First public satellite project to use private-sector procurement model
Next-generation land observation system to be established
A development project for Land Satellites 3 and 4, led by the Ministry of Land, Infrastructure and Transport, has passed a preliminary feasibility review. The government plans to invest a total of 312.9 billion won ($228 million) and launch the third satellite in 2030 and the fourth in 2031, applying for the first time in a public satellite project a procurement model in which private companies directly develop, manufacture and supply the satellites.
According to the Ministry of Land, Infrastructure and Transport on Friday, Land Satellites 3 and 4 are next-generation land observation satellites designed to ensure continuous monitoring of the country's territory in preparation for the eventual end of service of Land Satellites 1 and 2 — also known as Next-Generation Medium Satellites 1 and 2. The ministry plans to improve the observation swath, resolution and imaging methods of the new satellites beyond those of their predecessors.
The feasibility review result carries significance beyond simply confirming the need for successor satellites. It represents official recognition that the land satellite program has become an irreplaceable data infrastructure for managing the nation's territory and serving the daily lives of its citizens.
The projected benefits of the Land Satellite 3 and 4 development project were estimated at approximately 471 billion won, based on actual usage cases and accumulated performance data from Land Satellite 1. The benefit-to-cost ratio came in at 1.11, demonstrating economic viability for a domestic satellite development project.
Imagery from Land Satellite 1 has been in regular service since December 2021, supporting applications in land change monitoring, facility management, agricultural and forestry management, disaster response and spatial data construction. The number of images provided to central government agencies, local governments and public institutions — or made available directly to the public — reached about 1.6 million as of the end of 2025.
The economic analysis is considered significant because it translates the satellite's real-world performance into concrete monetary benefits, and is expected to serve as an objective case study demonstrating the value of public satellites.
The Land Satellite 3 and 4 project also marks a major shift away from the traditional state-led research and development model. Under the new approach, the government defines the required mission and performance specifications while private companies develop, manufacture and supply the satellites under a procurement framework.
This is the first time such a model has been applied to a public satellite project. It represents a new public satellite procurement model that leverages the technological capabilities and market competitiveness of private companies to secure the needed satellites in a timely manner.
As a government-driven satellite market takes shape, private companies are expected to refine their technical capabilities through the process of developing and delivering satellites, while also building a foundation for entering overseas markets — contributing to the vitality and competitiveness of the domestic satellite industry.
As the first satellite procurement project of its kind, this initiative is expected to expand private-sector participation in future public satellite programs and encourage greater government satellite purchasing. It is also expected to set guidelines for subsequent public satellite procurement projects.
Following the feasibility clearance, the ministry plans to finalize a detailed project implementation plan by the end of this year and begin full-scale work in 2027, making careful preparations to keep the launch schedules for Satellites 3 and 4 on track.
Meanwhile, Land Satellite 2, launched in May, is currently undergoing test operations including functional checks and image calibration and validation. It is scheduled to enter full public service alongside Satellite 1 starting at the end of this year. The calibration and validation process involves confirming the performance of onboard instruments and image quality during test operations, and correcting positional, geometric and radiometric errors in raw imagery to ensure it meets design specifications.
Kim Won-dae, director general of the National Geographic Information Institute, said the feasibility approval "is the result of recognition that the land satellite program is a core national infrastructure essential to government administration and public services, as well as an asset with genuine economic value." He added that the result "is all the more meaningful because economic viability was demonstrated on the basis of actual performance data from Land Satellite 1."
Kim also said Land Satellites 3 and 4 represent "a new attempt to actively bring the outstanding satellite development capabilities of private companies into the public sector," and that the ministry would "work to successfully carry out this project, expand high-quality satellite imagery and spatial information services that citizens can feel in their daily lives, and contribute to the sustained growth of the domestic satellite industry."
hss@heraldcorp.com