- First Step Toward Revitalizing the Space Insurance Market Through On-Site Communication in Preparation for the Private-Led Space Economy
The Korea AeroSpace Administration (KASA, Administrator Taeseog Oh) visited the Korea Defense Guarantee Cooperative in Jung-gu, Seoul, on Tuesday, May 26, and held the 6th Aerospace SOS* Consultation Meeting with representatives from the domestic insurance industry, including the cooperative.
* A communication channel launched in February to respond swiftly to difficulties faced by aerospace companies and identify on-site solutions.
KASA Administrator Taeseog Oh has consistently emphasized the importance of commercial launch services in fostering the growth of the space economy, noting the need to actively expand the number of domestic and international commercial satellite launches to more than two per year.
The meeting was organized to hear firsthand perspectives from the insurance industry and explore ways to revitalize Korea’s domestic space insurance market to support stable private satellite launches and the operation of space assets.
Prior to the meeting, KASA officials reviewed the current status of domestic space insurance underwriting. The review found that the limited underwriting capacity of domestic insurers and the heavy reliance on overseas reinsurance markets have increased cost burdens on private space companies and created barriers to entry for innovative startups.
* Due to the high-cost and high-risk nature of the space industry, domestic insurers typically distribute risk by purchasing reinsurance from overseas insurance companies.
Participants also agreed that revitalizing the domestic space insurance market should go hand in hand with efforts to strengthen the stability and global competitiveness of Korea’s private space companies.
Representatives from participating companies agreed that revitalizing the domestic space insurance market would require clear standards and specialized personnel capable of accurately assessing risks and calculating insurance premiums. They also emphasized that sufficient market demand must first be established to enable the development of viable insurance products.
The participants proposed several policy measures, including: improving legal frameworks related to space insurance coverage and liability limits; developing standard policy terms and operational guidelines for space insurance; developing a pool of specialized professionals and providing technical advisory support; and offering government support to help establish the initial market.
Administrator Taeseog Oh emphasized that “space insurance, which provides risk coverage for private space activities, is an essential infrastructure for the sustainable growth of the space economy.”
He added, “KASA will actively listen to the difficulties faced by the domestic insurance industry and review a range of support measures so that Korean space companies can innovate with confidence, while enabling the domestic space insurance market to grow alongside the broader space economy.”