South Korea transfers its government-built Nuri rocket to private company
Capitalism in space: South Korea’s space agency KARI has now completed the transfer of its government-built Nuri rocket to the private South Korea company Hanwha Aerospace.
The transfer includes a total of 16,050 technical documents. While some 2 trillion won ($1.45 billion) in public funds was invested in developing the Nuri rocket, the two sides agreed on a technology transfer fee of 24 billion won, based on direct research and development costs. The agreement comes nearly two years and 10 months after Hanwha Aerospace was selected as the preferred negotiator.
Under the contract, Hanwha Aerospace has secured exclusive rights to lead Nuri production until 2032, which coincides with the government’s target for the next-generation Korean launch vehicle. [emphasis mine]
The highlighted phrase is important, as it shows that this transfer is not completely shifting space development and ownership from the government to the private sector. Hanwha is going to operate the rocket, but it does not appear to own it, nor is it clear it will be allowed to market it to others for profit. Furthermore, it is not Hanwha but KARI that will be developing the next-generation rocket, using government funds.
The dominance of the South Korean government is also reflected in the cost, as the article notes that the Nuri rocket costs “per kilogram … about 10 times that of SpaceX’s reusable Falcon 9.” Like all governments, KARI was not focused on profit in developing Nuri, so it built a rocket uncompetitive in the present launch market.
Still, this deal indicates the South Korean government’s recognition that it must foster a robust private sector aerospace industry if it truly wishes to enter the space age. This deal is thus just a first step.
Capitalism in space: South Korea’s space agency KARI has now completed the transfer of its government-built Nuri rocket to the private South Korea company Hanwha Aerospace.
The transfer includes a total of 16,050 technical documents. While some 2 trillion won ($1.45 billion) in public funds was invested in developing the Nuri rocket, the two sides agreed on a technology transfer fee of 24 billion won, based on direct research and development costs. The agreement comes nearly two years and 10 months after Hanwha Aerospace was selected as the preferred negotiator.
Under the contract, Hanwha Aerospace has secured exclusive rights to lead Nuri production until 2032, which coincides with the government’s target for the next-generation Korean launch vehicle. [emphasis mine]
The highlighted phrase is important, as it shows that this transfer is not completely shifting space development and ownership from the government to the private sector. Hanwha is going to operate the rocket, but it does not appear to own it, nor is it clear it will be allowed to market it to others for profit. Furthermore, it is not Hanwha but KARI that will be developing the next-generation rocket, using government funds.
The dominance of the South Korean government is also reflected in the cost, as the article notes that the Nuri rocket costs “per kilogram … about 10 times that of SpaceX’s reusable Falcon 9.” Like all governments, KARI was not focused on profit in developing Nuri, so it built a rocket uncompetitive in the present launch market.
Still, this deal indicates the South Korean government’s recognition that it must foster a robust private sector aerospace industry if it truly wishes to enter the space age. This deal is thus just a first step.