In this blog post, we will examine the significance of the aerospace industry for national defense capabilities, industrial competitiveness, and national technological prowess, and consider why South Korea must continue to invest in the aerospace industry from a long-term perspective.

The Significance of the Aerospace Industry as Demonstrated by the Success of the Naro Rocket

On January 30, 2013, the Korean Space Launch Vehicle-1 (KSLV-1) Naro, carrying a scientific satellite, successfully entered orbit on its third launch attempt. The Naro was developed in collaboration with Russia, and through this success, South Korea established itself as a nation with space launch capabilities and began to participate in earnest in the international space development competition. At the time, the phrase “South Korea is the world’s 11th spacefaring nation” was widely used; however, since classifications may vary depending on how one ranks countries that have successfully launched a launch vehicle from their own territory, it is more appropriate to view the Naro’s success as a significant turning point in South Korea’s space development history rather than as a specific ranking. Subsequently, following the Naro rocket, South Korea successfully developed and launched the Nuri rocket—a Korean-made launch vehicle built with indigenous technology—and further strengthened its independent space transportation capabilities by successfully completing the fourth Nuri launch in 2025.
However, the path to the Naro rocket’s success was not entirely smooth. There had been two previous launch failures, and each time, fierce criticism arose from the public and online communities. Furthermore, distrust in the Naro rocket’s launch technology arose following the earlier failures. During the third launch, a mechanical error occurred on the originally scheduled launch day, causing the launch to be postponed. As the launch was repeatedly delayed at the time, anxiety grew among the public that it might fail yet again. In fact, the schedule for the third Naro launch was adjusted several times due to technical issues, and both the government and the research team were under considerable pressure to ensure a successful launch. One of the reasons public criticism of the Naro launch failures was particularly intense was likely the massive investment cost, amounting to hundreds of billions of won. So why should we invest in the aerospace industry when it requires such a massive budget and carries such high risks?
Before discussing the necessity of investing in the aerospace industry, why do we refer to it collectively as the “aerospace industry” rather than separating it into “aviation” and “space” industries? The aviation and space industries are not entirely distinct fields. Consider the technology used to build fighter jets in the aviation industry. To build a fighter jet, various technologies are required, such as jet propulsion, aircraft structural mechanics, attitude control, and communications technology. Similarly, technologies such as propulsion systems, structural mechanics, attitude control, and communications technology are essential for manufacturing launch vehicles or rockets. Furthermore, there are many shared components and technologies—such as engines, control systems, structural materials, and communication devices—used in both the aviation and space industries. Ultimately, the aviation and space industries share a significant portion of the core technologies they require, and furthermore, their production infrastructure, specialized workforce, and research and development capabilities are closely interconnected. Of course, there are considerable differences between aircraft and space launch vehicles in terms of their operational environments and requirements, but a strong technological and industrial link exists between the two industries, enabling them to promote each other’s development. Therefore, we refer to these two fields collectively as the “aerospace industry.”

Is the aerospace industry directly linked to national defense capabilities?

The primary reason for investing in the aerospace industry is that aerospace technology is directly linked to national defense capabilities. A “space launch vehicle” is a rocket that carries a payload and transports it to a specific location in space. If the payload is a scientific satellite, the space launch vehicle is used for the purpose of scientific and technological development. However, rocket technology capable of long-range flight can also serve as a crucial technical foundation in the military sector. In particular, launch vehicle technology and ballistic missile technology share certain core technologies, such as propulsion systems, guidance and control, structural design, stage separation, and flight trajectory calculation. Therefore, rocket launch vehicle technology is closely linked to a nation’s defense capabilities. North Korea’s past persistent pursuit of long-range rocket development and satellite launches was not unrelated to the potential for military application of such technologies. South Korea, too, requires launch technology. It is crucial to possess independent space transportation and space technology capabilities—not only in the event of a full-scale war but also in light of military strength, strategic autonomy, and diplomatic bargaining power. This is why South Korea must continue to build its space development capabilities, including the Nuri rocket and satellite development.
Furthermore, aerospace technology is essential for air power. In modern warfare, air power is one of the key factors that determine the course of a war. In the event of a full-scale war, the mobility and operational range of the air force offer advantages on a different level from those of the Army or Navy. In a war where it is necessary to strike the enemy’s core capabilities before the opponent can do so, possessing a strong air force is of the utmost importance. However, air power is not determined solely by the number of fighter jets in service, but rather by the comprehensive level of various technologies, including the aerodynamic performance of the aircraft, engine performance, radar and electronic equipment, weapon systems, communications and data links, and electronic warfare capabilities. Past military simulations have also demonstrated that the technological gap between the latest fighter jets and older models can significantly influence the outcome of combat. This underscores the importance of aerospace technology in air power; furthermore, it can be said that aerospace technology is a key factor that determines a nation’s overall military strength.

Can the aerospace industry be competitive in the market?

