Site: Halla Engineering and Heavy Industries, Ltd.
Aerospace and Defense Division
8th Floor SIGMA Tower, 7-19, Sincheon-Dong
Songpa-Gu, Seoul, 138-240, Korea

Date Visited: June 4, 1997

WTEC: J.V. Evans (report author), J. Pelton

Hosts:

BACKGROUND

Halla Engineering and Heavy Industries, Ltd. was established in 1977 by its Honorary Chairman, Dr. Chung In Yung (co-founder of Hyundai Group), who is the pioneer of Korean heavy industries. Halla has grown rapidly to become the 12th largest of the Korean conglomerates with 18 subsidiaries and assets of $7.5 billion.

Presently, the Halla group is a major player in a number of industrial sectors including shipbuilding, the construction of pulp and paper mills, cement plants, automotive parts, heavy construction equipment (bulldozers, graders, fork-lift trucks, etc.), climate control systems, and industrial plants and facilities (e.g., power plants). Halla has recently begun a move into the high-tech areas of computers and aerospace. Supporting all of these activities is a large R&D program (with a central R&D center located at Dukso) and a university (Halla Institute of Technology in Wonju). Halla also has entered the telecommunications business as a part of the consortium that has the third license to operate as a long-distance carrier in Korea.

The aerospace sector at Halla includes satellites, launch vehicles and aircraft. In the launch vehicle area, Halla is developing a single-stage liquid propellant (WFNA/kerosene) sounding rocket engine which will develop 5,000 kgf of thrust. This is being treated as a "learning exercise," the long-term objective being to become a launch-service provider within about a decade. To support its satellite work, the Aerospace Division is constructing clean room facilities at its R&D center at Dukso near Seoul for the assembly, integration and test of satellites and components. These will be capable of handling intermediate sized satellites. The R&D activities occupy 40 engineers divided into satellite and launch vehicle teams.

SATELLITE CONSTRUCTION AND LAUNCH ACTIVITIES

Halla was a subcontractor to McDonnell Douglas for the launch of the Koreasat-1 and 2 satellites, building both nosecone fairings and the payload adapters (that fasten the spacecraft to the third stage of the launcher). It also provided the separation systems and structure systems in the KITSAT program (for KAIST). Halla will have a somewhat larger role in KARI's KOMPSAT propulsion system (feedline and propellant tank) as well as the assembly integration and test of the propulsion system module.

To date, Halla appears to have had greater success supporting launch vehicle prime contractors than satellite manufacturers. It does intend, however, to enter the satellite manufacturing business. Besides the investment in clean room facilities, mentioned above, Halla has had 25 engineers in training at McDonnel Douglas and TRW for satellite and launch vehicle engineering in California and Florida. Halla has a small role in the Koreasat-3 program as a subcontractor to Lockheed Martin and will perform integration and assembly of the power subsystem, including the batteries, fuse boards and pyro relay assembly.

Halla may follow the Hyundai model of investing in satellite systems in exchange for a portion of the work and the requisite technology, and is exploring relationships with prominent aerospace companies around the world. Halla has also invested $12 million in a joint venture with Lockheed Martin and Raytheon to create a commercial remote sensing satellite program with a goal of supplying images with a resolution of 1 meter.

SUMMARY

Halla's Aerospace Division claims to be Korea's largest space company even though its revenue is only in the millions. It has ambitions towards entering the launch business as its long-term goal and is developing a liquid propellant sounding rocket as a learning exercise for its launch service company. It has been somewhat less successful to date than Hyundai in capturing satellite related work, but has every intention of pursuing this and is constructing appropriate facilities for assembly, integration and test at its central R&D facility just outside Seoul. Halla has entered into a joint venture with Lockheed Martin and Raytheon to create a remote sensing satellite company for which it would be the regional operator and shareholder, and has another relationship with TRW for training its engineers. It also secured a relationship with McDonnell Douglas under which it gets portions of the work involved when the Delta is employed to launch Korean satellites.


Published: December 1998; WTEC Hyper-Librarian