Satellite firms SpaceX and OneWeb are set to provide LEO communication services for South Korea.

The country’s Ministry of Science and ICT announced on May 30 that three cross-border supply agreements had been signed regarding the supply of satellite services. The Ministry also said that service could begin as early as June.

SpaceX signed an agreement with Starlink Korea LLC, which was established in March 2023 as a South Korean subsidiary of Starlink. Although SpaceX operates Starlink, Starlink Korea's official reseller is SK Telink, a SK Group subsidiary with a focus on satellite communication.

Eutelsat OneWeb signed two agreements: one with Hanhwa Systems, a subsidiary of the conglomerate Hanwha Group, and another with KT Sat, a subsidiary of the conglomerate KT Group.

These agreements were signed because the country’s Telecommunications Business Act stipulates that foreign companies seeking to enter the South Korean market must sign a cross-border supply agreement with a domestic supplier.

Following approval, an assessment of each operator’s terminals will be conducted in accordance with the Radio Waves Act, which was recently simplified this year.

Both operators would provide better service for ships and aircraft, as well as communications services to previously underserved areas, according to a press statement issued by the Ministry in April.

In the same statement, the Ministry announced that South Korea would establish a 6G-standard LEO satellite communication system by 2030. This system would consist of two communication satellites, ground stations, and user terminals. KRW 320bn ($235m) has been budgeted.

Eutelsat Group has positioned itself as a rival to Musk’s Starlink despite recent financial challenges. Despite the agreement signed between Eutelsat OneWeb and Hanhwa, the South Korean company sold its 5.4 percent stake in Eutelsat, a separate entity, on June 5, telling Reuters that they intended to concentrate on “defense-related satellites and military communications, rather than on civilian satellite operations and services.”