South Korea's first satellite-bearing rocket may streak over Japan's territorial waters, diplomatic sources said Saturday.

The two-stage rocket to be launched in late July is likely to fly over waters from southwestern Kyushu to the main island of Okinawa Prefecture, which means the first stage will drop into the East China Sea off Kyushu and the second stage into waters off the southeastern Philippines, the sources said.

The launch will come after North Korea launched a rocket over northern Japan earlier this month that it says was a satellite. The United States, South Korea and Japan all believe it was a ballistic missile test.

"It's clear South Korea aims to promote peaceful use of outer space," a government source said.