S. Korea’s private-led space exploration spurs aerospace startups going public

[Courtesy of Innospace]

As private-led space exploration gains momentum in South Korea, aerospace startups are increasingly moving towards going public. This trend is accelerated by the recent establishment of the Korean Aerospace Agency, which has prompted companies to seek funding in alignment with government efforts to foster the nascent industry in the country.

Despite the relatively modest size of upcoming IPO deals, the securities companies are optimistic about the limitless potential of aerospace technology, viewing it as a burgeoning theme following artificial intelligence.

According to industry sources, Innospace is set to list on the Kosdaq market on July 2 through special exemption standards for tech startups. Innospace, which specializes in launching small rockets equipped with independently developed hybrid engines (solid fuel and liquid oxidizer), confirmed its IPO price at the upper end of the expected range at 43,300 won ($32). This sets the company’s post-listing market capitalization at an estimated 406.2 billion won, making it the highest among Kosdaq IPOs this year after Jeil Machine & Solution.

If Innospace’s listing proceeds as planned, it will become the first publicly traded private space launch company in South Korea. The company successfully conducted a suborbital test launch of its private launch vehicle, HANBIT-TLV (single stage), in March last year. Innospace plans to increase its launches to seven in 2025 and ten in 2026, starting with its first commercial launch in March next year.

As of this month, Innospace has secured four launch service contracts worth a total of $12.61 million. Although the company expects no revenue from launch services this year, it anticipates generating about 800 million won from test evaluations and technical research services.

Meritz Securities predicts that Innospace will achieve 42.8 billion won in revenue and an operating loss of 1.3 billion won in 2025. However, with the full operation of its HANBIT-Nano, Micro, and Mini lineups in 2026, the company is expected to turn profitable with revenues of 92.5 billion won and operating profits of 15.8 billion won.

HVM, an advanced metals manufacturer, is also pursuing a public listing through special exemption standards for tech startups, despite being a profitable company. The listing, scheduled for June 28, aims to reflect the company’s projected net income from its burgeoning aerospace sector in 2026 for its valuation. The performance of satellites and rockets, which must withstand extreme conditions during launches and storage, heavily depends on the properties of specialized metals.

Currently, HVM’s revenue from the aerospace industry constitutes about 5 percent of its total, significantly lower than its traditional sectors like semiconductors (74 percent). However, the company anticipates this share to rise to 52 percent by 2026 as the space launch market expands.

Industrial motor manufacturer Higen RNM, set to list on June 27, also aims to expand beyond its core robot actuator business into the aerospace sector. The company has already developed and supplied actuators for fuel injection pumps in space launch vehicles to domestic aerospace firms.

Lumir, a developer of ultra-small satellites, has applied for preliminary listing approval with plans to go public in the second half of the year. Lumir manufactures ultra-small satellites that are mounted on launch vehicles, including the space radiation detection CubeSat launched on Nuri’s third mission last June.

Other companies like NARA SPACE Technology, which develops ultra-small satellites, and Perigee Aerospace, a small rocket manufacturer, are also preparing for public listings within this year.