Government to create fund to foster private space sector

Industry

Published: 07 Mar. 2023, 16:31

Government to create fund to foster private space sector

President Yoon Suk Yeol looks at a small-scale space launch vehicle during a meeting with researchers, investors, students and businesspeople in the space sector at the presidential office in Yongsan District, central Seoul, on Feb. 21. [YONHAP]

The government will create a 50-billion-won ($38.5 million) fund for space startups by 2027, the Ministry of Science and ICT said Tuesday.

The government-backed fund-of-funds, operated by the Korea Venture Investment Corp, will be dedicated to investing in the private space sector.

The Ministry of Science and ICT will accept applications from potential asset operators for the fund from April 3 to 7.

The ministry will invest 5 billion won to raise a 10-billion-won fund-of-funds this year, with the goal of building a 50-billion-won fund by 2027.

The program is aimed at fostering the private space sector in the private-led new space era.

The fund is the first of its kind in Korea.

As the fund aims to foster the space sector in general, all space-related companies will be qualified for investment, said the ministry.

“While many private space startups are leading the new space era overseas, the local space industry is still in its infancy, and therefore the majority of local space companies are small or in their early stage,” said the Science Ministry in a release.

The fund will provide support for local space companies that have growth potential but lack financing.

“In order to put the Korean space economy on track, vitalizing the private space startup ecosystem is essential,” said Cho Sun-hak, director general of the space and big science policy division at the Ministry of Science and ICT.

“We expect the fund will be at the forefront of pioneering the space economy,” Cho added.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]