Space industry to usher in Saudi Arabia's 2nd boom: KAI

S. Korea's KAI signs an MOU with the Saudi Space Agency to join hands in boosting their space business

KAI Chief Executive Kang Goo-young (left) shakes hands with SSA CEO Muhammad al-Tamimi at an MOU signing ceremony on Oct. 24

Jae-Fu Kim 1

2023-10-25 13:43:45 hu@hankyung.com

Aerospace & Defense

Korea Aerospace Industries Ltd. (KAI) on Wednesday signed a memorandum of understanding with the Saudi Space Agency (SSA) to collaborate broadly in the space industry, which KAI's chief executive said would usher in oil-rich Saudi Arabia's second economic boom.

“The Middle East region is emerging as a new strategic market in the aerospace sector,” said Kang Goo-young, CEO of KAI, during the MOU signing ceremony with Muhammad al-Tamimi, his counterpart at SSA, in Riyadh, Saudi Arabia.

“Starting with this MOU, we will do our best to strengthen our strategic partnership with Saudi Arabia so that the space sector can lead the second boom in the Middle East.”

The preliminary agreement was reached during South Korean President Yoon Suk Yeol’s state visit to Saudi Arabia this week. Kang accompanied Yoon as part of his business delegation.

KAI Chief Executive Kang Goo-young (sixth from left), SSA CEO Muhammad al-Tamimi (sixth from right)

The MOU calls for KAI and SSA to join hands to develop space technology and run pioneering space industry projects, as well as to invest in new space-related startups.

They will form a working-level consultative body later and map out their cooperation plans in more detail.

Saudi Arabia been pursing space programs under its Vision 2030 initiative. Led by Mohammed bin Salman, the country's crown prince and prime minister, the program aims to stimulate its economy and diversify its revenue streams.

KAI's three-stage-to-orbit space rocket Nuri lifting off for its third launch on May 25, 2023

KAI has been leading the Korean government's aerospace and space projects for the past three decades.

In May, it successfully carried out its first project to launch a homegrown space rocket into orbit. It independently handled the entire process — design to production, testing and launch.

KAI is now ramping up efforts to develop miniaturized satellites for non-state enterprises that seek to jump into the space industry.

This past January, it unveiled a vision under which it aims to achieve 40 trillion won ($30 billion) in annual sales by 2050 and join the ranks of the world’s top seven aerospace companies.

Write to Jae-Fu Kim at hu@hankyung.com

Yeonhee Kim edited this article