In late 2022, the Korean government announced its goal to become a “space economy global powerhouse” by 2045, including a key project of fostering an ecosystem for the space industry. As a major step towards that goal, the government recently announced a “Plan to Strengthen Support for Building a Space Industry Ecosystem Led by the Private Sector” (“Space Ecosystem Plan”), followed by a “Proposed Implementation Plan for the Space Industry Cluster Vision” (“Proposed Space Cluster Plan”). Through these plans, the government will try to shift the development of space technologies from the public sector to the private sector.
 

• Structure for space development projects: Often, space development projects are conducted as government-funded research projects under specific regulations. While this allows the research company to accumulate advanced technologies, the regulations place significant limitations on such projects, such as strict restrictions on revenue generation and how the government funds may be used.

• Satellite imaging industry: The government has been focusing on building satellite systems for public services such as broadcasting, weather forecasting, and research, but additional support and investment for private satellite services would be helpful.

• Launch vehicle industry: Although Korean launch vehicle start-ups have been conducting successful launch vehicle tests, it has been difficult to build track records for entering the global market.
   

To address the above difficulties, the MSIT plans to develop new “Space Industrialization Strategies” during the first half of 2024 with the goal of implementing them between 2024 and 2028. Through these strategies, the MSIT seeks to (i) diversify the methods by which companies can participate in space development projects to provide more self-sustainability, (ii) expand the satellite imaging market to the private sector, and (iii) provide more support for launch vehicle start-ups.
 
It is anticipated that more projects will be conducted as government contract projects instead of the current system of government-funded research projects which are subject to strict regulatory restrictions. Structuring space development projects as negotiated government contracts may better incentivize and support companies in the space industry, although they would be subject to the regulations that apply to government contracts generally.
 

With the enactment of the Special Act on the Establishment and Operation of the Korea Aerospace Administration in January 2024, the Korean government is beginning to actively pursue its goal to become a global powerhouse in the space industry. Beyond the Space Ecosystem Plan and the Proposed Space Cluster Plan, the Korean government is planning to further develop space-related regulations and policies, including (i) launching the Korea Aerospace Administration (“KASA”), (ii) further developing the Tripartite Space Industry Cluster, and (iii) establishing Korea’s roadmap for space exploration.

It would be advisable for companies operating in the space industry to closely monitor and proactively respond to new developments in Korea, such as by submitting opinions in response to any new laws, regulations, or policies, so that the Korean government appropriately considers potential implications for businesses.

[Korean Version]