South Korea military begins project to develop a methane-fueled rocket engine

The South Korean defense department has awarded a consortium of Korean aerospace companies a contract to develop a methane-fueled engine that can be used in reusable rockets.

According to the space industry, a consortium led by Hyundai Rotem and Korean Air was selected on the 9th as the preferred negotiator for a 35-ton methane engine technology development project overseen by the Agency for Defense Development (ADD) under the Defense Acquisition Program Administration (DAPA). A formal agreement will be signed in November, initiating full-scale research and development (R&D). The project, budgeted at approximately 49.1 billion Korean won [$35 million], will run until 2030.

It appears there has been a turf war between the military and South Korea’s newly formed space agency, KASA. Originally KASA had planned to develop this engine, but apparently the military’s proposal won out. KASA now says it will collaborate with the ADD, but the project’s budget now goes to the military.

South Korea’s space agency requests big 15% budget increase

South Korea’s space agency KASA today submitted its proposed budget for 2026 that included a 15% budget increase which would bring its funding to just under $8 billion.

According to the national space agency, the proposed funds will be concentrated in six major areas, which include the strengthening of space transportation capacity and new technology acquisition, advancing satellite-based communications, navigation and observation, as well as fostering future space industries through exploration.

The largest requested increases would be for developing new satellite constellations and rockets.

When the South Korean government established this agency in in 2024, it said its goal was to foster private enterprise. The agency itself repeated that assertion in January 2025 when it announced its long term plans. In both cases, however, I sensed a lack of sincerity in these assertions. The government wanted wanted to help build a prosperous aerospace industry, but it clearly wanted to do so with it in control.

Today’s budget request again reinforces my suspicions. KASA might want to encourage a commercial space industry, but it remains unclear whether it will let the private sector develop the satellites and rockets independently, or pay for the development while insisting it owns and controls everything.

Based on past history at NASA, my instincts say KASA will use this big budget to build an empire for its managers. Stay tuned to see if my instincts are correct.

South Korea to push for a lunar base and Mars missions by 2045

South Korea’s new space agency today announced a long term space exploration road map that hopes to have the nation establish by 2045 a small base on the Moon as well as a Mars orbiter and lander.

The Korea Aerospace Administration (KASA) categorizes the exploration areas into Earth, the Moon, the heliosphere, and deep space, dividing them into five major programs: low orbit and microgravity exploration, lunar exploration, solar and space science exploration, planetary system exploration, and astrophysical exploration. The roadmap presents scientific missions for each program and engineering tasks to realize them.

When South Korea established this space agency in 2024, its chief emphasized the need to encourage private enterprise. I however had doubts, noting:

If KASA maintains this approach, then South Korea’s future as a space power is bright. If instead KASA moves to control all space development, including the design and ownership of its rockets and spacecraft, then that program will be stifled, as America’s was by NASA for forty years after the 1960s space race.

In January 2025 that space agency announced policies that it said would encourage the private sector, but in reviewing the language of those policies I concluded it sounded more like a power-play by that agency to run everything.

KASA’s new road map today unfortunately confirms that analysis. Over the next two decades South Korea will have a government-controlled “space program,” not a competitive space industry.

South Korea establishes its own version of NASA

The South Korean government today announced the establishment of its own version of NASA, dubbed the Korea AeroSpace Administration (KASA), with what appears to be a focus on establishing a long term space program and using this to foster an aerospace commercial sector.

KASA was established under a special law passed by the National Assembly in January to unify government organizations in charge of space policy and projects. Based in Sacheon, South Gyeongsang Province, KASA has an annual budget of 758.9 billion won ($556 million) this year. The agency currently has around 110 employees and will eventually have a total of 293.

In March, the government established the 2024 Space Development Promotion Action Plan and set five major missions — including space exploration, space transportation, space industry, space security and space science.

In line with the government’s policy, KASA will establish a roadmap for Korea’s space exploration and plans to promote reusable launch vehicles, development of the country’s own global positioning system (GPS) and a lunar lander program. In particular, it plans to develop a lunar lander with a goal of landing on the moon in 2032, and to design and develop engines to enter the commercial launch service market.

A second South Korea news report quotes the head of this new agency as follows:

“Until now, the country’s space development projects have been led by the government,” Yoon Young-bin, KASA’s inaugural chief, said earlier. “The most important role of the space agency will be supporting the private sector to lead space development.”

He pointed out that the world’s space industry is moving toward the so-called “new space” era, where private companies are actively leading innovation in space technologies with more economic feasibility. “The global paradigm is shifting,” Yoon said, noting that top space companies, such as SpaceX, have developed reusable space rockets and launched a group of small satellites with capabilities similar to medium- and large-sized satellites.

If KASA maintains this approach, then South Korea’s future as a space power is bright. If instead KASA moves to control all space development, including the design and ownership of its rockets and spacecraft, then that program will be stifled, as America’s was by NASA for forty years after the 1960s space race.