(KAI) has decided to focus on developing future technologies, such as reusable rockets...){kind=link}
Korea Aerospace Industries (047810)(KAI) has decided to focus on developing future technologies, such as reusable rockets, instead of participating in the bidding for the lead company in the next-generation rocket development project. The decision is based on the belief that reusable rocket technology is essential for future commercial space services. So, they are choosing to skip the next-generation rocket and will focus on it.
According to industry sources, on the 22nd, KAI did not participate in the bidding for the “Company for Overall Management and Production of Next-Generation Rocket Development Project” conducted by the Korea Aerospace Research Institute the previous day.
The next-generation rocket development project, worth about $1.5 billion, aims to launch large satellites and explore space, such as the moon and Mars and will be carried out from this year until 2032.
The system integration company participates in concept and system design with the Aerospace Research Institute, carries out development tasks, and manages the companies participating in overall production. The system integration company can own most of the research and development results. It can also use related intellectual property rights first to accumulate technology capabilities.
Despite this, KAI decided not to participate. As a result, Hanwha Aerospace (012450) is likely to be selected as the business operator. However, KAI plans to participate in the production of next-generation rocket components.
KAI explained the decision as a “choice to establish its own space mobility business plan based on its Global Vision 2050 and focus its capabilities on entering the global space market.”
Under the goal of achieving $30 billion in sales and becoming the world’s 7th largest aerospace company by 2050, KAI plans to focus on developing reusable rockets, which have high commercial potential in space mobility. Reusable rockets are essential for future space businesses such as space travel and cargo transport. This is because it can significantly reduce the enormous launch costs and secure profitability.
The Nuri, successfully launched in 2022, has a cost of $30,000 per kilogram. However, the launch cost of SpaceX’s reusable Falcon 9 is known to be $2,000 per kilogram. SpaceX, which has overwhelming cost competitiveness, has a market share of over 60% in the space launch vehicle market.
KAI’s strategy is to concentrate on developing reusable rocket technology to catch up with SpaceX. To this end, it has expanded cooperation with external parties, such as signing a business agreement with Hyundai Rotem last October. Hyundai Rotem has secured core technology for propulsion systems, such as the construction of launch facilities and engine manufacturing for the KSR-3, the first liquid rocket in Korea, in 1998.
In October last year, KAI also signed a business agreement with the Saudi Space Agency (SSA) to build a mutual cooperation relationship in space. Saudi Arabia is doing space projects as part of “Vision 2030” to diversify its oil-dependent economic structure. KAI and SSA plan to cooperate in technology development and operation to pioneer the space market and joint commercialization.
A KAI official said, “Since it takes time to embark on it when the next-generation rocket project is already being progressed, Investing one step ahead helps secure future technology” and “Because we are behind the American technology, starting it now is not being fast.”
jupy@news1.kr