However, it seems that only one bidder remains in the bidding for the KSLV-III project
South Korea's 2 trillion won ($1.5 billion) next-generation launch vehicle project has started with difficulties in choosing the organization that will lead this massive task.
The project, called Korea Space Launch Vehicle-III, was developed with the goal of creating a launch vehicle capable of delivering a lander to the Moon by 2032. This advanced rocket is expected to have three times the power of the Nuri rocket, which has proven South Korea's ability to successfully launch a 1 metric ton satellite into orbit.
Initially, a competition was planned between Hanwha Aerospace and Korea Aerospace Industries (KAI), with the participation of Korean Air, to select the lead company for the project. All three companies took part in the presentation of the project last year.
However, on February 15, Korean Air announced that it would not participate in the tender — the company has already collaborated with KAI to develop a regional satellite navigation system.
Previous state large-scale tenders to select the leading company to modernize its own Nuri»missile» and ensuring its four launches until 2027 were the subject of a dispute between Hanwha Aerospace and KAI, won by Hanwha in December 2022.
KSLV-III was expected to become a new field of competition between Hanwha and KAI. However, the tension eased when KAI unexpectedly announced its decision not to participate in the tender on February 21, the last day for submitting bids.
In its statement, KAI explained that it has decided to develop an independent space mobility business strategy based on the «Global Vision 2050» and focus on entering the global space market. At the heart of this strategy is the development of forms of space mobility, such as reusable launch vehicles with great commercial potential, as well as launch vehicles based on multi-mission cargo aircraft and satellites, demanded in the new era of the space industry.
KAI announced plans to invest 4.5 trillion won ($3.7 billion) in research and development until 2032, with the goal of achieving annual revenue of 40 trillion won ($34.2 billion) by 2050 and becoming one of the seven largest aerospace companies in the world. The company said it is willing to join the nation's next-generation launch vehicle project as a participant rather than a lead organization. Given the importance of the space program to South Korea and ten years of experience in developing key components of launch vehicles since 2014, the company has committed to making efforts to successfully implement the new project.
The Public Procurement Service first announced the tender in November last year, and the Ministry of Science and Information Technology has set a deadline for selecting the preferred bidder by the end of February and official confirmation of the lead company for the development of KSLV-III in March. However, given KAI's decision to reject the bid, the public procurement office was forced to re-invite the tender on February 22, setting a new bidding date of March 4 to 6. If Hanwha Aerospace is again the sole bidder, the contract will be awarded to the company as the sole supplier. Hanwha has expressed its intention to participate in the re-tender.
Representatives from the Ministry of Science and Information Technology and the Korea Aerospace Research Institute (KARI) stressed that the delay in the tender will not affect the overall project schedule.
However, concerns have arisen in the space research industry and among experts about possible obstacles to the development of the next generation of launch vehicle.
«Unlike the “Nuri” rocket project, where a private company took over the development of the launch vehicle after the initial government phase, the next generation — the first, where the government planned to attract private firms in the initial stages. The government probably counted on greater interest and possibly greater competition from private companies», — stated anonymously a professor specializing in the aerospace industry.
An anonymous representative from the space industry noted that the final confirmation of the tender process may be delayed until April: «When Hanwha becomes the sole bidder for the contract, the negotiation period may be extended to 25 days. The government hopes to sign the contract by the end of March, but this could be done in April and affect the schedule.