- A 27% Increase from 2024, with Expanded Investment in Innovative R&D and New Industry Creation Expected to Drive the Private-Led Aerospace Economy
The Korea AeroSpace Administration (hereinafter referred to as 'KASA'), led by Administrator Yoon Youngbin, has announced a budget proposal for 2025, amounting to KRW 964.9 billion, representing a 27% increase from the 2024 budget of KRW 759.8 billion.
Since its establishment on May 27 of this year, KASA has been working to secure a budget that aligns with its goals outlined in the "KASA Policy Directions," specifically targeting Korea's ambition to emerge as one of the top five aerospace powers and to elevate the aerospace sector as a pivotal national industry. KASA is committed to drive a private-led aerospace economy by expanding investments in innovative R&D and new industry creation across the sectors of space transportation, satellites, space science exploration, and aeronautics innovation. Accordingly, KASA's total budget for 2025 has been set at KRW 964.9 billion, marking a 27% increase of KRW 205.1 billion compared to the 2024 budget of KRW 759.8 billion.
KASA's 2025 budget will primarily focus on five key areas: ① Enhance space transportation capabilities and driving cost efficiency innovation, ② Develop state-of-the-art satellites, ③ Launch fully fledged lunar lander development and participation in the Square Kilometre Array Observatory (SKAO), ④ Take a leadership role in the global advanced aviation industry, and ⑤ Foster a private-led industrial ecosystem. These investments are designed to propel Korea towards its goal of becoming one of the world's top five aerospace powers and to elevate aerospace sector as a pivotal national industry.
The key investment areas for KASA are as follows:
① Enhance Space Transportation Capabilities and Driving Cost Efficiency Innovation: KASA has secured funding for the Korean launch vehicle advancement project, which will enable repeated launches of the autonomous Nuri rocket and the development of a next-generation launch vehicle, which will serve a crucial role in future national space missions, including lunar lander launch. New investments will also be made in developing precursor technologies for cost-efficient reusable launch vehicles. (KRW 206.4 billion → KRW 310.6 billion)
* Korea Space Launch Vehicle-Ⅱ (KSLV-Ⅱ) Enhancement Program: KRW 93.7 billion (2024) → KRW 147.8 billion (2025, Increase of KRW 54.1 billion)
* Korea Space Launch Vehicle-Ⅲ (KSLV-Ⅲ) Development Program: KRW 110.1 billion (2024) → KRW 150.8 billion (2025, Increase of KRW 40.7 billion)
* Innovative Reusable Launch Vehicle Precursor Technology Development: (New) KRW 5 billion
② Develop State-of-the-Art Satellites: KASA will expand investments in satellite development to conduct national missions, including provision of public services and enhancement of disaster preparedness, while also driving the growth of the satellite industry. These new investments will facilitate the development of state-of-the-art satellites specialized in next-generation communications satellites on Low-Earth Orbit (LEO) and weather monitoring satellites on Geostationary-Orbit (GEO). (KRW 176 billion → KRW 212.3 billion)
* Development of GEOstationary KOrea Multi-Purpose SATellite 3 (Cheollian-3): KRW 25.5 billion (2024) → KRW 35 billion (2025, Increase of KRW 9.5 billion)
* Development of LEO Satellite Communication Technologies: (New) KRW 11.3 billion
* Development of GEOstationary KOrea Multi-Purpose SATellite 5 (Cheollian-5): (New) KRW 5 billion
③ Launch fully fledged lunar lander development and participation in the Square Kilometre Array Observatory (SKAO): KASA will initiate full-fledged development of a lunar lander to prepare for rapidly growing lunar exploration market and to expand the space exploration activities in Korea. Additionally, an international joint project to construct the SKAO, which offers 10 times the sensitivity and 100 times the scanning speed of current facilities, will be carried out. (KRW 9.3 billion → KRW 54.3 billion)
* Lunar Exploration Program, Phase 2 (Lunar Lander Development): KRW 4 billion (2024) → KRW 45 billion (2025, Increase of KRW 41 billion)
* International Joint Research on Science Instruments for Commercial Lunar Payload Services (CLPS): KRW 3.3 billion (2024) → KRW 7.3 billion (2025, Increase of KRW 4 billion)
* SKAO: (New) KRW 2 billion
④ Take a leadership role in the global advanced aviation industry: KASA will reinforce backing for the localization of aerospace materials and components, as well as the development of advanced urban unmanned aerial vehicle technologies, to facilitate the self-reliance of key aeronautics technologies and components, and secure a leading position in the emerging civil aviation market." Although several aeronautics projects are set to conclude in 2024 (Seven projects including development testing of material properties data for the localization of lightweight materials for aerospace application, with a total budget of KRW 20.7 billion), leading to a temporary reduction in the budget, the plan is to gradually increase investments in related sectors in the coming years. (KRW 61.2 billion → KRW 40.5 billion)
* Turbofan Aeroengine Inconel 718 Superalloy Casting and Forging Development: KRW 3.2 billion (2024) → KRW 10.7 billion (2025, Increase of KRW 7.5 billion)
⑤ Foster a Private-Led Industrial Ecosystem: KASA will implement the "Space Industry Triangular Cluster Project" to foster a robust aerospace industrial ecosystem and establish a foundation for a self-sustaining innovative environment. This initiative will expand investments in developing regional hub infrastructure. Additionally, KASA will support the localization of advanced aerospace components and testing of their reliability and safety in space environments, thereby strengthening the competitiveness of the domestic aerospace industry. (KRW 82.7 billion → KRW 115.3 billion)
* Space Industry Triangular Cluster Project: KRW 10 billion (2024) → KRW 23 billion (2025, Increase of KRW 13 billion)
* Support for Verification of Domestic Devices and Components in Space Environment: KRW 1.4 billion (2024) → KRW 5.6 billion (2025, Increase of KRW 4.2 billion)
* Future Space Economy Cornerstone Project (Support for Localization of EEE Devices): (New) KRW 2 billion
Administrator Yoon Youngbin emphasized, "To elevate Korea to one of the top five aerospace powers, bold investments in R&D, the development of an aerospace economy, and the establishment of world-class research and industrial environments are essential." He added, "With the 2025 KASA budget increased by KRW 205.1 billion from this year to a total of KRW 964.9 billion, KASA is committed to propelling Korea into the top five global aerospace powers through aggressive R&D investments in the sector."
For further information, please contact the Space Science/Exploration Mission Design Program (Phone: +82-55-856-4113) of the Korea AeroSpace Administration.