Unastella, South Korea’s domestically launched rocket launcher, raises $24M

As SpaceX bids for what could be the largest IPO in history, the race to build the next generation of launch vehicles is heating up. Asia wants in. Startups across Australia, India, Japan, and South Korea are racing to establish themselves in a market long dominated by the US and China.

One of them is Unastella, a four-year-old South Korean startup that recently closed a $24 million Series B, bringing its total funding to $44 million. The company launched its rocket, Una Express-I, from South Korean soil in May 2025.

The Seoul-based rocket startup is building its own launch vehicles and engines, with an initial focus on small satellite launch services. Unastella’s immediate focus is validating its technology and business model with orbital launch, with suborbital spaceflight as a long-term goal, founder and CEO Jae Park told TechCrunch.

Unastella uses a paraffin and liquid oxygen propulsion system, one of the most proven combinations in rocket history, and one used by SpaceX’s Falcon series. In addition, the company replaced the traditional turbo pump with an electric motor pump, a simple and cheap alternative that Rocket Lab has already proven in flight.

The tradeoff is the burden of payment. Electric motor pumps are heavy, which means less space for satellites. But Park said that was a deliberate decision.

“We’re not an R&D group trying to build the most impressive rocket,” Park said. “We are a commercial launch company trying to get to market early.”

Park also notes that Unastella handles everything in-house, such as design, manufacturing, ground operations, and flight data. The launch of UNA EXPRESS-I last year was the first real-world test of the entire system, Park said.

The CEO spent his entire career working on rocket engines. Prior to founding Unastella, Park worked on the burning systems of Korea’s Nuri rocket – the country’s first orbital vehicle, developed by the Korea Aerospace Research Institute (KARI). He then moved to the German Aerospace Center in Berlin to work on European car engines, returning to Korea to join another rocket startup before deciding to build his own.

Unastella isn’t generating cash yet, but investors seem to be backing the startup’s roadmap. Altos Ventures led the Series B, joined by Korea Development Bank, Strong Ventures, and Hana Ventures, among others.

The UNA EXPRESS-II, which is slated to be completed by the end of this year, is what the Park is really building on. Reaching 100 kilometers will mark a milestone, which he believes will open the door to cooperation with major South Korean aerospace and defense companies.

The 22-person initiative has already laid the groundwork and developed institutional relationships. Korea’s national agency delivered parts for the UNA EXPRESS-I, and the Korea Aerospace Research Institute transferred electric vehicle pump technology to the company.

Unastella is not alone in the race to enter the global space launch market, which was worth about $15 billion by 2023. By 2030, it is expected to nearly triple to $41 billion, according to Grand View Research.

South Korea’s commercial launch industry is still in its early stages, but the industry is already in shape.

Hanwha Aerospace, the country’s largest defense conglomerate, took over the state-made Nuri rocket last year after acquiring full technology rights from KARI. Two startups are also competing: Innospace, which went public on the Korean stock market and made a sub-orbital launch, and Perigee Aerospace, which is building its Blue Whale rocket. No one has yet achieved a commercial orbital launch. South Korea’s space agency, KASA, set to launch in 2024, has committed $266 million over seven years to build the launch infrastructure – a sign that the government is betting on the private sector to take the lead.

The competition extends beyond Korea. In Asia, China leads the pack: Galactic Energy, LandSpace, and iSpace all made multiple launches. Japan’s H3 rocket, developed by JAXA and Mitsubishi, completed its first successful launch in 2024, while startup Interstellar Technologies is developing its own small vehicle. In Australia, Gilmour Space attempted its first orbital launch this year. Then there’s Rocket Lab – founded in New Zealand, now listed on Nasdaq – which remains the only company founded in Asia to build a commercial launch business.