Yoon Young-bin, head of the Space Launch Agency, presented a vision to achieve a 10% market share in the aerospace sector by 2045 during the opening ceremony on May 30 last year. Currently, South Korea's market share stands at about 1%. The Space Agency promised to increase the number of South Korean corporations among the top 100 global aerospace corporations from three to ten to achieve this goal.
The South Korean corporations that made it to the global top 100 aerospace corporations are Korea Aerospace Industries (KAI), Hanwha Aerospace, and LIG Nex1. This means that seven more such corporations need to be established within 20 years. The Space Agency has positioned itself as a stepping stone for a leap from government- and public-centered space development, known as 'Old Space,' to a privately-led 'New Space.'
Unfortunately, evaluations from corporations have not been very positive. Major corporations like KAI and Hanwha Aerospace expressed dissatisfaction over sudden business plan changes and the Space Agency's incomprehensible decisions. Startups that desperately need the agency's support noted that "the Space Agency's presence is insufficient."
◇"The Space Agency has insufficient presence... lacks proactivity"
Although the Space Agency has emphasized New Space, there is currently not a single launch site available for corporations to use. To launch a space vehicle domestically, one must go to the Naro Space Center in Goheung, Jeonnam, managed by the Korea Astronomy and Space Science Institute (KASI), or the Anheung Comprehensive Test Site of the Defense Acquisition Program Administration (ADD). However, both locations are fully booked, making it as difficult as reaching for the stars for private corporations to use them.
Perigee Aerospace attempted an offshore launch in Jeju Island last year, but the launch site was wrecked due to rough seas. This year's launch also remains uncertain. A company representative stated, "We are unable to finalize a launch site due to our lack of preparation combined with the launch schedule issues at Goheung and Anheung." INNOSPACE has looked overseas entirely, having launched the test projectile 'Hanbit-TLV' in Brazil last March, with plans for future launches in Brazil and Norway.
While the construction of private launch sites is urgent, the Space Agency insists on adhering to the 2031 completion plan established during the tenure of the Ministry of Science and ICT. A representative from a space startup questioned, "Once a launch site is built, there's a chance that all space vehicle startups might close down," and added, "Isn't finding a way to accelerate the completion timeline the very reason the Space Agency was created?"
The pace of regulatory and institutional refinement is also slow. One space corporation took a year to receive approval for building a ground station for optical communication using lasers. A representative from the company remarked, "Looking at the regulations, it seemed it would take no more than ten days at best, or a month at worst," adding, "I thought the launch of the Space Agency would speed up space-related administration, but it feels like it has actually slowed down."
There are also claims that it actually hinders corporations. Last month, when LIG Nex1 was selected as the preferred negotiator for the development project of the Cheollian Satellite 5, KAI raised objections. KAI argued that it does not make sense for LIG Nex1, which lacks a record of satellite development and does not possess assembly or testing facilities, to win the project.
The Cheollian Satellite 5 is the first weather satellite jointly developed by the public and private sectors in South Korea. The project budget amounts to 323.8 billion won. A private space expert noted, "There are even stories that KASI chose LIG Nex1, which has relatively little experience, to take the lead in the satellite development project."
◇Changes to next-generation launch vehicle project undermine trust
Changes to the next-generation launch vehicle development project have also contributed to a decrease in trust in the Space Agency. This project involves developing a launch vehicle to be used after Nuri, with over 2 trillion won in national budget investment. Shortly after its launch, the Space Agency decided to change the project plan to develop a reusable launch vehicle.
The Space Agency sought to expedite the change plan by undergoing a specific evaluation by the Ministry of Science and ICT, but the ministry required a review of the appropriateness by the Ministry of Economy and Finance due to the large scale of the budget increase. This process could take at least six months, meaning the decision on whether to change the project plan may not be clear until the end of the year.
The first launch of the next-generation launch vehicle is scheduled for 2030. Under these circumstances, there are doubts about whether the development schedule can be met. An executive from a space corporation stated, "Changing the plans of such a large project during a government transition period is, for whatever reason, unfeasible, and it raises questions about whether the Space Agency has the capacity to realize its enthusiasm or vision."
A senior official from another ministry involved in tasks related to the Space Agency remarked that "it was nonsensical for them to request a specific evaluation to change the plans for the next-generation launch vehicle development project," adding, "It currently seems like the Space Agency is intentionally delaying the next-generation launch vehicle development project."
◇Severe budget shortages, no flagship project in aviation
To properly implement the blueprint for New Space envisioned by the Space Agency, funding must be secured. The agency's budget this year is 964.9 billion won. Most of the budget is allocated to projects planned during the Ministry of Science and ICT's tenure, with 310.6 billion won earmarked solely for Nuri and next-generation launch vehicle development. This indicates that the Space Agency lacks the funds to pursue new projects.
Kim Min-seok, vice president of the Korea Aerospace Industries Association, stated, "The Space Agency claims it will increase its budget by 20% each year; at that rate, it will be too late," emphasizing that "to achieve a 10% share of the global market or add seven more corporations to the global top 100, more aggressive investment is needed than what is currently being done."
Choi Gi-young, a professor in the Department of Aerospace Engineering at Inha University, stated, "It can be viewed as an achievement of the Space Agency that it has smoothly absorbed various projects from the Ministry of Science and ICT and the Ministry of Trade, Industry and Energy while ensuring continuity," while also acknowledging that "it is true that many opinions suggest that it has not met expectations since its establishment." Professor Choi pointed out that "especially in the aviation sector, there are no projects that receive attention compared to space projects, making it hard to feel what has improved since the Space Agency was established."