Second, the aerospace industry is highly competitive in the market. One example is the domestically produced supersonic advanced trainer, the T-50, which entered mass production in the 2000s. The T-50 was developed as South Korea’s first domestically produced supersonic aircraft, and derivative models such as the FA-50—based on the T-50—were subsequently developed and introduced to overseas markets. At the time, export efforts were directed toward countries such as Indonesia and the Philippines, and the list of export destinations later expanded to include Iraq, Thailand, Poland, and Malaysia. KAI explains that T-50 series aircraft have now been exported to a total of six countries, including South Korea, and that the series has been recognized for its competitiveness in the global advanced trainer and light attack aircraft markets. Therefore, given that the actual export market has expanded beyond the specific unit numbers or export values originally projected, the development of the T-50 serves as a case study demonstrating how long-term investment in the aerospace industry can lead to industrial competitiveness.
As such, possessing aerospace technology creates the potential to generate significant foreign exchange earnings. While the aerospace industry was previously estimated to be worth hundreds of billions of dollars, it is now rapidly expanding into various sectors, including civil aviation, the defense industry, satellites, launch vehicles, space services, and unmanned systems. In particular, the global space economy is expanding, driven primarily by growth in the commercial sector. According to a Deloitte analysis citing data from the Space Foundation, the global space economy reached approximately $570 billion in 2023. The aerospace and defense industries are also growing, influenced by factors such as the recovery of air passenger demand, increased defense spending, the expansion of the space industry, and advancements in unmanned systems and artificial intelligence technologies. Therefore, the market outlook for the aerospace industry should not be viewed solely in terms of the traditional aircraft manufacturing sector of the past, but rather as a vast technology industry encompassing aviation, defense, and space.
From a long-term perspective, consistent investment in the aerospace industry is likely to yield significant economic benefits.
Furthermore, the aerospace industry not only holds international market value but can also greatly contribute to a nation’s economic development. This is because the advancement of the aerospace industry requires numerous partner companies and parts suppliers, thereby creating a wide variety of jobs. Just as manufacturing a single automobile requires countless parts, aircraft require even more complex systems, precision components, materials, electronic equipment, engines, and control systems. Space launch vehicles and satellites, in addition, require components and systems capable of operating in extreme environments. Just as in the current automotive production structure, building aircraft and spacecraft requires numerous partner companies and parts manufacturers, which can expand production and employment across the entire related industry.
Furthermore, many areas of the aerospace industry demand a higher level of expertise than the automotive industry or general manufacturing. Unlike the mass production, manufacturing, and repair of automobiles and electronic devices, in the aerospace industry, each piece of equipment is a finished product that demands a high level of safety and reliability; these devices require expertise throughout the entire process—from component development and manufacturing to testing, maintenance, and repair. Therefore, the development of the aerospace industry can provide jobs not only for research and development personnel but also for highly skilled professionals in various fields, including design, production, quality control, testing and evaluation, maintenance, software, materials, and electronics and communications. In fact, within the U.S. aerospace and defense industry, sectors including aviation and space are generating large-scale employment and economic value-added, demonstrating that the aerospace industry forms a broad industrial ecosystem that extends beyond simple manufacturing.

Does aerospace technology reflect a nation’s overall technological capabilities?

Finally, I believe a nation’s aerospace technology serves as a crucial yardstick for evaluating its technological capabilities. Aerospace technology can truly be described as the culmination of various cutting-edge technologies. To explain this in more detail, designing structures for hypersonic aircraft or space launch vehicles—so that they can withstand loads without breaking or deforming even during flight at high Mach numbers—requires advanced mechanical calculations and structural design expertise. Furthermore, reaching such high speeds requires minimizing air resistance, which necessitates research in aerodynamics. Additionally, the materials used in aerospace technology must withstand extreme environments—such as ultra-high temperatures, ultra-low temperatures, high pressure, and vibration—therefore requiring advanced materials engineering. Technologies such as radar, compact communication equipment, electronic devices, and stealth technology demand a high level of expertise in the fields of electronics and communications. In addition, technologies to enhance safety—such as safety devices and escape systems for the protection of passengers—are also necessary.
Consequently, aerospace technology integrates cutting-edge technologies developed across various fields of an era into a single system. Conversely, there have been instances where technologies developed in the aerospace sector have spread to other industries. Technologies developed in the aviation sector—such as automatic braking systems, safety technologies, and radar—have also influenced technological advancements in other industries and societal sectors. As such, since the aerospace sector simultaneously requires technologies from a wide range of fields—including propulsion systems, structures, materials, electronics, communications, control systems, software, precision manufacturing, and safety technologies—the level of aerospace technology can be considered one of the key indicators of a nation’s overall technological capability. I believe that aerospace technology is an essential element that South Korea must possess if it is to emerge as a true technological powerhouse.

Should the government invest in the aerospace industry?

