Evolution of the Korean Aerospace Industry in the Age of NewSpace

Since roughly 2015, the world has been witnessing the dawn of the age of “NewSpace,” with space now being explored by a new set of parties for a set of purposes distinct from those of the past. NewSpace is commonly used to refer to the private sector’s growing leadership in space exploration, replacing government initiatives and space endeavors with private enterprises developing products and services for consumers.NewSpace presents a host of new challenges and opportunities for related industries. First and foremost, the explosive growth of the number of satellites and launch vehicles (also known as launchers or rockets) sent into space is helping establish an economy of scale for the aerospace industry.The Korean government has begun to introduce policy support measures to facilitate the transition into NewSpace. These measures include the Space Development Promotion Act and the Small Satellite Development Roadmap. Korean aerospace, however, still remains by and large dependent on public procurement and contracting. This study explores and recommends policy changes necessary to encourage a successful industrial adaptation to NewSpace. These policies include measures for creating economies of scale and setting competitive prices, incrementally building a system of development and production led by the private sector, and increasing public and government investment in enhancing the industry’s competitiveness