The private sector should take the initiative in South Korea’s space development, currently led by state-run institutes, and foster the ground equipment and satellite communication service industries for the country to ascend as a space powerhouse, a report suggested Tuesday.

The Federation of Korean Industries, a Korean business group, examined the current status of the aerospace industry and suggested development plans through a report commissioned by Kwak Shin-woong, a professor at Kookmin University, an expert in the aerospace industry.

In the case of the US, the space industry is rapidly developing due to innovation by private space companies, the role of which is expected to expand after Donald Trump returns to the White House, the report said.

“To not fall behind in the global trend, Korea’s technologies developed by state-run research institutes should be transferred to the private sector, and space development should be shifted from state-run research institutes to private-led,” Kwak said.

He pointed out that a small space budget hampers Korea from entering the global space industry competition. The level of core technology related to satellites and projectiles is far behind that of the US, Japan and China.

As of 2022, the US space budget stood at $69.5 billion while that of Korea was only $600 million.

Korea's space budget represented 0.03 percent of gross domestic product, far behind that of major rivals in the sector. The US's stood at 0.28 percent, Russia's at 0.15 percent, Japan's at 0.09 percent, and China's at 0.09 percent.

Given the limited budget, Korea should opt for a focus strategy instead of following all areas promoted by advanced space countries.

“The satellite communication industry, such as ground equipment and satellite communication services, which account for nearly 70 percent of the space industry, should be fostered first,” Kwak claimed.

He added that the manufacturing cost of projectiles should be drastically lowered by tossing satellite launches carried out by the government and public sector to the private sector, while encouraging private-led cost reduction and technology development activities.

“Private space companies should also go beyond government support and make efforts to raise large-scale funds through overseas venture capital with business plans prepared based on creative technology of their own,” the report suggested.

It also highlighted the need for advancing orbital information processing technology, such as developing new AI satellite technologies required to control hundreds of satellites and analyze tens of thousands of satellite images, and speeding up the download of large-capacity satellite images.

Kwak suggested that private access to space infrastructure, such as launch sites and combustion test facilities, should be guaranteed and technical support from related experts should be provided at the same time.