SpaceX’s Starlink, Eutelsat’s OneWeb land in Korea for LEO satellite services

South Korea has officially cleared the way for low-earth orbit (LEO) satellite internet services, granting regulatory approval for SpaceX’s Starlink and Eutelsat’s OneWeb to operate in the country.

The Ministry of Science and ICT said on Friday that it has approved three cross-border agreements on LEO satellite communication services, including Starlink Korea LLC’s deal with parent Space Exploration Technologies Corp., better known as SpaceX, and partnerships between domestic operators Hanwha Systems Co. and KT SAT with Eutelsat, which runs OneWeb services.

KT SAT is Korean telecom giant KT Corp.’s satellite service operator.

The move comes as Tesla CEO Elon Musk’s SpaceX has ushered in a commercial space age, where private companies are making aggressive forays into the space industry, once dominated by government agencies across the globe.

Under Korean law, foreign telecommunications companies are prohibited from offering services directly to end-users without such agreements in place with local license holders.

With the green light granted, commercial operations could begin as early as next month, pending final equipment certification, officials said.

Starlink Korea, which was already registered as a key telecommunications business since its incorporation in 2023, is expected to soon begin rolling out its services. OneWeb is also said to be preparing to launch its Korean operations within weeks.

KOREA’S ENTRY INTO RACE FOR HIGH-STAKES 6G SERVICE

The move signals not only a significant shift in Korea’s telecoms market –long dominated by three majors SK Telecom Co., KT and LG Uplus Corp. – but also the country's entry into the high-stakes race for leadership in 6G infrastructure, where LEO constellations play a pivotal role.

KT SAT currently operates its own geostationary satellite, Mugunghwa, for satellite communication services in Korea. Its services are primarily used by the military, government agencies, broadcasters, ships and offshore facilities.

Operating at an altitude of 35,000 km, KT’s geostationary satellites provide stable but relatively slow communication services.

By contrast, Starlink and OneWeb operate satellite networks positioned between 200 and 2,000 kilometers above Earth, providing low-latency, high-speed internet.

While their current speeds and costs fall short of ground-based fiber on land, their advantages lie in coverage, using a constellation of satellites, particularly across aircraft, maritime and remote locations where Korea’s conventional carriers have limited reach.

According to the satellite tracking website Orbiting Now, Starlink has launched over 7,100 low-orbit satellites as of the first quarter. Starlink is used by four million people in over 100 countries and is estimated to have generated 9 trillion won ($6.5 billion) in sales last year.

Analysts said Korea’s domestic telecoms market is expected to experience a ripple effect as the two new entrants target niche segments, functioning as a disruptive force amid a stagnant competitive landscape.

Industry watchers highlight the potential of direct-to-cell (D2C) and inter-satellite laser (ISL) communication technologies to reduce latency and costs, with some suggesting that LEO networks could eventually rival, or even replace, terrestrial cellular networks in certain applications.

A GEOPOLITICAL ASSET IN NEW SPACE RACE

The military significance of LEO satellite systems looms just as large.

Starlink played a critical role in Ukraine’s battlefield communications after Russian strikes destroyed ground infrastructure.

Analysts said that Ukraine’s defense efforts would have collapsed without the network.

Since the outbreak of the Russia-Ukraine war, the US incorporated Starlink into broader military architecture, including the Pentagon’s Starshield program for reconnaissance and secure data collection.

Korea’s approval of Starlink and OneWeb also comes amid broader geopolitical maneuvering.

Reports from the Washington Post earlier this year revealed that the Trump administration had leveraged market access to promote US satellite companies as part of trade negotiations, with Vietnam and India being prominent examples.

China has also entered the fray, launching the first batch of satellites for its GuoWang constellation last year to deploy 13,000 LEO satellites by 2035.

The European Union is pouring more than 15 trillion won ($10.9 billion) into IRIS2, a multi-orbit satellite initiative aimed at reducing its reliance on US and Chinese infrastructure.

HANWHA LEADS KOREA’S LEO INTERNET SERVICE MARKET

In August 2021, Hanwha Systems, the defense and air mobility unit of Hanwha Group, acquired an 8.8% stake in OneWeb for $300 million to expand its presence in the growing commercial space market.

With the investment, Hanwha also had a seat on OneWeb’s board.

The London-based multinational global communications company’s investors include the UK government, Indian telecom firm Bharti Global, Japan’s internet giant SoftBank, US antenna maker Hughes Network Systems and French satellite operator Eutelsat.

Korea Aerospace Industries Ltd. (KAI) has partnered with Airbus SE, a European multinational aerospace company, in the satellite business to capture the burgeoning private-sector aerospace market.

Write to Seung-Woo Lee and Kyoung-Ju Kang at leeswoo@hankyung.com

In-Soo Nam edited this article.