SEOUL, South Korea — South Korean satellite developer Lumir saw its share decline steadily following a brief rally on its first day of trading.
Since going public on South Korea’s KOSDAQ exchange Oct. 21 to raise capital for a constellation of synthetic aperture radar (SAR) imaging satellites, shares in Lumir have fallen, closing Oct. 28 at 9,120 won ($6.59), down 24 percent from its initial public offering (IPO) price. The closing price gives the company a market capitalization of 156.4 billion won, or roughly $110 million.
Lumir said in early October it had seen lower-than-expected interest in its IPO, leading to a share price of 12,000 won, much lower than the 16,500-20,500 won range it offered to investors. The offering raised about 30 billion won for the company, according to Lee Bong-eun, deputy president of Lumir.
“I feel that investors are skeptical about the growth potential of the space sector,” Lee told SpaceNews. “There have been cases that disappointed them.” She referred to the IPOs of small launch vehicle startup Innospace and ground station services provider Contec, both of which have seen their shares remain well below their IPO prices.
“This lower-than-expected performance is expected to continue for a while,” Lee said. “But it is only a matter of time before we see a rebound as our technology and business advance.”
Jeong Ji-soo, an analyst at Meritz Securities, attributed the company’s relatively low valuation to “investors’ weak confidence in the domestic space sector” rather than Lumir’s performance.
Constellation of 18 SAR satellites by 2030
Established in 2009 by Nam Myoung-yong, a PhD in Electronics, Lumir has built a heritage as a key payload and subsystem supplier for South Korea’s state-funded satellite projects, including the CAS500-1 satellite, launched in March 2021 aboard a Soyuz rocket.
The company’s first SA R satellite, LumirX-1, with a 0.3-meter resolution, is set to launch into low Earth orbit in early 2026 aboard a SpaceX Falcon 9 rocket for in-orbit demonstration of applied technologies. The radar for the first satellite underwent rounds of airborne testing, capturing images from an aircraft flying five kilometers above the ground.
Lumir plans to build a constellation of eighteen SAR satellites by 2030, offering up to 0.15-meter resolution images.
“The lion’s share of the fund raised by the IPO will go to building a facility that will manufacture SAR satellites for the constellation, with a capacity of up to four a year,” Lee said. “The facility will also produce satellite buses, image processors and other systems, enabling us to make everything for the constellation on our own.”
Lumir sees the Korean government as its primary customer.
“We are observing a sharp increase in [domestic] demand for high-resolution SAR images,” Lee said. “We will jump-start our growth engine with this, and then will go overseas.”
Military needs largely drive South Korea’s domestic demand for SAR satellites. Under the space-based surveillance initiative, called ‘425 project,’ the Korean military aims to launch one electro-optical infrared (EO/IR) satellite and four SAR satellites into low Earth orbit by 2025 to monitor nuclear-armed North Korea. Two of these satellites — an EO/IR and a SAR — are already in orbit. In addition, the South Korean military reportedly plans to launch up to 20 smaller SAR satellites between 2026 and 2028 and 40 more between 2028 and 2030 to ensure near-real-time surveillance of key facilities in North Korea. Commenting on Lumir’s prospects, the Meritz Securities analyst noted that while domestic competitors like Hanwha Systems, Korea Aerospace Industries (KAI), and LIG Nex1 exist, the demand is substantial enough to leave room for Lumir.
