Companies Entering Space Development to Be Nurtured as 'Korean Version of SpaceX'

Ministry of Science and ICT Proposes Amendment to Space Development Promotion Act Strengthening Support Provisions

[Asia Economy Reporter Kim Bong-su] In order to encourage companies to participate in space development, a space industry cluster will be designated. Profit guarantees will be provided for business contracts, and regulations will be eased, including reducing the limits on penalties imposed for delays.

The Ministry of Science and ICT announced on the 22nd that it plans to submit a revision bill of the Space Development Promotion Act to the National Assembly within this year after review by the Legislation Office.

The bill allows for the designation of space industry clusters through consultations with local governments and deliberations by the National Space Committee, and includes provisions for subsidizing and financing costs. It also contains clauses requiring public enterprises and government-funded research institutes that possess space development infrastructure such as satellite assembly and testing facilities to open them to companies.

Additionally, departing from the existing research and development (R&D) project methods, the bill introduces a phased contract system for space development projects based on companies' continuous demands, starting with areas where technological capabilities have been secured. The contract system can be applied when manufacturing products with the same or similar quality or performance. Penalties for delays can also be eased to 10% of the contract amount, which is the level applied in the defense industry.

The bill also includes grounds for designating new space technologies, promoting technology transfer, encouraging startups in the space sector, and strengthening workforce development. Technologies first developed domestically can be designated as new space technologies and given priority use. To promote technology transfer of space development achievements, it includes provisions for the distribution of information and the exchange of personnel and technology. It also contains financial support provisions to promote startups related to space development, as well as provisions for identifying workforce demand and supply forecasts, supporting educational programs, and supporting the creation of employment for specialized personnel necessary for space development.

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