Proposed Amendment to the Space Development Promotion Act

As noted in our previous newsletter (Link), the Korean government is focusing on fostering a space industry ecosystem with the goal of becoming a “space economy powerhouse” by 2045. As part of its efforts, the Ministry of Science and ICT (“MSIT”) announced a proposed amendment to the Space Development Promotion Act (the “Proposed Amendment”) on March 20, 2024 and gathered public opinions until April 29, 2024 (available in Korean, Link). Since no notable opinion was submitted during this period, the Proposed Amendment is expected to be submitted to the 22^nd National Assembly without any substantive revisions. Key details and takeaways of the Proposed Amendment are as follows.

“Launch License” to Allow Repeated Launches of the Same Space Launch Vehicle From the Same Launch Site

To minimize launch failures and to ensure public safety, the current Space Development Promotion Act (the “Act”) requires anyone intending to launch a space launch vehicle to obtain a “launch permit” from the MSIT (Article 11 of the Act). However, there have been concerns that the current launch permit requirement is inefficient and adds substantial administrative and financial burdens on businesses aiming to conduct repeated launches because a separate launch permit must be obtained for each launch.

In response, the Proposed Amendment introduces a new “launch license” that allows repeated launches of the same space launch vehicle from the same launch site, without the need to obtain a new permit for each launch. (Here, the term “same vehicle” appears to mean the “same vehicle model” but there is no clear definition yet.) Details for the launch license under the Proposed Amendment are as follows:

The MSIT may issue a license to launch operators for repeated launches of the same launch vehicle from the same site, in consideration of efficiency (Article 11-2 of the Proposed Amendment).
The National Space Committee may deliberate on matters related to launch licenses (Article 6 (2) 7 of the Proposed Amendment).
The launch license can be revoked through a hearing for certain causes (Article 13-2 of the Proposed Amendment).
Certain provisions applicable to launch permits are expanded to also apply to launch licenses, such as grounds for disqualification, liability for damages caused by space accidents, investigation by the Space Accident Investigation Committee, and sanctions (Articles 12, 14, 16 (3) 3, and 27 (1) of the Proposed Amendment).
The Presidential Decree will set forth detailed regulations regarding launch licenses, such as license term, license issuance procedures, matters to be reviewed during the application process, and license modification (Article 11-2 (2) of the Proposed Amendment).

Given the expected passage of the Proposed Amendment, the MSIT has begun preparing detailed standards and procedures for the launch license system through a proposed amendment to the Enforcement Decree of the Act, as well as establishing the Guidelines on the Standards for Launch Licenses (tentative title). Therefore, it is advisable for companies and organizations that are engaging in technology development and projects with the goal of repeated launches of space launch vehicles to closely monitor relevant regulatory developments and prepare for obtaining a launch license.

Exception to Allow the Minister of National Defense to Issue Launch Permits if Necessary for National Security

The current Act grants the authority to issue a launch permit only to the MSIT (Article 11 of the Act). However, there have been calls for an amendment to the Act that reflects the growing demand for military satellites – in particular, the need for urgent and secure launches of space launch vehicles for national security reasons.

In response, the Proposed Amendment allows the Minister of National Defense to issue launch permits for space launch vehicles if necessary for national security, and in such cases, the launch operator must submit a launch plan to the Minister of National Defense. The Minister of National Defense may also revoke a launch permit that has been issued (Article 11 (6) of the Proposed Amendment).

This part of the Proposed Amendment is the result of consultations between the MSIT and the Ministry of National Defense, and detailed standards and procedures for national defense space launch vehicles may differ from those for other space launch vehicles. Therefore, it is advisable for companies and organizations involved in launches of national defense space launch vehicles to closely monitor relevant developments for the detailed standards and procedures.

[Korean Version]

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