Budget, manpower, and policy support are absolutely insufficient... Government-level 'Control Tower' Needed [Tech War, Birth of Advanced Nations]

Experts and Dedicated Agencies Call for Establishment
Promoting Innovation through Expanded Private Sector Participation

An employee is inspecting an aircraft engine at the Hanwha Aerospace Changwon plant. Photo by Hanwha Aerospace

[Asia Economy Reporters Donghoon Jeong, Chaeseok Moon] "It is even embarrassing to compare the domestic space industry with SpaceX and others. The engine of Nuriho is actually based on technology that is more than 50 years behind compared to their technological capabilities."

Experts unanimously say that the domestic space industry is 'embarrassing' even to compare with the global level. Although Nuriho was developed with domestic technology, this technology is also at a level developed by transferring and advancing overseas technology. They point to the absolute lack of budget, manpower, and policy support as the limitations of the domestic space industry.

South Korea's space development budget in 2020 was $720 million (about 933.6 billion KRW, 0.04% of GDP), the lowest level compared to the G5 countries such as the United States, Japan, Germany, the United Kingdom, and France, as well as China and Russia. The budget ($480 million, about 622.4 billion KRW) and manpower (about 1,000 people) of the Korea Aerospace Research Institute (KARI), the agency responsible for space development, are also in the lower ranks compared to these countries.

Experts agree that a dedicated space development agency must be established. To prepare for the space era, the status of the National Space Committee, which oversees space policy, should be strengthened. They also said that the establishment of a Space Agency is necessary to upgrade domestic space development capabilities to the next level. It is pointed out that it is insufficient to handle this with only two related divisions within the Ministry of Science and ICT's Large Public Research Policy Bureau. There is a need for a 'control tower' that gathers the consensus of ministries related to space development, such as the Ministry of Science and ICT, Ministry of Trade, Industry and Energy, Ministry of National Defense, and Ministry of SMEs and Startups, and oversees space industry policy. The global space powers, including the G5, China, and Russia, have established separate independent administrative organizations to accelerate space development. The aviation industry cites that aviation powers such as the United States, the United Kingdom, Australia, and Singapore operate independent ministries. Professor Huh Hwan-il of the Department of Aerospace Engineering at Chungnam National University stated, "A Space Agency is absolutely necessary for the development of the space industry," and added, "The government should implement policies to enable the private space industry to develop."

There are also calls to expand private company participation in space development to promote innovation. SpaceX's case of achieving revolutionary cost reduction through reusable launch vehicles is a representative example. To this end, there is a strong voice to foster space funds and strengthen startup support to discover aerospace startups, thereby dramatically increasing private company participation. Furthermore, the paradigm of space development should shift from government and government-funded research institutes to private sector-centered development.

Currently, domestic private investment and technological levels are low compared to global advanced countries. The scale of private company space investment in research and development (R&D) is at a lower level, and aerospace technology is also at a low level. According to statistics from the Organisation for Economic Co-operation and Development (OECD), private space industry R&D investment amounts are $26.4 billion in the United States, $3.4 billion in France, $2.4 billion in the United Kingdom, $2 billion in Germany, and $800 million in Japan, but South Korea's $400 million is the lowest, about half of Japan's level.

Professor Lee Chang-jin of the Department of Aerospace Engineering at Konkuk University said, "Regardless of economic feasibility, fostering launch vehicles is a field that must be challenged," and added, "Similar to 'purpose routes' operated with national subsidies despite deficits due to lack of passengers, continuous investment is necessary for launch vehicle development." He continued, "The government should signal that it will continue efforts to create launch demand so that companies will enter and do business," and strongly stated, "It is unreasonable to enter now and compete with SpaceX under the current environment."

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