(Source from Reuters/Alamy)

It appears that Korea’s semiconductor exports have decreased by about 45% to China. This was caused by the largest deficit since diplomatic relations between Korea and China.  Relations between South Korea and China deteriorated in 2017 due to the deployment of the THAAD (High Altitude Area Defense) system, which also affected exports of semiconductors, Korea’s popular products. However, Korea’s semiconductor exports declined due to China’s recent economic recession caused by the COVID-19 pandemic and China’s reduction in imports of South Korean products, however, improved Korea-China relations in 2018. Accordingly, Korea’s total foreign trade, in which semiconductor exports play the biggest role, has been weakening recently.  Competition in high-end semiconductor markets such as Korea is intensifying due to the development of China’s semiconductor industry, and Korea needs to make efforts to develop new technologies and secure export engines in the future.

(Source from Reuters/Alamy)

Due to uncertainties in the semiconductor market in China, Korean companies are preparing countermeasures such as diversifying export target countries and exploring new export markets. The decline is estimated to have been mainly due to uncertainties in the semiconductor market in China and trade disputes between the U.S. and China. As semiconductor producers entered the domestic market in China, import demand also decreased. Also, auto exports are also declining due to the slowdown in China. As of April 2022, South Korean carmakers’ exports to China fell 36.3% year-on-year. This is mainly due to the slowing economy in China and falling demand due to the COVID-19 pandemic. Meanwhile, Korean companies are preparing countermeasures against these difficulties. For example, we are strengthening our competitiveness by exploring new export markets and configuring various product lineups. It is also considering reducing its dependence on China by diversifying importing countries. Korean companies are trying to overcome the current difficult times and prepare for the future through these countermeasures. Korean companies are preparing various countermeasures to cope with this situation. These companies are developing new product lineups to strengthen their competitiveness in the semiconductor market in China and are pushing to diversify into other export markets. In addition, we are making efforts such as increasing technological innovation and R&D investment in Korea.

(Source from Reuters/Alamy)

On the other hand, China’s imports of Korean products are decreasing significantly. China’s imports of South Korean products fell 26.4% year-on-year in the January-August period of 2021, the report showed. This is estimated to be due to factors such as a slowdown in the Chinese economy and a trade dispute with the United States. However, the demand for Korean products in China is still high. In particular, the demand for Korean products is high in China’s IT and automobile industries. Therefore, Korean companies are trying to further strengthen their presence in these markets. Meanwhile, the Korean government is preparing countermeasures against these problems. South Korea and China have recently made efforts to strengthen bilateral economic cooperation and minimize trade barriers. Meanwhile, the Korean government is preparing countermeasures against these problems. South Korea and China have recently been trying to strengthen their economic cooperation. To this end, the Korean government is pushing for various policies to develop cooperative relations with China. For example, the Korean government is actively supporting Korean companies’ entry into China to solve the trade deficit with China. In addition, we are preparing measures such as improving the working environment of Korean companies in China and strengthening cooperation between governments. As these efforts are working, the profitability of Korean companies in China has recently been on the rise. Also, the Korean government is actively supporting technological innovation and R&D investment. This helps Korean companies maintain their competitiveness in the global market and develop new products. Finally, the Korean government is strengthening economic cooperation with China while maintaining economic relations with the United States. The Korean government is further strengthening economic cooperation with China, while at the same time maintaining economic relations with the U.S. and responding to trade disputes between the U.S. and China.

Sophia Kim

ASIA JOURNAL

Last November, eight Japanese companies decided to co-establish a Japanese national semiconductor company called “Rapidus” (which means “fast” in Latin) and develop next-generation semiconductors.

Toyota (No. 1 in the world in automobiles), Kioxia (No. 3 in NAND flash semiconductors), Sony (No. 1 in image sensor), NTT (Japan’s largest telecommunications company), Softbank (Chairman Masayoshi Son’s venture investment company), and NEC (industrial computer and server company). The world’s No. 1 semiconductor company in the 1990s), Denso (automobile parts company), and Mitsubishi UFJ (Japan’s leading financial group). Japanese companies with global competitiveness formed a dream team and united for “semiconductor.”

Rapidus plans to mass-produce high-tech semiconductors necessary for future technology fields such as supercomputers, smart cities, artificial intelligence (AI), and autonomous driving from 2027. In addition, Rapidus calls Japanese engineers working in Taiwan and the United States to their home countries to promote a strategy to produce semiconductors in the line width 2nm (1nm: 1 billionth of a meter). (2nm is a process that is expected to be used by world’s leading semiconductor companies such as Samsung Electronics, TSMC, and Intel from 2025.)

