Elon Musk's SpaceX and Korea Aerospace Industries (KAI) will reportedly jointly develop a next-generation launch vehicle for medium-sized satellites.

On July 18, KAI, South Korea's only aircraft manufacturer, announced that it had decided to sign an agreement with SpaceX to develop the No. 4 next-generation medium-sized satellite launch vehicle, considering SpaceX's high success rate and low cost.

The two companies are also considering a strategic alliance cooperation in the aerospace sector. In May, Kim Jung-ho, KAI's chief financial officer, had discussions with SpaceX about entering the Asian market.

KAI is working on developing the next generation of medium-sized satellites, a project led by the Korea Aerospace Research Institute (KARI), a relevant Korean government department, to develop five 500 kg class satellites itself.

KAI has not yet disclosed the price of the SpaceX contract but noted that the lower cost and success rate of SpaceX is higher than other companies' satellite launchers at home and abroad.