The Korea AeroSpace Administration said on the 21st that it has formed the "New Space Fund No. 3," which invests in space startups, with a total size of 8.1 billion won.
The New Space Fund is a government-backed fund first introduced in 2023, created to support small and venture companies in the space industry that struggle to raise capital. The investment targets span the entire space industry, including the manufacturing and operation of space hardware such as launch vehicles and satellites, and the development of products and services that use space-related information.
Harang Technology Investment was selected as the manager of the No. 3 fund, which was formed at 8.1 billion won by combining 3.5 billion won in government investment and 4.6 billion won in private investment. With this, the New Space Fund totals 30.1 billion won, including 10 billion won for Fund No. 1 and 12 billion won for Fund No. 2.
The New Space Fund No. 1 was formed in September 2023 at 10 billion won and has invested about 3 billion won through Medici Investment in corporations developing essential components for the aerospace and defense industry. Fund No. 2, created at 12 billion won in October last year, is managed by Company K Partners and has invested about 1 billion won in corporations such as space bio research, contract manufacturing of active pharmaceutical ingredients, and gene delivery research companies based on drop towers.
The New Space Fund is operated for 10 years after formation, making investments during the first five years and then going through the recovery process for the following five years. The recovered resources are reinvested into the New Space Fund, creating a virtuous cycle of investment, growth, and reinvestment.
Korea AeroSpace Administration Chief Yoon Young-bin said, "With the formation of New Space Fund No. 3, we can provide priming support to corporations developing early-stage technologies in the space sector," adding, "In 2026, we will expand the fund to a level that allows investment in growth-stage corporations, so that it plays an important role in fostering new space companies and building the space industry ecosystem."