Space Solution, a South Korean space and satellite components manufacturer, received the first investment from a government-backed space fund.
Space Solution, which participated in the development of Korea’s first domestically built space launch vehicle Nuri, signed an investment deal worth 8 billion won ($6.1 million) with venture capital firm Medici Investment on Dec. 20, according to people with knowledge of the matter. Medici Investment manages the New Space Fund, a government-backed fund that aims to foster the domestic space industry.
New Space Fund is the first space-related fund created by the government, following President Yoon Suk Yeol’s promise to support private space startups in February. The government-backed fund-of-funds was established in September with a total of 10 billion won, with the government investing 5 billion won and the private sector adding 5 billion won.
Space Solution develops fluid control components and systems for launch vehicles and satellites. The company has been involved in the development of the thrust system for the third stage engines of Nuri and the propulsion system for the Multi-Purpose Satellite.
The company also makes key components for launch vehicles, such as valves and propellant tanks that can withstand cryogenic temperatures of minus 200 degrees Celsius.
“In the space industry, verifying component performance through actual launches is of utmost importance,” said Park Seong-san, a Medici Investment advisor who led the investment. “Space Solution has proven its technology through multiple projects and is well positioned to enter the space industry in the future.”
