"Space? Can You Really Make Money From That?" How Elon Musk Makes Money With Rockets [fn Insight]

Jeong Ui-hun, senior researcher at Eugene Investment & Securities, whom Noh Dong-il, editor-at-large at Financial News, met on the 14th, emphasized, "The space industry is no longer a far-off fantasy. It is rapidly being reorganized into a realistic, high value-added industry that encompasses rocket transportation, communications networks, and data processing. It is entering a business domain that can generate enormous profits." He added, "For Korea as well, this is a crucial moment to secure budgets and technologies to activate the space industry ecosystem." This conversation can be viewed on the Financial News YouTube channel "fn Insight."

One of the main revenue sources for SpaceX, the U.S. space development company Elon Musk founded in 2002, is its rocket launch business. Jeong explained, "A rocket is essentially a means of transportation, and SpaceX earns revenue by sending customers' satellites or cargo into space," adding, "Much like Coupang's Rocket Delivery service, the customer provides the goods (satellites), and SpaceX is responsible only for the transportation (launch)."
SpaceX currently commands an overwhelming share of the commercial rocket launch market. In 2023, SpaceX carried out 165 launches, nearly half of all human rocket launches that year, which totaled 324. The commercialization of reusable rocket technology has been a key factor in maximizing SpaceX's profitability. Jeong noted, "In the past, rockets would either fall into the ocean after launch or be recovered in a very limited way, but now it has become standard for the launched rocket to return and land vertically with precision."

Another core business SpaceX is pursuing is Starlink, a project to build a global communications network using satellites. Jeong said, "Its structure is the same as that of a typical telecom operator, which provides communication services to subscribers and charges fees, but Starlink has dramatically improved service quality by using low Earth orbit satellites." The service offers major advantages in regions with poor communications infrastructure, and Starlink now has more than 10 million subscribers.

Where does Korea stand in the age of the space industry? The country has proven its independent space technology capabilities through the successful launch of Nuri (KSLV-II), but it now faces the harsh task of narrowing the gap with surrounding space powers.
Jeong pointed out, "Korea began with technological cooperation from Russia and has now achieved the development of Nuri entirely with our own technology," adding, "Hanwha Aerospace is currently taking over Nuri's technology and is at the center of private sector–led growth, while Satrec I in satellite manufacturing and Intellian Technologies in antennas are forming a value chain."
However, there are lingering concerns that Korea may fall behind, as it is surrounded by overwhelming space powers such as the United States of America (U.S.), China, Japan, and Russia.
Ultimately, Jeong believes that bold national budget support and an expansion of private-sector contracts are essential to build a space industry ecosystem. He stressed, "Until private companies can stand on their own, the state must first play the role of 'Old Space' by commissioning projects and laying the groundwork for technological progress," and continued, "Like SpaceX, we need to shift to mass production and create demand for larger rockets. Strategic government support and bipartisan cooperation across party lines will determine the future of Korea's space industry."

fair@fnnews.com Han Young-jun Reporter