KAI, Hanwha System Vie for South Korea’s Microsatellite SAR Program

A SpaceX Falcon 9 rocket carrying South Korea’s reconnaissance satellite No. 5 lifts off. [Photo=SpaceX]

South Korea’s major defense companies are increasingly targeting space as a new growth area, and competition is intensifying for government contracts. Korea Aerospace Industries (KAI) and Hanwha Systems are set to face off over a government microsatellite program.

Industry officials said the government plans to select a prime contractor this year for a dual-use, civil-military microsatellite system development project. Budgeted at about 1.4 trillion won, the program aims to build a cluster-based surveillance system operating 40 microsatellite synthetic aperture radar (SAR) satellites simultaneously by 2030. A detailed request for proposals is expected around August.

SAR, the program’s core technology, uses radar signals and processes tiny differences in return time to map terrain and observe the Earth’s surface. Because it relies on radar, it can operate day or night and in bad weather. The government plans to expand its SAR satellite fleet from the current five to more than eight times that number for direct use in civilian and military operations.

A microsatellite SAR satellite. [Photo=KAI]

With the prime contractor decision approaching, both companies are stepping up their bids. KAI is highlighting decades of space-industry experience dating to the 1990s and its track record building satellite platforms, and it has begun producing a prototype. Hanwha Systems, a later entrant, is betting on its SAR capabilities and says it is confident about winning the project. Both companies operate space centers capable of manufacturing, assembly and testing.

A Hanwha Systems official said the Jeju Space Center is designed so work can be carried out in a single workflow from start to finish, enabling production of more than 100 small satellites a year along with rapid response and stable operations.

Companies are moving into small satellites because of their growth potential. Unlike large satellites, which typically operate for more than 10 years, microsatellites have a shorter lifespan of two to three years, leading to faster replacement cycles that the industry views as more profitable.

Efforts to build global competitiveness for exports are also continuing. KAI recently discussed cooperation with Saudi Arabia’s Ministry of Investment in space, satellites, communications and aviation at the 2026 World Defense Show.

A KAI official said the company plans to advance satellite technology based on three decades of experience and to secure a “second growth engine” for defense exports by linking it with aircraft exports. The official added that KAI will pursue development of low-cost, multipurpose microsatellites and reusable launch vehicles to lead South Korea’s space industry.

* This article has been translated by AI.

Oh Jooseok farbrother@ajunews.com