-related startups it invested in, Company K was also selected this year as the general partner (GP) for a government-led fund supporting space-related startups.

According to Korea Venture Investment Corp. (KVIC) on the 25th, Company K was finally selected as the GP for the NewSpace Fund led by the Ministry of Science and ICT (MSIT) the day before. Accordingly, Company K plans to raise a fund with a total committed amount of over 10 billion KRW within three months. The fund will include 5 billion KRW from the Korea Fund of Funds (MSIT account) and additional capital from private investors.

This fund will invest at least 60% of the total committed amount in small and venture companies related to the space industry and associated industries. Investment targets include businesses involved in the manufacturing and operation of space equipment such as launch vehicles and satellites, as well as the development and supply of products and services utilizing space-related information. At least 20% of the total committed amount must be invested in companies located in regional space industry clusters.

This is the second year that a NewSpace-related Korea Fund of Funds has been established, following last year. The number of teams applying for the GP position in the fund's investment project has doubled. With the recent establishment of the Space Agency, private-led space industry development has accelerated, and the government has announced plans to raise NewSpace-related funds totaling over 50 billion KRW by 2027.

Company K secured the GP qualification for the NewSpace Fund, beating five other teams including co-managers. Initially, six teams applied for this investment project: ▲Company K ▲Gaia Venture Partners and Blue Bus Investment ▲Winvest Venture Investment ▲UTC Investment ▲Korea Value Investment and Korea Asset Investment Securities ▲Korea Asset Capital. Among them, three teams?Company K, Korea Value Investment and Korea Asset Investment Securities, and Korea Asset Capital?passed the document screening.

Company K has actively invested in the space industry from early on. To date, it has invested in various aerospace companies including ▲Contec ▲Innospace ▲Lumir ▲Space Lintec ▲Step Lab ▲C&G Microwave ▲CSO ▲Made ▲Nearslab ▲Narma.

Among these, Contec, a satellite data specialist, and Innospace, a space launch vehicle developer, entered the KOSDAQ market in November last year and this month, respectively. Contec started trading at an initial public offering price of 22,500 KRW, and Innospace at 43,300 KRW. However, their current stock prices have dropped by about 40% compared to their IPO prices.

Lumir, a developer of microsatellites, is also aiming for a KOSDAQ listing in the second half of this year. Lumir passed the preliminary review for listing by the Korea Exchange on the 12th and has appointed NH Investment & Securities as the lead underwriter, planning to submit its securities registration statement soon. Lumir's LUMIR-T1 (6U unit) was selected last year as a secondary payload satellite for the third Nuri rocket launch.