The journey of Nuri
About 300 companies including Hanwha, KAI, and Hyundai Heavy Industries participated in the project for Korea’s first homegrown space launch vehicle “Nuri” (KSLV-II) blasted off from the Naro Space Center on October 21. It successfully achieved a significant achievement of reaching an altitude of 700 kilometers in 16 minutes but failed to place the mock payload into the final intended orbit.
Hanwha said, “The Nuri is a process created by the long-term vision of Korea and the unwavering will for space. We will continue to contribute to vitalizing the Korean space industry ecosystem in the future based on our accumulated technology”.
An official from Hyundai said, “recognizing in advance the importance of the space industry, which has infinite potential for the future, in this project, we developed and built related test facilities with domestic technology and improved our technology. We will strengthen our R&D capabilities in the 4th industrial revolution technology to become a leading company in the future core technologies".
A total of around 300 companies from large companies as mentioned above to medium-sized companies in the space materials, parts, and equipment sectors participated in the Nuri project. 80% of the total project cost of the Nuri – 1.5 trillion won was invested by participating companies. In the report after the launching of Nuri, the National Assembly Research Service said, “in the new space era, where competition from countries around the world is fierce to preoccupy the space market, private companies must secure competitiveness not to miss the golden time”. Hence, “it is time to take active efforts to reform the legal system related to the aerospace industry,” he said.
“Aerospace stocks, it’s time to foresee and invest”
Even the Nuri space rocket was launched into space, space-related stocks are falling. However, there are a lot of advices from securities industry experts that it is time to take interest in the Korean space industry and consider the long-term investment. The fact that the value chain has become more concrete through the launch of the Nuri is a positive change for investors. This is because it is possible to identify the real beneficiaries. Korea Aerospace Industries was in charge of assembling the Nuri rocket collaborating with SpaceX for launch. Hanwha Aerospace led the localization of major engine technologies collaborating with subsidiaries Setrec I and Hanwha Systems. LIG Nex1 plans to conduct business such as satellite transceiver and Korean-style satellite navigation system (KPS).
There are also expectations for structural growth in the space industry. According to KB Securities, the global small satellite market is expected of 20.5% compound annual growth rate until 2025. Yoon Chang-bae, a researcher at KB Securities, said, "Until now, the space industry has been only an area of expectation, but this year, businesses that were close to mankind's dream, such as tourism and micro-satellite, are becoming a reality. You will have to adjust,” and "These are companies that have increased overseas-related exports and can continue to win government projects. KB Securities suggested that Intellian Tech, Setrec-I, AP Satellite, and Genoco deserve attention." he advised.
Reference: https://m.mk.co.kr/news/business/view/2021/10/1000092/
https://www.hankyung.com/finance/article/202110226607i
