– KASA’s 2027 Budget Proposal: KRW 1.6491 Trillion (+529 Billion YoY)
– Major Investment Areas: Space Highway, Lunar Exploration, Advanced Satellites, Future Aviation, and Private-Sector-Led Aerospace Ecosystem
The Korea AeroSpace Administration (KASA, Administrator Taeseog Oh) announced that KASA’s 2027 government budget proposal totals KRW 1.6491 trillion, an increase of KRW 529 billion from KRW 1.1201 trillion in 2026.
(KASA Budget Trend: KRW 759.8 billion in 2024 → KRW 964.9 billion in 2025 → KRW 1.12 trillion in 2026)
The 2027 budget proposal goes beyond research and development and toward more strategic investment to foster aerospace as a key national industry. Global aerospace industry ecosystem is rapidly being reorganized around the private sector, and new markets are beginning to open in earnest — the government’s plan is to share early-stage market and technology development risks, thereby encouraging private-sector challenges and investment.
In 2027, KASA’s investment will focus on five areas: ① building a space highway for access to space, ② expanding Korea’s space economic territory through lunar exploration, ③ fostering the advanced satellite industry, ④ strengthening the competitiveness of the future aviation industry, and ⑤ creating a private-sector-led aerospace industry ecosystem. The goal is to connect accumulated technological capabilities in launch vehicles, exploration, satellites, and aviation to industrial competitiveness, while enabling companies and regions to become the center of aerospace industry growth.
The details of these five priority investment areas are as follows.
① Building Korea’s Space Highway: Korean Satellites on Korean Launch Vehicles(2026: KRW 263.2 billion → 2027: KRW 562.9 billion, up 113.8%)
The capability to freely access space is a key foundation for securing national space sovereignty while fostering the growth of the space industry. KASA will make a bold investment of KRW 562.9 billion, more than double the previous year’s budget, to complete Korea’s space highway infrastructure and accelerate the transition to an era of private-sector-led commercial launch services.
First, KASA will continue the Korean Launch Vehicle Advancement Project to enhance the reliability of Korea Space Launch Vehicle Nuri (KSLV-II, hereinafter “Nuri”). Nuri Follow-up Launch Support Project will be started to establish a launch system through which launch will take place at least once year. Then, in a more mid-to-long term perspective, a private-sector-led commercial launch ecosystem will be established to launch two or more times per year. KASA will also expand the budget for the Next-Generation Launch Vehicle Development Project, which will become a game changer in securing global price competitiveness for launch vehicles, and accelerate efforts to secure first-stage reusability and large-scale transportation technologies. To respond in a timely manner to rapidly increasing demand for space launches from both the private and public sectors, KASA will newly establish the Naro Space Center Advancement (Phase 3) Project. The project will replace aging launch-site equipment and construct a large-scale assembly facility and a test building, thereby expanding domestic space launch infrastructure.
[Key Projects Related to Building Korea’s Space Highway]
Nuri Follow-up Launch Support: KRW 75 billion (2027 proposal, new)
Korean Launch Vehicle Advancement (R&D): KRW 125.3 billion (2026) → KRW 155.0 billion (2027 proposal)
Next-Generation Launch Vehicle Development (R&D): KRW 120.4 billion (2026) → KRW 291.6 billion (2027 proposal)
Naro Space Center Advancement (Phase 3) (R&D): KRW 25.3 billion (2027 proposal, new)
② Expanding Korea’s Space Economic Territory through Lunar Exploration
(2026: KRW 99.8 billion → 2027: KRW 279.4 billion, up 180.1%)
The Moon is not only a target for scientific exploration but also a key stage for the future space economy, where practical economic activities in areas such as communications, navigation, and resource utilization will take place. KASA will invest KRW 279.4 billion, nearly three times the previous year’s budget, to establish a lunar exploration ecosystem that progresses from the establishment of Earth-Moon communications infrastructure to demonstration of a small lunar lander, and to completion of an independent lunar landing.
To proactively secure a communications network connecting the lunar surface and Earth, KASA will newly launch the Lunar Orbital Communications Satellite Development Project. KASA will also pursue the Lunar Surface Mission Payloads and Mobility Technology Development Project to strengthen capabilities for scientific research and mobility on the lunar surface. In addition, KASA will actively pursue the Small Lunar Lander Development Project to take on the challenge of achieving a lunar landing and conducting technology demonstrations in 2030. Furthermore, KASA will connect accumulated private-sector technological capabilities and infrastructure with the Lunar Exploration Phase 2 (Lunar Lander Development) Project to expand Korea’s economic territory into space.
[Key Projects Related to Expanding Space Economic Territory through Lunar Exploration]
Lunar Orbital Communications Satellite Development (R&D): KRW 13.0 billion (2027 proposal, new)
Lunar Surface Mission Payloads and Mobility Technology Development (R&D): KRW 5.6 billion (2027 proposal, new)
Small Lunar Lander Development (R&D): KRW 106.3 billion (2027 proposal, new)
Lunar Exploration Phase 2 (Lunar Lander Development) (R&D): KRW 80.9 billion (2026) → KRW 93.7 billion (2027 proposal)
③ Securing World-Class Advanced Satellite Technologies and Making the Satellite Industry a New Growth Engine
(2026: KRW 236.2 billion → 2027: KRW 264.7 billion, up 12.1%)
The global satellite market is rapidly growing due to the establishment of low Earth orbit (LEO) satellite communications networks and the rapidly increasing demand for space AI data. Accordingly, KASA will invest KRW 264.7 billion, a 12.1% increase from the previous year, to actively foster a satellite manufacturing and utilization ecosystem covering the entire lifecycle, ranging from ultra-high-resolution observation satellites to communications and navigation infrastructure and next-generation new industries such as space AI data centers.
