On the 10th, at the Korea Aerospace Industries (KAI) space center electromagnetic compatibility test chamber in Sacheon, South Gyeongsang Province. When the heavy steel door, thicker than an adult's palm, was opened, a copper-colored, inverted-trapezoid satellite came into view inside a space packed with sharp sound-absorbing material on all sides. This satellite, small but hefty—about half-embraced with an adult's two arms—was undergoing final checks.
The research team runs the satellite here as it would in space to verify that the numerous electronic devices inside it operate properly without mutual interference. In the process, they emit powerful radar signals with a range of hundreds of kilometers, and the absorbent material is densely installed on all sides to prevent the signals from bouncing off the walls and returning to the satellite.
A KAI official said, "We finished this test in just 10 business days and built a system that needs only 10 months from assembly to final testing," and called it "a high-efficiency satellite production infrastructure that eliminated bottlenecks between satellite assembly and testing."
The global defense and space industry is betting on microsatellites. A "dense space mesh" of dozens or hundreds of constellation satellites, enabled by low-cost, fast production, is emerging as a key security advantage.
Unlike medium-to-large satellites that required massive expense and time, the lower entry barrier is expanding private demand, accelerating market growth. KAI plans to introduce microsatellites to the global market that combine price competitiveness with high performance by applying the know-how it has accumulated with medium-to-large satellites.
◇ Medium-to-large satellite DNA implanted… slimmed down while securing high performance
KAI's microsatellite edge starts with "reverse thinking." Most space corporations, including SpaceX, start with 100-kilogram-class microsatellites and scale up to 500- to 1,000-kilogram-class medium-to-large satellites. But KAI is extending the medium-to-large satellite technologies it has honed since the 1990s to microsatellites. A KAI official said, "We transplanted the development process for medium-to-large satellites into microsatellites and completed a system that can produce products with consistent quality."
The key for microsatellites is to capture as many images as possible over short intervals and accurately transmit those images and the locations where they were captured to the ground. Larger satellites can deliver higher performance, but microsatellites are forced to use hardware with somewhat lower performance due to weight and expense constraints. KAI overcame this limit by embedding the same high-precision control logic (software) proven on medium-to-large satellites.
For actual imaging location information, KAI boasts accuracy 40% higher than the standard proposed by customers. In resolution, it has closed in on the sub-0.3-meter class held by global microsatellite leaders such as Umbra in the United States and ICEYE in Finland. It can distinguish even types of cars on the ground. A KAI official said, "On top of that, in terms of image acquisition capability, we actually outperform global competitors."
◇ 130 billion won "integrated production" infrastructure built… applied car parts at "one-hundredth the cost"
The next weapon after performance is production competitiveness. To that end, in 2020 KAI invested 130 billion won in the Sacheon space center to build the largest civilian space infrastructure. It is a "One-Site, One-Stop" integrated production system that performs the entire process from satellite design to manufacturing, assembly, testing, and mass production in one place. It completely eliminated chronic bottlenecks that used to take up to two weeks each time satellites were moved to and from external facilities for various environmental tests.
The way it cut component costs is also ingenious. Typically, certified products deemed suitable for space environments can cost hundreds of thousands of won even for a single bolt. To replace them, KAI introduced automotive parts and off-the-shelf components. Automotive parts also withstand harsh environments and have long durability, with service lives of more than 10 years. Yet their prices are at least one-tenth to as low as one-hundredth of space-grade parts.
A KAI official said, "Because satellites cannot be repaired once they enter orbit, medium-to-large satellites use only top-grade components and are conservatively designed," adding, "By contrast, microsatellites have a relatively short three-year service life, so we flexibly lowered component grades and actively used off-the-shelf parts to maximize cost-effectiveness." Even so, the plan is to offset any performance shortfalls with software technologies.
Applying a "standard platform," where only the payload such as the antenna or camera is swapped out depending on the satellite's use, is also part of the cost-cutting effort. A KAI official said, "Like keeping the body of a DSLR camera and only changing the lens, it's a concept used in the next-generation medium satellite program," adding, "Because there is a standardized framework, we can sharply reduce development timelines and expense."
◇ In August, 1.4 trillion won government contract race, competing with Hanwha… aiming to produce 220 satellites in the 2030s
For now, the clock at KAI's space center is set to the government's "dual-use microsatellite system development project," which will start in August. It is a large project worth a total of 1.4223 trillion won to simultaneously supply dozens of microsynthetic aperture radar (SAR) satellites by 2030. KAI, which has led Korea's satellite programs for 30 years, and Hanwha Systems(272210), which has strengths in payloads such as radar, are expected to engage in fierce competition.
The reason domestic defense corporations are staking everything on microsatellites is explosive market growth. Priced in the 10 billion to 20 billion won range, microsatellites are cheaper than medium-to-large satellites, boosting demand in both military and civilian sectors. Global market researcher Grand View Research projected that the global market for sub-100-kilogram microsatellites will grow at an average annual rate of 22.8%, from $3,998.4 million (about 5.9 trillion won) in 2024 to $13,951.5 million (about 20.7 trillion won) in 2030. A KAI official said, "As price burdens fall, various institutions are requesting production."
KAI plans to use this contract race as a springboard to rapidly expand into future space businesses. First, it will secure the capability to produce 220 microsatellites in the 2030s. It is preparing to enter low-Earth-orbit satellite communications networks like SpaceX's Starlink in partnership with domestic and overseas corporations. The calculation is that at least 220 satellites must be launched as a constellation to provide uninterrupted internet across the Korean Peninsula. In addition, it is promoting a data services business that uses AI to analyze satellite imagery to manage large business sites such as major construction sites or golf courses.
It also plans to actively pursue overseas exports, leveraging its domestic portfolio. Some countries are said to be demanding turnkey solutions that bundle satellite buses with payloads. Exporting as a package with KAI's complete aircraft is also being discussed. A KAI official said, "We have accumulated process know-how through state-led projects and secured price competitiveness," adding, "The global defense network established through aircraft exports will serve as KAI's powerful export channel."