Hanwha Aerospace Wins $71.5M Contract for South Korea’s Lunar Lander

Hanwha Aerospace Secures $71.5 Million Contract to Power South Korea’s Lunar Lander

This article summarizes reporting by Yonhap News Agency and The Korea Times.

Hanwha Aerospace has solidified its role as a central pillar in South Korea’s burgeoning space economy, securing a significant contracts to develop the propulsion system for the nation’s inaugural lunar landing mission. According to reporting by Yonhap News Agency and The Korea Times, the company signed a 103.3 billion won ($71.5 million) agreement with the Korea Aerospace Research Institute (KARI).

The contract, which was publicly announced on December 29, 2025, tasks Hanwha Aerospace with the design, manufacturing, and testing of the critical engine components required to guide a robotic lander to the moon’s surface. The project is scheduled to run through 2032, aligning with the South Korean government’s ambitious roadmap for lunar exploration.

Contract Scope and Mission Timeline

Under the terms of the agreement signed on December 24, 2025, Hanwha Aerospace will oversee the development of the lander’s propulsion module. As reported by The Korea Times, this system is considered the “heart” of the spacecraft, responsible for the most precarious phases of the mission: orbital maneuvers and the controlled descent to the lunar surface.

The scope of work includes:

• System Design: Engineering the propulsion architecture to withstand deep-space conditions.
• Manufacturing: Producing the main engine for braking and smaller thrusters for attitude control.
• Verification: Conducting rigorous performance testing to ensure reliability in a vacuum environment.

This contract is a key component of Phase 2 of South Korea’s Lunar Exploration Program. Following the successful operation of the Danuri orbiter in 2022, the country is now targeting a physical landing by 2032. The mission is overseen by the recently established Korea AeroSpace Administration (KASA).

Technical Specifications: The Bipropellant Advantage

According to technical details summarized in recent reports, the propulsion system will utilize a bipropellant mixture of Monomethylhydrazine (MMH) and Nitrogen Tetroxide (NTO). This specific fuel combination is distinct from the kerosene and liquid oxygen mixtures typically used in launch vehicles.

Yonhap News Agency notes that Hanwha Aerospace is currently the only South Korean entity possessing the proprietary technology to develop this specific type of system. The choice of MMH and NTO is strategic:

• Storability: Unlike cryogenic fuels, these propellants can be stored at room temperature, which is essential for long-duration spaceflight.
• Reliability: The mixture is hypergolic, meaning it ignites on contact without the need for an ignition system, providing the precise, restartable burns necessary for a soft lunar landing.

The propulsion system includes a main engine for deceleration and an attitude control system to maintain the lander’s orientation.

, Summary of technical specifications via Yonhap News

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AirPro News Analysis: Vertical Integration in Korea’s Space Sector

The following is analysis by AirPro News.

The awarding of this contract to Hanwha Aerospace signals a deliberate move toward vertical integration within South Korea’s space industry. Hanwha is not merely a component supplier; the company is also the prime contractor for the KSLV-III (Next-Generation Launch Vehicle), the rocket destined to carry this very lander into space.

By controlling both the launch vehicle (the “taxi”) and the lander’s propulsion (the “passenger’s engine”), Hanwha is effectively mirroring the integrated model popularized by SpaceX in the United States. This consolidation reduces interface risks between different manufacturers and streamlines the development supply chain. The market appears to agree with this strategy; following the announcement, Hanwha Aerospace’s stock price surged approximately 5-7% in early trading, reflecting investor confidence in the company’s long-term trajectory.

Market Reaction and Strategic Goals

The deal has been received positively by the financial markets. Reports indicate that the Korea Exchange lifted an “investment warning” designation on Hanwha Aerospace stock following the news, citing increased stability. The contract supports the broader national “Space Economy” goal, which envisions a private-sector-led industry capable of reaching the Moon by 2032 and Mars by 2045.

Hanwha’s track record includes the production of 75-ton liquid engines for the Nuri rocket (KSLV-II) and propulsion systems for the Arirang-1 satellite. This new contract extends that legacy beyond Earth’s orbit, cementing the company’s status as a comprehensive space solutions provider.

Frequently Asked Questions

When is the lunar landing scheduled?

The mission is currently targeted for 2032.

What is the value of the contract?

The contract is valued at 103.3 billion won, or approximately $71.5 million USD.

What fuel will the lander use?

It will use a bipropellant mixture of Monomethylhydrazine (MMH) and Nitrogen Tetroxide (NTO), chosen for its storability and reliability in space.

Sources

• Yonhap News Agency
• The Korea Times
• Chosun Biz