Opportunities and Challenges: How is South Korea Preparing to Become an Emerging Space Power?
With the rise of the space industry in the 21st century as a domain of technological innovation, economic opportunity, and geopolitical competition, South Korea has emerged as a key player in space exploration and space technology on the global stage. The strategic importance of South Korea’s space industry extends beyond technological and economic aspects, encompassing national security, diplomatic influence, and international standing. The country aims to become a rising space power, although it still faces challenges in this domain.
In this context, a research paper by Seungjoo Lee and Sangwoo Shin, published by the French Institute of International Relations in January 2024, provides an in-depth view of the development and future of South Korea’s space industry. The paper traces the origins and trajectory of Seoul’s space efforts, offers a comprehensive analysis of its strategic approach and growth patterns in the sector, evaluates the effectiveness and impact of government policies, and assesses South Korea’s role and standing in the international space community, along with the opportunities and challenges it faces.
Development of the Space Program:
South Korea began its space development program in the early 1990s. Despite being 30 to 40 years behind more advanced countries, the nation made significant progress over the last 30 years, thanks to government support and bold vision. In 1986, the Astronomical Science Research Institute was established, followed by the Korea Aerospace Research Institute in 1989. The establishment of the Satellite Research Center at the Korea Advanced Institute of Science and Technology (KAIST) further laid the groundwork for space development. By the 1990s, South Korea developed its first small experimental satellite in 1992 and launched its first operational satellite in 1999, alongside developing small and medium-sized scientific rockets.
In the early 21st century, space-related laws were enacted, and advancements were made in satellite and launch technologies. In 2005, the Space Development Promotion Act was passed, and South Korea sent its first astronaut to space in 2008. By 2010, the country successfully joined the group of geostationary satellite operators by launching the Cheollian satellite. In June 2022, South Korea deployed a satellite using its own “Nuri” rocket, solidifying its position as a member of the global elite capable of independent orbital launches. This progress represents not only a technological leap but also the country’s evolving role in the global space arena.
The current structure of South Korea’s space development program is complex, involving many organizations and departments. It includes the National Space Committee, directly reporting to the president, and seven ministries, such as the Ministry of Science and ICT, the Ministry of National Defense, and the Ministry of Foreign Affairs. It also involves two research institutions under the Ministry of Science and ICT, the Defense Development Agency under the Ministry of National Defense, KAIST and its Satellite Research Center, and other government-funded research institutes, as well as satellite management and operating agencies.
This decentralized system has sparked debates about consistency and coherence in policy implementation, as well as challenges in securing and efficiently using budgets. Recently, there have been discussions about establishing a dedicated space agency in South Korea, leading to amendments to the Space Development Promotion Act in November 2021 and June 2022. These amendments aim to restructure the current space-related framework. The government has steadily increased its investment in space programs, allocating a record $724 million for space development in the current fiscal year, a 19.5% increase over the 2022 budget. The bulk of the budget is allocated to the growth of the space industry, followed by space transportation, space security, space science, and space exploration.
Regarding the promotion of the space industry, the government primarily focuses on expanding the development of public satellites, including small satellites, geostationary satellites, communication satellites, next-generation medium-sized satellites, and the Korean Positioning System (KPS). The strategy aims to lay the foundation for the growth of the private space industry by increasing the supply of public satellites, thereby improving the quality of applicable information services. To this end, the government plans to invest 48.7 billion Korean won by 2026 to enhance the national satellite infrastructure and integrate and calibrate its operations. Additionally, it will invest 12 billion Korean won by 2028 to increase the domestic production of space components and parts. Significant support is also being provided to space-related startups, with the government allocating a budget of 5 billion Korean won for this purpose in the current year.
Space Market Characteristics:
A report from the French Institute of International Relations highlighted the space industry market from three perspectives: demand, supply, and the institutional framework. Globally, governments are the primary customers in the space manufacturing sector, and the situation in South Korea is no different. Between 2013 and 2022, Seoul launched 12 satellites, averaging less than one satellite per year, compared to 4,165 for the United States, 419 for the United Kingdom, 315 for China, 161 for Russia, 71 for Japan, and 48 for India.
The insufficient government demand for satellite development in South Korea directly affects the overall demand in the space equipment manufacturing sector, including launch vehicles and ground stations. This situation requires a critical assessment of whether the government’s demand for satellite development constitutes a market of sufficient size to support multiple local companies specializing in space equipment manufacturing.
