Overview

Table 1: South Korea total aerospace market size, production, exports, and imports from 2019 to 2024.

Source: Korea Aerospace Industries Association (KAIA), Unit: USD Million. I USD =1,350 KRW

Total Market Size and Total Local Production refer to South Korea’s local aerospace manufacturing companies’ output. Data on Exports and Imports are based on purchasing order and contract amount.

South Korea is the United States’ 11th largest market for aerospace exports according to the latest U.S. Department of Commerce data as of October 2025. According to the latest U.S. trade data, the United States’ aerospace exports (HS 88) to South Korea totaled $3.4 billion in 2024. While civilian aircraft, engines and parts made up 84 percent of the exports valued at $2.8 billion, other items included powered aircraft, spacecraft and launch vehicles, as well as various parts of aircraft. While the volume has been extremely small, the United States has been exporting unmanned aircraft to Korea since 2022, and the volume has been gradually increasing. U.S. Census data from 2022 to 2024 reveals that average yearly unmanned aircraft exports to Korea were valued at approximately $150,000.

Table 2: South Korea aviation imports and exports for aircraft platforms and components from 2021 to 2024 in millions of USD.

Source: Korea Aerospace Industries Association (KAIA), Unit: USD Million.

South Korea’s aerospace industry is largely driven by major players such as Korean Air and Korea Aerospace Industries (KAI). Korean Air is the largest commercial airline and national carrier of South Korea. KAI manufactures and assembles parts and components for Boeing and Airbus, and they also design, develop, and produce aircraft using homegrown technology including rotor-wing and fixed-wing aircraft and unmanned aerial vehicles (UAV).

In addition, maintenance, repair, and overhaul (MRO) services for commercial and defense aircraft is another key area where KAI and Korean Air have a substantial presence. Korean Air, being the only commercial airline equipped with an in-house MRO facility with matching capabilities, provides maintenance services for its own fleet.  In 2018, KAI established a subsidiary MRO company known as the Korea Aviation Engineering and Maintenance Service (KAEMS) to provide MRO services for the civil aerospace industry. Headquartered in Sacheon, South Gyeongsang Province (Gyeongnam), KAEMS is a designated MRO service provider by the Ministry of Land, Infrastructure, and Transport (MOLIT) and shares ownership with the Korea Airport Corporation.

While South Korea continues to source most of its key aircraft parts and components from overseas, the government is seeking for ways to support and develop its MRO market using homegrown technology. In the Gyeongnam region, there are more than 100 small and medium-sized aerospace companies specializing in aviation, aircraft assembly, mechanics, and mechatronics forming an aerospace industry cluster. Aerospace companies in this region manufacture and supply parts and components to KAI and Korean Air, and export overseas.

Space Industry

In the space domain, South Korea is continuing to expand its investment focusing on the development of indigenous space technology. With plans to strengthen defense capabilities in outer space, the Defense Acquisition Program Administration (DAPA), the country’s defense procurement agency, plans to invest $13.6 billion over the next 10 years. This includes an investment of $1.3 billion by 2030 for developing core space technologies used in military satellites and launch vehicles.

In June 2022, South Korea successfully test-launched Nuri – the first indigenously developed three-stage launch vehicle. In August 2022, South Korea witnessed another success in launching their Korea Pathfinder Lunar Orbiter (KPLO) Danuri aboard Space X’s Falcon 9 which marked its first-ever lunar mission. In May 2023, South Korea succeeded again in launching its third space rocket which helped launch 8 small satellites into orbit. South Korea became the 7th country in the world to demonstrate its indigenously developed launch capabilities.

On May 30, 2024, South Korea launched its first ever space agency, Korea Aerospace Administration (KASA). KASA brings together the previously scattered space-related programs under one roof and aims to lead national space affairs, oversee commercial space activities and support international cooperation. KASA’s long-term goal is to send a lander to the moon by 2032 and to Mars by 2045.