First, KASA will newly launch the Geostationary Environmental and Ocean Satellite Development Project to significantly strengthen national security and precision monitoring capabilities for climate and disasters. KASA will also develop KOMPSAT-8 to lead ultra-high-resolution observation technologies. In addition, KASA will continue the Korean Positioning System (KPS) Development Project to establish an independent positioning and navigation foundation and the Low Earth Orbit (LEO) Satellite Communications Technology Development Project to lead the 6G era by connecting ground and space. Furthermore, KASA will proactively secure future technologies, including core technologies for space AI data centers that can overcome limitations in power and cooling, thereby opening new frontiers in next-generation space industries.
[Key Projects Related to Fostering the Advanced Satellite Industry]
Geostationary Environmental and Ocean Satellite Development (R&D): KRW 28.5 billion (2027 proposal, new)
KOMPSAT-8 Development (R&D): KRW 18.8 billion (2026) → KRW 56.5 billion (2027 proposal)
Low Earth Orbit Satellite Communications Technology Development (R&D): KRW 15.3 billion (2026) → KRW 20.5 billion (2027 proposal)
Korean Positioning System (KPS) Development (R&D): KRW 38.3 billion (2026) → KRW 46.5 billion (2027 proposal)
High-Efficiency, Large-Capacity Thermal Management and Power Control Core Technology Development and Ground Verification Project (Strategic Research Project of the Korea Aerospace Research Institute, KARI): KRW 2.1 billion (2027 proposal, new)
④ Strengthening the Competitiveness of the Aviation Industry through Future Aviation Technologies
(2026: KRW 53.1 billion → 2027: KRW 56.8 billion, up 7.0%)
Despite the completion of two existing programs in 2026 (totaling KRW 17.3 billion), the overall budget will increase as new investments in key future technology areas, including AAM and drones, are expanded.
The aviation industry is a strategic national industry integrating advanced technologies such as advanced materials, machinery, and electronics, and global competition to secure leadership in future markets is intensifying. Accordingly, KASA will invest KRW 56.8 billion, a 7.0% increase from the previous year, to simultaneously secure leadership in key future mobility technologies, achieve self-reliance in strategic technologies, and support Korean companies in entering global value chains (GVCs).
First, KASA will newly launch the AAM Innovation Technology Development Project and the Drone-to-Drone Core Technology Development Project based on public demand, and expand investment in the Electric-Turbine Hybrid Propulsion System Core Technology Development Project to secure eco-friendly and highly efficient propulsion systems. In addition, KASA will launch the Advanced Aircraft Engine Core Materials and Components Manufacturing Technology Development Project to establish a domestic system for developing advanced aircraft engines. Furthermore, KASA will newly pursue the International Joint Civil Aircraft Development Participation Foundation Building Project to systematically support entry into the high-value-added aircraft manufacturing ecosystem and secure long-term supplier positions in global supply chains led by companies such as Boeing and Airbus.
[Key Projects Related to Strengthening Global Competitiveness in Future Aviation]
AAM Innovation Technology Development (R&D): KRW 3.0 billion (2027 proposal, new)
Drone-to-Drone Core Technology Development (R&D): KRW 3.1 billion (2027 proposal, new)
Electric-Turbine Hybrid Propulsion System Core Technology Development (R&D): KRW 6.0 billion (2026) → KRW 10.0 billion (2027 proposal)
Next-Generation Aircraft Weapon System Advanced Aircraft Engine Core Materials and Components Manufacturing Technology Development (R&D): KRW 2.7 billion (2027 proposal, new)
International Joint Civil Aircraft Development Participation Foundation Building: KRW 2.0 billion (2027 proposal, new)
⑤ Building a Private-Sector-Led Aerospace Industry Ecosystem
(2026: KRW 181.3 billion → 2027: KRW 184.5 billion, up 1.8%)
KASA will establish a virtuous-cycle industrial ecosystem where R&D achievements lead to increases in private companies’ sales, job creation, and exports. KASA will invest KRW 184.5 billion, a 1.8% increase from the previous year, to strengthen a full-cycle corporate support system, including funding, demonstration opportunities, and workforce development, enabling outstanding startups and small and medium-sized enterprises to grow.
First, KASA will continue investment in the New Space Investment Support Fund to encourage challenging investments and scale-up by private-sector-led aerospace companies, and expand investment in Space Technology Commercialization Demonstration Support to accelerate the commercialization of promising technologies. In addition, KASA will expand the budget for the Private Aerospace Industry Ecosystem Establishment Program to promote aerospace startups and support overseas exports. Furthermore, KASA will expand investment in industry-oriented professional workforce development to timely provide practical talent that meets industry demand and strengthen the foundation of the aerospace industry.
[Key Projects Related to Building the Aerospace Industry Ecosystem]
New Space Investment Support: KRW 100 billion (2026) → KRW 100 billion (2027 proposal)
Space Technology Commercialization Demonstration Support: KRW 0.5 billion (2026) → KRW 1.5 billion (2027 proposal)
Private Aerospace Industry Ecosystem Establishment: KRW 0.9 billion (2026) → KRW 1.9 billion (2027 proposal)
Space Technology Innovation Talent Cultivation: KRW 3.0 billion (2026) → KRW 6.1 billion (2027 proposal)
KASA’s 2027 government budget proposal will be finalized after deliberations by the relevant standing committees and the Special Committee on Budget and Accounts of the National Assembly, followed by a vote at a plenary session.
KASA Administrator Oh said, “The 2027 budget proposal focuses on connecting government-led technology development with company growth and industrial competitiveness, going beyond technology development itself.” He added, “We will do our utmost to achieve a major leap forward for Korea’s aerospace industry by strengthening competitiveness in space transportation, space exploration, advanced satellites, and future aviation.”