On the supply side, data shows that the workforce in space equipment manufacturing in South Korea remains relatively small compared to leading companies like SpaceX in the United States. Despite increased investments in research and development, the level of public investment, including facilities, seems modest compared to the world’s leading space industries. This disparity in investment may impact the pace of technological advancement and the ability of South Korean companies to compete internationally. The relatively smaller investment in facilities may also reflect constraints on manufacturing and testing capabilities, which are essential for scaling up space operations and producing more advanced space equipment and vehicles.
To leverage the role of the market in space development, there is an urgent need to achieve a smooth balance between supply and demand in the space industry through systems such as pricing and competitive markets. Currently, the government is the main consumer in South Korea’s space industry, which means that space products and services are subject to legal and regulatory constraints. The current system of transactions between companies and the government plays a crucial role in shaping the market. It is necessary to shift the focus from research and development toward market-driven growth to establish and nurture a private sector-led space industry.
Challenges in Space Development:
South Korea began formulating a systematic space strategy in the mid-1990s, aiming to achieve advancements in the space field and setting up a framework for its implementation. This strategy is divided into three phases: the first focuses on establishing the basic framework and developing satellites and launch vehicles, the second emphasizes enhancing development and investment in space technologies, and the third seeks to strengthen South Korea’s position as a global space economic power.
The detailed strategy is based on five pillars: (1) expanding space exploration, (2) improving space transportation and infrastructure, (3) promoting space as a major industry, (4) establishing space security systems, and (5) advancing space sciences. The strategy recognizes that expanding space activities is essential to respond quickly to changes in the global space order.
Space has become increasingly significant as a domain of warfare, particularly following the Russia-Ukraine conflict in February 2022, along with persistent security threats from North Korea and the growing military space race among neighboring countries. As a result, South Korea urgently needs to enhance its military space capabilities, particularly in early warning and surveillance systems, to counter North Korea’s evolving nuclear and missile launch capabilities. This requires the South Korean government to increase investment, expand the workforce, and initiate the restructuring of institutions and organizations governing space strategies and operations.
The South Korean government has laid out a three-phase plan to overcome these challenges. The first phase involves enhancing space surveillance and space intelligence support capabilities by 2025. The second phase focuses on boosting space operation capabilities by 2030. Finally, in the third phase, the government will build a large-scale strategic investment capability in space.
International Cooperation Strategy:
The signing of the space cooperation agreement between South Korea and the United States in April 2016 served as a catalyst for deepening and expanding collaboration between the two countries in this field. With 11 countries, including Russia, Canada, and France, also signing the U.S. space cooperation framework agreement that same year, the South Korea-U.S. agreement marked Washington’s recognition of Seoul’s space technology, elevating their relationship to a strategic alliance. The agreement includes cooperation in various areas such as space science, earth observation, and space exploration, providing an opportunity to develop South Korea’s space industry capabilities. In June 2021, South Korea became the 10th country to join “Artemis” (an international agreement led by Washington for space exploration), further enhancing space cooperation between South Korea and the U.S.
South Korea has also sought to expand space cooperation with emerging space nations, including Australia and the UAE. In November 2022, South Korea signed a Memorandum of Understanding (MoU) on space cooperation with Luxembourg, expected to open a new chapter in international space collaboration for Seoul. In May 2023, South Korea’s Ministry of Defense signed a “Letter of Intent for Defense Space Cooperation” with France’s Ministry of Defense. The two countries agreed to participate in international space exercises organized by France and conduct joint research on space policy.
South Korea has used international cooperation as a strategy to help its space industry access the global market. The Korean government provides comprehensive services to support local space companies in expanding globally by conducting surveys on external demand and assisting them in meeting regulations in key countries.
In conclusion, South Korea has achieved notable accomplishments in space, becoming the seventh country in the world to explore the moon in December 2022. During this period, the public sector took initiatives to enhance research capabilities and continuously expand infrastructure. Building on these achievements, Seoul is preparing to take a significant leap forward to become an emerging space power in the new space era. It aims to broaden its space policy from technology development to space exploration, science, and the establishment of missions for space development.
While South Korea possesses the basic capabilities to pursue space development independently, there remains a significant gap between it and more advanced space nations. Although Seoul has successfully developed small and medium-sized satellites and launch vehicles in a relatively short period, it has not yet been able to leverage these achievements to create economic impact or address social challenges. Additionally, the private sector’s ability to develop new markets and establish a self-sustaining space industry ecosystem is still lacking.
Source: Seungjoo Lee and Sangwoo Shin, “Evolution and Dynamics of the Space Industry in South Korea”, Asie.Visions, No. 137 Ifri, January 2024.
