Docking Dreams: Navigating the Space Economy
Over the years, South Korea has made substantial progress in space through technology and innovation. The Korea Aerospace Administration (KASA), which is to be established this May under the Ministry of Science and ICT, is the latest example to prove this. In this new emerging era, the Sungkyun Times (SKT) will follow the development of South Korea on this journey toward becoming a space powerhouse.
Overcoming The Impossible
-The New Space
Space had been an unprecedented horizon until humans paved the way in the 1950s. Back then, space development was focused primarily on military purposes and mainly led by the government. For instance, the National Aeronautics and Space Administration (NASA) was established in 1958 by the United States (U.S.) government to gain a competitive advantage in the Space Race during the Cold War. Entering the 21st century, however, thanks to a richer understanding of the cosmos, the trend shifted from a government-centered old space economy to the new space era. New space typically refers to the commercialization of outer space, where private sectors can enter the market to pursue economic benefits. Ever since, several business models offering space-based products and services have emerged. Some examples of new space economy business models are Space X, a space exploration company founded in 2002, and Orbital Insight, a geospatial data analysis company founded in 2013. The convergence of the space industry and technology has accelerated the commercialization of space, thus increasing its importance as a future industry. The financial service company Morgan Stanley estimated in its 2020 research that the revenue of the global space industry would surpass $1 trillion by 2040, which is 2.86 times larger than 2020’s revenues of $350 billion.
-South Korea, an Emerging Player
Tracing back to Korea’s space exploration history, despite being a latecomer, the nation quickly caught up with the global space industry. Korea’s space development began in 1992 with the launch of Korea’s first artificial satellite, KITSAT-1. Since then, Korea has succeeded in launching sounding rockets and multipurpose satellites, making significant progress in the sector. In 2023, Korea successfully deployed the homegrown rocket, Nuri, into orbit. Many space startups have also emerged in the Korean market in recent years. Perigee Aerospace, a domestic small-scale orbital launch vehicle startup, told the SKT, “Private companies such as Perigee will play an important role in carrying out minor yet significant space tasks.” Under these circumstances, the future space economy roadmap announced in 2022 by President Yoon Suk-yeol is certainly within the realm of possibility. The ambitious plans presented in the roadmap include developing a projectile engine in five years, landing and extracting resources on the Moon by 2032, and landing on Mars by 2045. The roadmap also anticipated the foundation of KASA, which is expected to be inaugurated in Sacheon City, South Gyeongsang Province, this May. The institution would act as the control tower in charge of aerospace matters, increasing the expectations of Korea’s transition into the new space economy.
Opposition Orbits
-The Rising Star
Promising outlooks on the industry’s future foster optimistic views among people. First, development in the space industry allows the reinforcement of national defense capabilities. The development of aerospace technology will strengthen striking competence and aerial surveillance, enabling a quicker and more accurate response to possible threats. The Ministry of National Defense (MND) disclosed in the 2024-2028 Defense Mid-term Plan that about ₩349 trillion would be budgeted for defense to strengthen micro-satellites and anti-ballistic missiles, which will enhance protection. Moreover, the growing space industry expands into new fields, creating opportunities for future downstream industries to utilize the space technology and data provided. For instance, the advances in low-orbit satellite technology enable the commercialization of the sixth-generation wireless communication technology, 6G, bringing further economic opportunities. Also, the space industry’s combination with the marine industry can enable services such as disaster prediction and optimal route navigation services. The application of space technology into everyday life will bring economic benefits and increase safety and comfort. As can be observed, the progress of space businesses will stimulate the nation’s economy and thus increase its influence in the global space arena.
-An Eclipsed Hope
Despite the positive aspects, some hurdles still exist behind the development of the space industry. Firstly, investing in the space industry does not result in immediate profitability. Like other research and development (R&D) intensive industries, long-term investment in R&D is required even without a guarantee of success until the presentation of a final product to the market. This means that the workforce shortage remains despite the creation of new jobs unless there is a clear advantage for the workers in terms of salary or welfare. Furthermore, experts have pointed out that the roadmap mainly focused on fulfilling pledges rather than on the essence. Jo Seoung-lae, a deputy of the Democratic Party of Korea, criticized the fact that no specific implementation strategies were stated. In addition, there are concerns that the functions of the Ministry of Foreign Affairs (MOFA), MND, and KASA could be inefficiently divided, resulting in an incomplete control tower. For example, if KASA and the MND are responsible for different types of satellite technology, the control tower will inevitably be unable to make a homogeneous policy. The current lack of a comprehensive policy is concerning because the space industry is directly related to diplomacy and defense.
“We Will Find a Way, We Always Have”
-Rebuilding the Framework
Augmenting investments in education and infrastructure is essential to secure human resources for future innovations and R&D projects. Institutions in space sector education must be supplied to qualify the necessary labor force in the industry. Gyeongsang National University’s College of Space and Aeronautics (CSA), the first university in Korea to train professionals in the aerospace field starting in 2024, proves that efforts are being made. Professor Kim Hae- dong of CSA expected that this opportunity would produce many space experts, bringing win-win effects to KASA and other nearby space industries. However, beyond this, the lifelong education function that re-trains existing workforce should also be strengthened to resolve the gap between the industrial demand and space capabilities of professionals. Lastly, the space industry cluster must be bolstered to create an attractive working environment. For this, the Space Policy Research Center’s 2023 report suggests securing core infrastructure and encouraging major companies to relocate to local areas by offering incentives. A successful cluster model that can be benchmarked is Space Florida, an independent special district for space-related functions in the U.S., with more than 16,000 companies. Here, spaceflight operators are provided with income tax credits and up to 50% of space business tax refunds by law, which makes the profession even more enticing.
-Rewriting the Fundaments
To promote accountability of national institutions, the pillar of Korea’s space industry, major goals should be prioritized instead of individual interests. A way to promptly achieve missions is setting a concrete roadmap that integrates all processes by establishing projects and shared goals with other institutions to guarantee a broad network of collaboration and responsibility. For example, by associating with aviation colleges and professionals to work on space projects related to the pre-established roadmap, the goal of setting foot on the Moon would be achieved more systematically without delay. Additionally, a fair governance structure must be discussed for each institution to operate independently and efficiently by concentrating on its function. Regarding the issue, South Gyeongsang Province Governor Park Wan-soo stressed in a meeting held this January that “For KASA to properly serve as the control tower of Korea’s space industry, it must incorporate functions of the MOFA and the MND in space-related areas.” A long-term goal should be set so the government can gradually transfer the specific space-related functions to the KASA. Ultimately, the essence lies in defining precise goals and allocating appropriate functions to each institution.
Through endless time and effort, space has been reached. Yet, this is just the beginning. The space industry is thriving now more than ever, and South Korea is taking significant steps forward. Kingos, look up to the stars. They might not be so far away after all.