"Space Industry, Core of the Future Industrial Revolution... Private Sector Leadership and Policy Support Essential"

Samil PwC Releases Report
Next-Generation Security Emerges as a Key Focus
Already Lagging Behind the US and China
"Korea Should Focus on Satellite Communications"

Samil PricewaterhouseCoopers

The space industry has emerged as a key driver of innovation across economic, social, and security sectors, positioning itself at the core of the future industrial revolution. Analysts suggest that for Korea to advance as a powerhouse in the space industry, it is essential to foster a private sector-led space industry environment alongside strong policy support from the government.

On November 24, Samil PricewaterhouseCoopers published a report titled "The Future Heading to Space: New Space Race." The report analyzes opportunities in the rapidly evolving space industry environment and underscores the need for Korea to adopt strategic measures to become a global leader in the space sector.

Already a 900 Trillion Won Market... The Core of 'Next-Generation Security'

The report notes that while the "old space" economy focused on government-led technological development and securing political dominance, the new space economy is characterized by commercial business objectives, reduced launch vehicle costs, expanded participation of private companies, and autonomous technological competition. These factors are driving innovation and rapid growth in the industry.

In particular, the report highlights that space-based infrastructure such as satellite communications, reconnaissance, and navigation is overcoming the limitations of terrestrial infrastructure and playing a critical role in strengthening national security and supply chain resilience, drawing attention as a strategic domain of "next-generation security."

According to the U.S. nonprofit Space Foundation and McKinsey Consulting, the global space industry was valued at $613 billion (approximately 902.336 trillion won) as of last year. It is projected to grow at an average annual rate of 9.1% over the next decade, reaching $1.79 trillion by 2035.

Public-Private Collaboration Essential for Becoming a Space Powerhouse

The report emphasizes that for Korea to become a space powerhouse, policy support from the government and collaboration between the government and private sector, as well as among private companies, are essential. It presents four core strategies: ▲ fostering a private sector-led space industry environment ▲ selecting and focusing on competitive sectors ▲ building an ecosystem across the entire space industry value chain ▲ nurturing and securing specialized talent.

The report also points out that, given the significant gap between Korea's space-related budget and those of leading countries such as the United States and China, it would be more efficient to focus on the satellite communications sector, which has a high share and strong competitiveness within the industry. The full report is available on the Samil PricewaterhouseCoopers website.

Kim Taeseong, Leader (Partner) of the Defense Industry Center at Samil PricewaterhouseCoopers, stated, "The space industry was initially approached as an extension of the defense industry's spatial domain, but it has now become a central pillar of national security and industrial competitiveness worldwide. As the Korean government aims to become one of the world's top five space powers, robust government support and active participation from the private sector are required to ensure this goal does not remain a mere slogan."

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