If so, how should the government invest to foster the growth of the aerospace industry? I believe that, when it comes to the aerospace industry, the government should actively foster its development rather than leaving it solely to the efforts of private companies. The reasons are as follows: First, the aerospace industry involves many sectors where the government is a direct consumer, and it is an industry essential to national needs. In the automotive or IT industries, the primary consumers are private companies or individuals. However, in the aerospace industry, the government plays a pivotal role as the key consumer due to the objectives of national defense and public space development. To strengthen national defense, the government procures fighter jets, and to advance the nation’s space program, it develops and launches satellites and space launch vehicles. Thus, in the aerospace industry, government demand serves as a crucial foundation for industrial development.
However, if a country cannot meet this demand with its own domestic technology and production capacity and must continue to rely on external sources, it results in significant costs and technological dependence at the national level. In the past, South Korea paid enormous amounts of foreign currency to import state-of-the-art fighter jets and various aerospace-related equipment from abroad. Nevertheless, the country’s self-reliance in the aviation sector has expanded as it has acquired the capability to independently develop and produce advanced trainer aircraft and light combat aircraft through the development of the T-50 and the advancement of the FA-50. In the space sector as well, the nation’s space transportation capabilities have greatly improved with the development of the Nuri rocket—based on independent technology—following the Naro rocket. Currently, the industrial ecosystem is shifting toward expanding the participation of private space companies alongside government-led research and development, and the Naro Space Center is also broadening its scope of operations to support private launch services. To reduce these nationwide costs and technological dependence and secure strategic autonomy, the government needs to actively invest in the aerospace industry.
Second, the aerospace industry requires massive capital that private companies alone find difficult to shoulder, and it takes a long time to turn a profit. This is why the aerospace industry is said to have “high barriers to entry.” Launching a business in this sector requires substantial investment and significant technological development efforts. In fact, the development of the T-50 involved extensive research and development over a long period and entailed enormous costs. An industry that is likely to remain unprofitable for such a long period and demands massive development costs is often difficult for private companies—which prioritize short-term profitability—to invest in. Of course, there is a need to move away from the current model, where the government directly handles all development, toward a model where private companies and research institutions participate together. However, the government’s role remains crucial in areas that private companies cannot handle on their own, such as initial research and development, securing core technologies, and building long-term infrastructure. For these two reasons, I believe the government must continue to invest in the aerospace industry at the national level.

Why is long-term investment—one that can tolerate failure—necessary?

I hope that the public and the government will show more perseverance and faith in the aerospace industry. Although the Naro rocket was ultimately successful, there were two failures prior to that. Each time, the public reacted with comments such as, “Are they spending hundreds of billions of won just for a fireworks show?” or “So that’s how my tax money vanished,” and criticized the researchers in charge. However, I think the researchers who succeeded in the launch after three attempts are truly remarkable. Space development is truly not something that can be achieved in the short term. Japan, too, experienced numerous failures during the development and launch of the Lambda 4S, one of its first space launch vehicles, and there were countless failures and trials and errors in the space race between the United States and the Soviet Union. South Korea also reached success only after experiencing several failures during the development and launch of the Naro rocket, and subsequently secured its own launch vehicle technology through the development of the Nuri rocket. In particular, the Nuri rocket holds significant importance because it was developed using South Korea’s independent technology, rather than simply being imported from abroad.
As of 2002, when development of the Naro rocket began, South Korea’s history of seriously pursuing space launch vehicle development had spanned only about 10 years at that time. Of course, there was technical cooperation from Russia, but achieving a successful space launch within such a short period was a significant accomplishment. Since then, South Korea has further advanced its independent launch vehicle development capabilities through the Nuri rocket and has enhanced the reliability of its space transportation capabilities by successfully completing the fourth Nuri launch in 2025. Currently, South Korea is moving beyond state-led space development to promote the participation of private space companies and the expansion of commercial launch services.
If we had intended to abandon the development of space technology simply because the Naro rocket failed a few times, we should never have started in the first place. This underscores how much the aerospace industry requires a willingness to accept failure and a long-term commitment. Even in the event of failure, it is necessary to show encouragement and trust to researchers rather than subjecting them to harsh criticism.
Space development places immense pressure on researchers—so much so that it has been reported that Dr. Cho Kwang-rae, who served as the launch director for the Naro rocket, suffered severe psychological distress due to previous launch failures. Furthermore, it is known that Russian researchers involved in the Naro rocket’s development also experienced extreme stress as a result of the launch failures. What researchers who have faced failure need is not frustration and psychological pressure, but encouragement and hope that they will succeed in their next attempt. The aerospace industry is not one that is perfected with a single success; rather, it is an industry that secures technology by accumulating numerous failures and lessons learned through trial and error. Therefore, for South Korea to develop into a true aerospace powerhouse, it must invest in research and development from a long-term perspective—rather than demanding only short-term results—and create an environment where the experience and technology gained through failure can be applied to future challenges.