KASA aims to help South Korea create a space economy and become a top five space power. Such ambitions are to be supported by significant government funding that is about $72.5 billion by 2045. KASA’s budget for 2025 is $742 million (965 billion won) which is approximately a 27% increase from 2024. Key focus areas include new space launch services (space transportation), creating an ecosystem for developing and utilizing satellites, space exploration, and future aviation. Projects include the development of next-generation launch vehicle technology, launching multi-purpose satellites and a lunar orbiter, and the development of a satellite navigation system, also known as the Korea Positioning System (KPS).

In April 2025, South Korea has successfully launched its 4th military reconnaissance satellite in orbit from a U.S. base to bolster its satellite surveillance capabilities to monitor North Korea. South Korea first launched its military reconnaissance satellite in December 2023, second in April 2024, and the third in November 2024. The fifth satellite is planned to be launched during the latter half of 2025. Also known as the 425 Project, the series of satellite launches is a multiyear initiative with a total budget of 1.3 trillion won ($916 million). Overall, South Korea plans to acquire 60 small and micro-sized satellites by 2030 so that the military can monitor the Korean peninsula every thirty minutes.

Commercial Airliners and Airports

Korean Air is the largest passenger and cargo carrier company in the country, as well as the largest domestic consumer of aircraft, equipment, parts and components, and services. Korean Air is also a major exporter of aerospace parts and components. South Korea’s second largest airline, Asiana Airlines was acquired by Korean Air in December 2024.

Low-Cost Carriers (LCCs) have demonstrated rapid growth in the South Korean market over the past few years. As of 2026, there are 8 LCCs operating within the country. While most of these LCCs initially focused on providing flight services for domestic routes, LCCs have diversified their reach and are actively introducing new international routes with higher demand for travel.

South Korea has also witnessed an increased demand for use of private jets and related services since the pandemic. While the general use of private jets and services is not as common for regular travelers, there has been a spike in the use of such services particularly among business executives.

There are two public airport companies in Korea: The Incheon International Airport Corporation (IIAC) and the Korea Airport Corporation (KAC). IIAC owns the nation’s largest international airport with operations based in Incheon City. KAC operates and manages a total of 14 airports across the country which includes: Gimpo, Gimhae, Jeju, Gwangju, Cheongju, Yangyang, Muan, Ulsan, Yeosu, Sacheon, Pohang-Gyeongju, Gunsan, and Wonju. Seven of them are international airports with routes mainly connecting Japan, China and other neighboring countries in the region.

Opportunities

Top U.S. aerospace export items to South Korea include commercial aircraft, aircraft engines, equipment and parts, as well as military aircraft and their parts and components. The U.S. continues to be the leading foreign supplier of key aerospace and defense products and services, taking up a prominent share of South Korea’s import market.

In conjunction with the rapid development of unmanned aerial systems (UAS) technology along with their demonstrated power and tactical effectiveness in battlefields, UAS and counter-UAS technology are considered as the next emerging market where American manufacturers may find business opportunities in South Korea. While there is still a heavy focus on growing and favoring domestic technology and products, there still seem to be limited opportunities for foreign suppliers seeking to tap into the market with their cutting-edge systems.

South Korea’s space market also presents limited opportunities for foreign suppliers especially in satellite launching services, high-tech sensors, and optical devices for payload systems.

Best Products/Services

• Aircraft and aircraft upgrades
• Radar and surveillance devices
• Avionics
• High-tech mission equipment and components, sensors, optical devices for aircraft
• UAS and counter-UAS

Resources

Trade Shows

• Seoul International Aerospace and Defense Exhibition (ADEX) 2025, October 2027

Key Contacts

• Korea Aerospace Industries Association (KAIA)
• Korea Aerospace Research Institute (KARI) 
• Ministry of National Defense (MND)  
• Ministry of Science and ICT (MSIT)
• Ministry of Land, Infrastructure, and Transport (MOLIT)
• Incheon International Airport Corporation (IIAC)
• Korea Airport Corporation (KAC)

Local Contact

U.S. Commercial Service Korea
U.S. Embassy Seoul
188 Sejong-daero, Jongno-gu
Seoul 03141 Korea
Tel: 82-2-397-4186
www.trade.gov/south-korea
office.seoul@trade.gov