2025. 2. 13. 15:11ㆍKorean Economy
Satrec Initiative, which is set to launch a 0.3-meter ultra-high-resolution satellite next month, anticipates improved financial performance by expanding its satellite imaging service business. The company is the only one in South Korea with a history of exporting satellite systems and was acquired by Hanwha Group in 2021. It now plays a key role in Space Hub, Hanwha’s dedicated space division, alongside Hanwha Aerospace and Hanwha Systems.
According to industry sources on the 11th, Satrec Initiative plans to launch its self-developed optical satellite, SpaceEye-T, into orbit next month from the United States aboard a SpaceX launch vehicle. Developed in collaboration with Space Hub, SpaceEye-T is a 0.3-meter ultra-high-resolution commercial Earth observation satellite. A resolution of 0.3 meters means that the satellite can distinguish objects as small as 30 cm × 30 cm per pixel. The lower the resolution number, the sharper the image quality.
Optical satellites with 0.3-meter resolution are a technology level possessed by only a few satellite powerhouses, such as the United States, France, and Israel, and are capable of identifying people from space. While higher-resolution satellites are used for military purposes, there are currently fewer than ten satellites with this level of resolution in the civilian sector.
Despite steadily increasing revenue, Satrec Initiative has recorded net losses for three consecutive years: -7.7 billion KRW in 2022, -4.4 billion KRW in 2023, and -3.1 billion KRW in 2024. This was largely due to the underperformance of its subsidiaries, SIIS (responsible for satellite imagery sales) and SIA (focused on satellite image analysis), which negatively impacted profitability. However, financial analysts expect the successful launch of SpaceEye-T this year to turn the company profitable, forecasting over 10 billion KRW in operating profit. After its launch in March, SpaceEye-T will undergo an optimization process in the first half of the year before beginning full-scale satellite imaging services in the second half.
Satrec Initiative’s subsidiary SIIS currently exports satellite imagery to approximately 160 countries through sales rights for Korea’s multi-purpose Arirang satellites (KOMPSAT-2, -3, -3A, and -5), which are developed and operated by the South Korean government. The addition of SpaceEye-T to orbit is expected to drive new demand.
The global satellite imagery market is currently dominated by Maxar Technologies (U.S.) and Airbus (Europe), which together control 42% of the industry, generating annual revenue in the billions of dollars. While their satellites offer the same 0.3-meter resolution as SpaceEye-T, the latter is reportedly priced at only one-third of their products, giving Satrec Initiative a competitive edge.
The company’s subsidiary SIA is also expected to expand its satellite image analysis solutions business. SIA utilizes its proprietary artificial intelligence (AI) system to detect changes in satellite images and automatically generate analytical reports, which it provides to domestic and international military and intelligence agencies. Junseok Lee, a researcher at Hanyang Securities, stated, "While 1-meter resolution satellite images are sometimes distributed for free, 0.3-meter resolution images are in high demand, especially among government and military organizations. Due to the imbalance between supply and demand, these high-resolution images are priced at a significant premium."