As SpaceX moves toward a potential mega-IPO, the Asian commercial space race is heating up. South Korean rocket startup Unastella recently completed a $24 million Series B funding round, bringing its total funding to $44 million, and plans to continue advancing its self-developed rocket and small satellite launch business.
Total funding increased to $44 million
The company, founded four years ago and headquartered in Seoul, was reportedly led by Altos Ventures, with participation from the Korea Development Bank, Strong Ventures, Hana Ventures, and other institutions, according to TechCrunch.
Unastella has not yet generated revenue, but investors are betting on its future launch plans and commercialization path. The company states that its short-term goal is to validate its technology and business model through orbital launches, while its long-term goal is to consider manned suborbital flights.
Launch completed in South Korea
In May 2025, Unastella launched its domestically developed rocket, UNA EXPRESS-I, from South Korea. The company viewed this mission as an end-to-end systems test, covering design, manufacturing, ground operations, and flight data.
The company currently focuses on small satellite launch services and develops its own launch vehicles and engines. Its propulsion system uses a combination of kerosene and liquid oxygen, which is one of the more mature technologies in the aerospace field. SpaceX's Falcon series also uses this solution.
Unlike traditional approaches, Unastella uses electric pumps instead of turbopumps. This results in a simpler structure and lower cost, but at the cost of a heavier system and a reduced payload capacity. Company founder and CEO Jae Park stated that this trade-off was made to expedite commercial market entry rather than pursuing the "most powerful rocket" in terms of specifications.
The next launch will target a range of 100 kilometers.
Unastella considers UNA EXPRESS-II, planned for this year, as a key mission for the next phase. Jae Park stated that reaching an altitude of 100 kilometers would be a significant milestone for the company in advancing its collaborations and is expected to attract the attention of major South Korean aerospace and defense companies.
Currently, this company with only 22 employees has established contact with the Korea Aerospace Center (KCAS). KCAS carried components aboard UNA EXPRESS-I, and the Korea Aerospace Research Institute (KARRI) has also transferred electric pump-related technologies to KCAS.
South Korea's commercial launches are still in their infancy.
South Korea's commercial launch industry is still in its early stages, but a competitive landscape is gradually taking shape. Hanwha Aerospace, having acquired full technology rights from the Korea Aerospace Research Institute (KARRI), has taken over the government-led Nuri rocket project.
Meanwhile, two other South Korean startups are also in the competition: Innospace, already listed on the Korea Exchange, and Perigee Aerospace, which is developing the Blue Whale rocket. However, none of these companies have yet completed a commercial orbital launch.
South Korea established its National Space Agency (KASA) in 2024 and pledged to invest $266 million over seven years to build launch infrastructure, demonstrating the government's push for private companies to play a greater role in the country's space industry.
Additional information:According to data from Grand View Research, the global space launch market was worth approximately $15 billion in 2023 and is projected to grow to $41 billion by 2030.
