The UK government recently set a new contract record with the European Space Agency (ESA), securing £844 million since 2022. But in an increasingly competitive market, is the United Kingdom reaching its full potential?
In a bold move to stake its claim in the global space race, South Korea launched its new space agency, the Korea Aerospace Administration (KASA), in May 2024. With a staggering investment pledge of 100 trillion won ($72.6 billion) by 2045, the country is making a serious play to become a major player in space. This level of commitment, averaging $3.63 billion per year, is five times Korea’s previous space budget and 4.5 times larger than the UK Space Agency’s investment.
As South Korea accelerates towards its goal of becoming a top-five space power, the United Kingdom, with its historic contributions to space exploration, finds itself at a crossroads. With the National Space Strategy likely up for review and the 2025 Council of Ministers meeting poised to determine future ESA contributions, UK policymakers could take some inspiration from South Korea’s approach.
As South Korea accelerates towards its goal of becoming a top-five space power, the United Kingdom, with its historic contributions to space exploration, finds itself at a crossroads.
Though a relative latecomer to the space race, South Korea has quickly built a robust aerospace sector. In 2023, it became the seventh country to independently launch a homegrown satellite using an indigenous rocket, the Nuri launch vehicle. With seven more Nuri launches planned by 2027, work underway on a reusable launch vehicle (KSLV-3) for the mid-2030s, and a commercial launch price target of $1,000 per kilogram, Korea is positioning itself as a serious competitor in space transportation. Korea’s investment in space, while still considered mid-tier among global players, is growing rapidly. In 2023, its space budget accounted for 0.00035 percent of GDP—higher than the United Kingdom’s 0.00025 percent but still behind heavyweights like the United States (0.243 percent) and France (0.097 percent). However, with KASA’s aggressive funding plans, Korea is on track to close this gap fast.
President Yoon Suk-yeol has made it clear that space isn’t just about prestige—it’s about economic growth. His administration’s goal is to make space a pillar of Korea’s economy. By 2045, Korea aims to have 1,000 space companies, generate over 100,000 jobs, and expand its global space market share from 1 percent to 10 percent. Backing this vision, KASA announced an 806 billion won ($595 million) research and development budget for 2025, a 43 percent increase from the previous year, highlighting Korea’s willingness to invest in innovation even amid economic uncertainties.
One key lesson from Korea is the need to regularly rethink international collaboration. The United Kingdom understandably relies heavily on ESA, with 75 percent of its space budget allocated to the agency in 2022. While this provides access to major multinational projects that it could not fund on its own, it may make the United Kingdom vulnerable to shifting political dynamics within Europe, particularly after Brexit. Korea’s approach—balancing national programs with strategic bilateral partnerships (e.g. its Danuri lunar orbiter working alongside NASA)—could offer a more resilient model. Additionally, Korea has a defined roadmap, with plans for lunar and Mars missions, a solar observation spacecraft, and a regional navigation system. In contrast, the United Kingdom’s National Space Strategy lists broad priorities but lacks concrete milestones, particularly in areas like Earth Observation (EO) and advanced manufacturing.
Another crucial difference is the scale of investment. In 2023–24, Korea and the United Kingdom had similar public space investments as a share of GDP, but Korea has since dramatically increased its budget, recognizing space as a high-growth sector with both civil and military applications. If the United Kingdom wants to keep pace, it must reassess its financial commitments in the upcoming spending review. Furthermore, Korea has made space a national priority, securing political backing and industry support. The United Kingdom, by contrast, has yet to articulate a long-term vision that its industry feels a part of. Without a modern and compelling national space narrative, the United Kingdom risks falling behind in an increasingly competitive global market.
The United Kingdom is at a pivotal moment. With the upcoming ESA budget negotiations and a new government in place, the UK space ecosystem has the opportunity to chart a more ambitious course. Korea’s rapid ascent in the space sector proves that commitment, investment, and strategic partnerships can yield remarkable progress in a short time. And this successful strategy could be a useful roadmap to follow if the United Kingdom wants to remain a serious space player.
Source: rand.org
