[2027 Budget Plan] KASA Allocates 1.6 Trillion Won for Space Highway and Lunar Exploration

A 47% Increase: 1.6491 Trillion Won Allocated

The Korea Aerospace Administration (KASA) announced on September 1 that its proposed government budget for 2027 has been set at 1.6491 trillion won, representing an approximately 47% increase compared to this year’s 1.1201 trillion won. As the space and aerospace industry ecosystem is being reorganized around the private sector, the government plans to share the risks associated with the initial market and technology development stage in order to encourage private investment.

The five major investment priorities in this year’s budget draft are: ▲ construction of a space expressway to expand space access ▲ expansion of space economic territory through lunar exploration ▲ fostering the advanced satellite industry ▲ strengthening the global competitiveness of the next-generation aviation industry ▲ and establishing a private sector–oriented industrial ecosystem.

Tae Seog Oh, Administrator of the Korea Aerospace Administration (KASA), is announcing the space aerospace industry development strategy at the Vision for Advanced Industry Development National Report for the Yeongnam Region, chaired by President Lee Jae-myung in Jinju, Gyeongnam on the 3rd. Yonhap News

First, the budget for space expressway infrastructure has been set at 562.9 billion won, more than doubling this year’s allocation. Through the Korean Launch Vehicle Advancement Project, KASA will enhance the reliability of Nuri and begin follow-up projects to ensure reliable, continuous launches, aiming for at least one scheduled launch per year. The budget for next-generation launch vehicle development has also increased to support reusability of the first stage and securing heavy-lift transportation technology. For the Naro Space Center, KASA has launched a third-phase advancement project to replace outdated launch site equipment and newly construct a large assembly building and a test facility.

The budget for lunar exploration has been allocated at 279.4 billion won, which is three times higher than this year’s amount. KASA will newly initiate the development of a lunar orbiter communication satellite to establish a communication network between the Moon’s surface and Earth, and will pursue the development of lunar surface mission payloads and mobility technology. Additionally, the agency aims to develop a small lunar lander to attempt a Moon landing and perform technology demonstrations by 2030.

To secure advanced satellite technology, 264.7 billion won has been allocated, a 12.1% increase over last year. To reinforce national security and climate/disaster monitoring capabilities, KASA will begin developing new geostationary environmental and ocean satellites and will also develop the Multi-purpose Practical Satellite No. 8. The agency will push forward with the development of Korea's own satellite navigation system (KPS) as well as low-Earth orbit satellite communication technology.

For future aviation technology, 56.8 billion won has been allocated, up 7% from the previous year. This includes newly launching the development of Advanced Air Mobility (AAM) technology and core “drone-vs-drone” technologies for public sector demand. There will also be increased investment in electric-turbine hybrid propulsion systems and the development of manufacturing technology for core advanced aviation engine materials and parts.

To establish a private-led space and aerospace industrial ecosystem, 184.5 billion won is allocated, up 1.8% from this year. Support for New Space investment funds will continue to attract private investment in space and aerospace companies, along with increased investment in commercialization demonstration support for promising companies. Alongside an expansion of the private aerospace industry ecosystem budget, investment in cultivating field-adaptive specialized personnel will also be increased.

The 2027 KASA budget proposal will be finalized following reviews by the National Assembly’s standing committee and special budget committee and eventual approval at the plenary session. Korea Aerospace Administration Chief Tae Seog Oh stated, “The 2027 budget plan focuses on going beyond government-led technology development to directly connect to corporate growth and industry competitiveness,” adding, “We will do our best to strengthen capabilities in space transportation, space exploration, advanced satellites, and future aviation sectors to achieve a giant leap forward in South Korea’s space and aerospace industry.”

This content was produced with the assistance of AI translation services.