South Korea’s aerospace agency held a roundtable with domestic insurers on Monday to address a gap that officials say threatens the country’s growing private space sector: the absence of a mature space insurance market.
The Korea Aerospace Administration (KASA) convened its sixth Aerospace SOS Roundtable at the Defense Industry Mutual Aid Association in Jung-gu, Seoul, bringing together representatives from the domestic insurance industry to discuss ways to strengthen the space insurance ecosystem.
The meeting came as privately led commercial satellite launches increase in South Korea, with domestic space companies taking on a larger role in launch services. KASA said that despite rising demand, the foundation of the country’s space insurance market remains weak.
A central concern raised at the roundtable was the domestic insurance sector’s heavy reliance on overseas reinsurance markets to cover risks, The Asia Business Daily reported. Given the high costs and unique hazards associated with the space industry, insurance premiums remain steep – a burden that, according to KASA, effectively prevents cash-strapped startups from entering the market.
The urgency of the discussion was underscored by recent developments in South Korea’s commercial space sector. In December, South Korean startup Innospace failed in its first orbital launch attempt when its Hanbit-Nano rocket crashed shortly after liftoff from Brazil, highlighting the financial risks faced by private launch operators.
Meanwhile, the fourth launch of the Nuri rocket in November marked a milestone in South Korea’s transition toward a private-sector-led space industry. The mission was the first conducted with Hanwha Aerospace taking a leading role in manufacturing and assembly after receiving full technology transfer and exclusive production and launch rights for the Nuri rocket through 2032.
Industry representatives identified the establishment of clear criteria for risk assessment and premium calculation as the top priority for developing the space insurance market. They also cited a shortage of professionals with expertise in the space industry and the limited size of the domestic market as additional challenges.
Among the measures proposed were revisions to laws and regulations governing space insurance eligibility and liability limits, the development of standard policies and guidelines, the training of space insurance specialists, and government support to help establish an initial market.
KASA administrator Tae-seog Oh said the agency intends to act on the input gathered from the insurance sector.
“Space insurance, which covers the risks of private space activities, is a key infrastructure for the sustainable growth of the space economy,” Oh said. “We will actively incorporate the opinions of the insurance industry to prepare support measures so that domestic space companies can take on challenges with confidence.”
KASA said it plans to review support measures and accelerate the establishment of an institutional framework to give private companies greater certainty in pursuing launch services and satellite businesses.
