"Space Development, Now Contracts Instead of Research"…制度 Improvements Tailored for NewSpace

Ministry of Science and ICT Announces Legislative Notice for Space Development Promotion Act Amendment on 13th
Guaranteeing Profits through Contracts, Not R&D Participation, with Private Companies
Designating Space Industry Cluster to Provide Financial Support and Tax Benefits to Resident Companies
National Space Committee Secretariat to be Placed under Ministry of Science and ICT

SpaceX rocket carrying cargo launched to the space station [Image source=Yonhap News]

[Asia Economy Reporter Kim Bong-su] The government has initiated improvements to related systems to fully usher in the 'New Space' era, where the private sector leads space development. It plans to designate 'space industry clusters' to support resident companies and change the method of space development projects from research and development (R&D) to 'contracts' to guarantee private sector profits. A secretariat will be established under the National Space Committee, and publicly owned space development facilities will be opened to the private sector for utilization.

According to the Ministry of Science and ICT on the 17th, a partial amendment to the 'Space Development Promotion Act' containing these details was legislatively announced on the 13th. After collecting opinions from stakeholders until the 23rd of next month, it will be submitted to the National Assembly.

Accordingly, the government will first designate specific areas as space industry clusters to intensively foster the space industry, which is in its early stages of industrial development. These are regions linking space development-related research institutes, companies, and educational institutions, designated by the Ministry of Science and ICT upon application by city or provincial governors. Through financial support and tax benefits, the government plans to promote the influx of companies and encourage convergence of the space industry and related industries.

Additionally, space development infrastructure owned by government-funded research institutes such as the Korea Aerospace Research Institute, public enterprises, and the Korea Institute of Industrial Technology will be opened for use by space operators. Especially to activate private sector participation in the space development industry, a contract method guaranteeing corporate profits will be introduced for space development projects, which have so far been conducted only through R&D agreements. However, when the government directly signs procurement contracts with companies, international bidding must be conducted under the Government Procurement Agreement, so this will apply only when technological competitiveness, such as mass-producible technology, is secured. Considering the high technical difficulty of space technology, the amendment also includes provisions to relax delay penalties imposed for contract performance delays within limits set by enforcement ordinances.

Space technologies developed domestically for the first time, or those introduced from abroad and assimilated or improved, will be designated as new space technologies, and a basis will be established to promote technology transfer from government-funded research institutes to companies. As space technology is a national strategic and cutting-edge technology with limited demand relative to development difficulty, preferential use will be allowed by granting bidding score bonuses when new space technologies are designated. To promote technology transfer of space development achievements, provisions supporting information distribution, personnel and technology exchange and cooperation, and dispatch of research institute researchers to companies are also included.

To encourage challenges in space development, support for startup funds, provision of achievements, support for testing equipment, and accounting consultations will be provided. The amendment also specifies grounds for identifying manpower demand and supply forecasts, supporting educational programs, and supporting employment creation for specialized personnel.

A secretariat will be established to more effectively support the work of the National Space Committee, which has been elevated to the Prime Minister level. This is to strengthen inter-ministerial coordination functions as space policy expands from past R&D-centered approaches to diplomacy, security, and industry. The Ministry of Science and ICT will establish the secretariat and newly create grounds to request the dispatch of public officials and others. This amendment will be submitted to the National Assembly within this year after collecting opinions and review by the Ministry of Government Legislation.

Kwon Hyun-jun, Director of the Mega Public Research Policy Division at the Ministry of Science and ICT, said, "With the Korea-US summit held last May, the end of the Korea-US missile guidelines, and the signing of the Korea-US satellite navigation cooperation joint statement, an opportunity has been secured for the space industry to take a leap forward." He added, "By amending the Space Development Promotion Act, we will make good use of the opportunities created through the Korea-US summit to systematically foster the space industry."

This content was produced with the assistance of AI translation services.