Stick Ventures held a space industry forum titled 'Growing the Space Industry Ecosystem Together' on May 9 at D.Camp Seolleung in Seoul's Gangnam district, drawing over 130 attendees from venture capital firms, industry, and academia. The event responded to heightened investor interest in Korea's aerospace sector following SpaceX's market entry and subsequent rallies in related assets. Korea's space industry remains in early stages, with notable performance limited to defense-based conglomerates, yet investors view the sector as a low-entry opportunity in a core future industry led by SpaceX.
KARI Researcher Presents Space Economy Realities and Government Demand Role
Korea Aerospace Research Institute (KARI) researcher Baek Gi-tae presented on NewSpace optimism versus reality, summarizing current space business into three areas: space economy statistical illusions, government demand importance, and Korea NewSpace market bottlenecks. Baek stated projections of space economy growth to $1.8 trillion by 2035 include downstream sectors like Uber requiring separate analysis, and while commercial sector accounts for 78% in statistics, satellite infrastructure and launch vehicle manufacturing remain heavily dependent on government budgets. He emphasized distinguishing between macroscopic trends and actual government demand available for competition.
US NewSpace Success Tied to Defense Contracts and Institutional Framework
Baek attributed US NewSpace success to institutional mechanisms and defense demand. He explained Planet Labs and SpaceX grew not solely through private innovation but by integrating with US military defense and security programs from early stages. The 1998 Commercial Space Act clearly separated government core functions from commercial functions, establishing legal and institutional foundations enabling government to purchase commercial services repeatedly each year. Baek noted launch cost reductions and small satellite mass production gained recognition for creating new service value rather than technology alone.
Korea Faces Domestic Demand Bottleneck Despite Technical Capabilities
Baek identified Korea's bottleneck as limited government public procurement forcing early-stage companies to depend on overseas sales despite possessing technical capabilities in satellite development and vertical integration. He called for urgent institutional design defining public demand as purchasable service units. Baek viewed Korea's recently announced 'Aerospace Industry Development Strategy' disclosing annual satellite development plans by weight as a positive signal reducing market demand uncertainty.
Perigee Aerospace Secures Overseas Contracts in Philippines and UAE
Perigee Aerospace, a Stick Ventures portfolio company presenting at the forum, reported overseas business achievements. The company signed its first overseas contract with the Philippines Space Agency and secured approximately $3 million in Phase 1 from UAE's Edge Group for methane engine and combustion test facility construction. Perigee plans to expand into Saudi Arabia rocket launch projects. Forum attendees included representatives from KOSDAQ-listed Nara Space, KT subsidiary KT SAT, and Mirae Asset Capital Managing Director Lee Chung-hwan, who invested in SpaceX and discussed domestic and international aerospace investment trends.
FAQ
What was the purpose of Stick Ventures' space industry forum on May 9?
Stick Ventures organized the forum to share knowledge and networking opportunities among Korea's space industry stakeholders as investor interest increased following SpaceX's market entry. The event brought together over 130 attendees from venture capital, industry, and academia to discuss ecosystem growth.
What did KARI researcher Baek Gi-tae identify as Korea's main space industry challenge?
Baek stated Korea faces a bottleneck where companies possess technical capabilities in satellite development but limited government public procurement forces early-stage firms to depend on overseas sales for initial revenue. He called for institutional design defining public demand as purchasable service units.
