Unastella: South Korean Rocket Startup Raises $24M in Funding from Local Investors

As SpaceX nears what could become the largest IPO in history, the race to develop next-generation launch vehicles is heating up, especially in Asia. Startups in Australia, India, Japan, and South Korea are keen to secure a foothold in a market that has traditionally been dominated by the U.S. and China.

Among these startups is Unastella, a South Korean company founded four years ago that has just completed a $24 million Series B funding round, bringing its overall funding to $44 million. The company successfully launched its rocket, the Una Express-I, from South Korean soil in May 2025.

Located in Seoul, Unastella is dedicated to creating its own launch vehicles and engines, focusing particularly on small satellite launch services. Founder and CEO Jae Park informed TechCrunch that the immediate aim is to validate its technology and business model through orbital launches, while the long-term goal is to enable crewed suborbital spaceflights.

Unastella utilizes a propulsion system fueled by kerosene and liquid oxygen, a reliable combination in rocket engineering, similar to SpaceX’s Falcon series. Instead of a traditional turbo pump, the company has chosen an electric motor pump, offering a more straightforward and cost-efficient solution akin to Rocket Lab’s successful projects.

However, this decision comes with a trade-off related to payload capacity. Electric motor pumps tend to be larger, resulting in reduced capacity for satellites. Park pointed out that this is a calculated strategic choice.

“We’re not just an R&D team trying to create the most advanced rocket,” Park said. “We’re a commercial launch entity focused on fast market entry.”

Park also highlighted that Unastella handles all operations in-house, covering design, manufacturing, ground operations, and flight data gathering. The UNA EXPRESS-I launch last year marked the first comprehensive real-world test of their entire system, as noted by Park.

With a wealth of experience in rocket engine development, Park previously worked on combustion systems for Korea’s Nuri rocket, which is the nation’s first domestically built orbital launch vehicle developed by the Korea Aerospace Research Institute (KARI). He also contributed to European launch vehicle engines at the German Aerospace Center in Berlin before returning to Korea to collaborate with another aerospace startup, ultimately choosing to start his own company.

Although Unastella has yet to turn a profit, investor optimism remains high about its potentials. The Series B funding round was led by Altos Ventures, with contributions from Korea Development Bank, Strong Ventures, and Hana Ventures, among others.

Park has a keen focus on the upcoming UNA EXPRESS-II launch expected later this year. Reaching an altitude of 100 kilometers would be a significant achievement, one that Park believes will foster collaborations with South Korea’s top aerospace and defense firms.

The 22-member team at the startup has laid a solid groundwork and established institutional partnerships. Components from UNA EXPRESS-I have been integrated into the efforts of South Korea’s national space agency, and the Korea Aerospace Research Institute has supplied Unastella with its electric motor pump technology.

Unastella is not alone in its pursuit of the global space launch market, which was valued at around $15 billion in 2023 and is projected to grow to nearly $41 billion by 2030, according to Grand View Research.

While South Korea’s commercial launch sector is still emerging, its landscape is beginning to take shape.

Hanwha Aerospace, the nation’s leading defense conglomerate, acquired the government-developed Nuri rocket last year after obtaining comprehensive technology rights from KARI. Two other startups are also vying for market share: Innospace, which is publicly listed on the Korean stock exchange and has successfully carried out a suborbital launch, and Perigee Aerospace, which is currently developing its Blue Whale rocket. To date, none have achieved a commercial orbital launch. South Korea’s space agency KASA, established in 2024, has committed $266 million over seven years to improve launch infrastructure, demonstrating strong governmental confidence in the private sector.

The competition extends beyond South Korea; China is a dominant player in the Asian market, with companies like Galactic Energy, LandSpace, and iSpace, all of which have completed multiple successful launches. Japan’s H3 rocket, developed by JAXA and Mitsubishi, accomplished its first successful launch in 2024, while startup Interstellar Technologies is working on its own small vehicle. In Australia, Gilmour Space made its initial attempt at an orbital launch this year. Additionally, Rocket Lab, which started in New Zealand and is now publicly traded on Nasdaq, stands out as the only Asian-founded company to have created a commercially successful launch operation.