Starlink's entry into S. Korea triggers push for independent satellite networks

SEOUL, December 08 (AJP) - SpaceX’s Starlink has formally entered the South Korean market, prompting domestic space and defense companies to reassess strategy amid growing concerns over dependence on foreign low-earth orbit (LEO) satellite networks for communications and military operations.

Industry sources said Monday that Hanwha Systems, a major South Korean space and defense contractor, is reviewing its satellite communications plans as Starlink’s commercial rollout gathers pace. In June, the company sold its stake in European satellite operator OneWeb for 120 billion won, after acquiring the shares in 2021 for about 300 billion won, citing weak investment returns.

Despite retaining exclusive rights to operate a military satellite network linked to OneWeb until 2030, the long-term viability of the partnership remains uncertain, underscoring pressure on South Korea to build an independent LEO satellite capability.

The strategic value of LEO constellations has been highlighted by the Russia–Ukraine war, where Starlink terminals have been used to support Ukrainian military operations, including drone control and battlefield communications.

“Dependence on foreign core technologies can create structural vulnerabilities,” said Park Joo-hong, a professor in the IT Convergence Engineering Department at POSTECH. “Independent satellite development is especially critical for defense applications, where secure control and data management are essential.”

Starlink operates more than 8,000 satellites and provides download speeds of up to 500 megabits per second. The service now has more than 8 million users across roughly 150 countries, and its low-latency connections have driven rapid adoption by commercial customers.

In South Korea, Starlink has signed a supply agreement with Hanjin Group. Five affiliated airlines, including Korean Air and Asiana Airlines, plan to replace existing geostationary satellite services from Panasonic with Starlink-based in-flight Wi-Fi by the third quarter of next year.

Industry experts warn that reliance on foreign networks could pose long-term security and sovereignty risks. They say South Korea needs to develop a private sector-led satellite ecosystem combining domestic launch capabilities and satellite manufacturing to reduce strategic dependence.

Analysts estimate that at least 100 LEO satellites would be required to establish a viable independent network.

The South Korean government is accelerating efforts to build domestic capacity. The Ministry of Science and ICT plans to invest 320 billion won by 2030 to develop a national LEO satellite communications system, including two satellites and ground infrastructure.

Hanwha Systems is also expanding work on space-grade semiconductors and related infrastructure, including facilities at the Jeju Space Center.

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.

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