Space Companies Can Use Defense Industry Mutual Aid Services; Korea Aerospace Administration Selects System Improvement as an Achievement

Legal basis established for space companies to use defense industry mutual aid services; expected to ease cost burden
Opening Naro Space Center to private sector and securing site for satellite navigation ground center also selected as outstanding cases

A path has opened for domestic space companies to use the guarantee and mutual aid services of the Korea Defense Industry Mutual Aid Association without setting up a separate mutual aid association. The system was improved to allow the use of the existing defense industry financial support framework, taking into account the characteristics of the space industry, which requires massive investment in areas such as launch vehicle and satellite development and carries high business risks.

The Korea Aerospace Administration said on October 26 that it had selected four cases of outstanding and challenging proactive administration this year, including this system improvement.

The Nuri rocket stands tall at Launch Pad 2 of the Naro Space Center in Goheung, Jeonnam-Gwangju, at around 10:30 a.m. on the 7th. Provided by the Korea Aerospace Research Institute. Yonhap News Agency

The expansion of mutual aid services for space companies, selected as the top case, was pursued in recognition of the technological and industrial links between the space and defense industries. Previously, there was insufficient legal basis for providing guarantees and mutual aid support to share the business risks of space companies.

In cooperation with the Defense Acquisition Program Administration, the Korea Aerospace Administration amended the Act on the Development and Support of the Defense Industry in July. This established an institutional basis for space companies to use the guarantee and mutual aid services of the Korea Defense Industry Mutual Aid Association. The administration expects the measure to reduce companies' costs and, over the long term, help grow the domestic space insurance industry.

Naro Space Center Opened to Private Sector; Site Secured for KPS Ground Center

Other selected cases included opening the Naro Space Center to the private sector and securing a site for the Korea Positioning System (KPS) ground center.

The Naro Space Center had been operated under government leadership, which limited its use by private launch vehicle companies. The Korea Aerospace Administration developed and published guidelines for private companies to use the facilities, enabling them to prepare for launch vehicle tests and launches in South Korea. The measure is intended to reduce the burden on companies that had relied on overseas launch infrastructure.

When it became difficult to use the originally planned site for the KPS ground center, an alternative site was secured following consultations with relevant agencies and discussions with local residents. KPS is an independent satellite navigation system being developed to provide precise positioning, navigation, and timing information for the Korean Peninsula and surrounding areas.

A case that did not achieve the expected results but was recognized for its challenging nature was also selected. The Korea Aerospace Administration arranged opportunities for exchanges with around 20 domestic aviation parts companies during a visit to South Korea by global aircraft manufacturer Eve Air Mobility. However, the effort did not lead to expanded substantive cooperation, in part because of technological gaps.

The Korea Aerospace Administration plans to use the technological gaps identified through the exchanges in planning future research and development (R&D) projects and seek follow-up cooperation in connection with Korea Trade-Investment Promotion Agency (KOTRA) programs.

"As aerospace involves many new and highly challenging endeavors, we must achieve results that the public can feel through proactive administration that goes beyond established practices," said Tae seog Oh, head of the Korea Aerospace Administration. "We will ensure that employees who achieve outstanding results through a challenging approach are duly recognized, and foster a public service culture that is not afraid of failure."

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