This is one of the government-level strategies for Japan to strengthen its semiconductor manufacturing capabilities in the mid- to long-term.

Japan, which dominated the top three semiconductors in the 1980s, including NEC, Toshiba, and Hitachi until the 1990s (at the time of 1988, Japan accounted for 50.3% of the global semiconductor market), felt that it needed its own semiconductor manufacturing capabilities after 30 years of decline. This started with Japan’s Ministry of Economy, Trade and Industry warning in a report last year that Japan’s share of the global semiconductor market will be close to “zero” by 2030.

In June 2021, Japan’s Ministry of Economy, Trade and Industry unveiled a strategy to strengthen foundry capabilities. The main point of this is to attract overseas foundries and combine them with the strengths of domestic semiconductor materials and equipment. As part of that, Japan attracted a Taiwanese foundry TSMC production line in its own country, and TSMC decided to produce factories in Kumamoto Prefecture through Japanese government subsidies and funds invested by companies such as Sony and Denso. The Japanese government has decided to invest up to 476 billion yen (about 4.5 trillion won) in TSMC, and it is moving to strengthen its semiconductor supply chain even by investing huge amounts of money.

In addition, the Japanese government announced plans to build a base for joint research and development with the United States in December. This means that Japan will learn know-how from the cooperation system with the U.S. and neighboring countries, revitalize the semiconductor industry, and prevent technology leakage, while expecting synergy between its own support policy and technology in neighboring countries.

However, there are many opinions that the biggest problem in the current Japanese semiconductor industry is a “lack of manpower.”

In an appeal to the Ministry of Economy, Trade and Industry last month, Japan’s Electronics and Information Technology Industries Association (JEITA) said, “The key is to secure enough talent to operate innovative semiconductor factories.” In particular, Hideki Wakabayashi, a professor at Tokyo University of Science and Technology, who heads the JEITA Semiconductor Policy Proposal Task Force, said, “The massive layoffs of engineers since the 2008 global financial crisis have been the starting point of the semiconductor industry’s manpower shortage.” According to data released by Japan’s Statistics Bureau, the number of semiconductor-related workers, including electronic components, devices, and circuits, stood at 240,000 last year, down 37% from 380,000 in 2010 11 years ago. “Although the global semiconductor industry has doubled by mid-2010, Japan has been different from other countries in terms of investment and employment,” said Kazuma Inoue, a consultant at Recruit. “It is currently difficult to find semiconductor experts in Japan despite active investment support from large companies such as Toshiba and Sony.”

With major global competitors such as the U.S., South Korea, China, Taiwan, and Europe making massive investments to foster the semiconductor industry, it is worth noting whether Japan will be able to rebuild its former semiconductor kingdom.

MIKE CHOI

ASIA JOURNAL

According to Reuters on the 11th, a company employee in China received an e-mail from the KLA legal team saying,

“We will stop selling and service to Chinese high-tech companies such as NAND flash with 128 levels or less, DRAM with less than 18nm (nanometers, 1 billionth of a meter) and advanced logic chip technology from 11:59 p.m.

The source added that KLA’s supply suspension will include a Chinese semiconductor plant owned by Intel and SK Hynix, the world’s second-largest memory semiconductor manufacturer.The measure is said to be in accordance with the full export control policy in the semiconductor manufacturing sector in China announced by the U.S. Joe Biden administration on the 7th. Earlier, the U.S. Department of Commerce announced regulations that would effectively ban domestic companies from exporting U.S. semiconductor equipment to Chinese semiconductor production companies. According to the report, foreign companies with production facilities in China must also obtain individual licenses after being separately reviewed by the U.S. authorities.

SK Hynix reaffirmed its position that it will apply for a license from the U.S. to continue operating its Chinese plant. Intel and KLA did not make any position.

Major Chinese semiconductor companies that are directly affected by U.S. export regulations are Yangtze Memory Technology (YMTC), Changshin Memory Technology (CXMT), and Semiconductor Manufacturing International (SMIC).KLA is considered one of the top semiconductor equipment manufacturers in the United States along with Ram Research and Applied Materials. According to the KLA’s financial report, China is KLA’s largest market, accounting for $2.66 billion, or 30 percent of total sales in the previous fiscal year (June).KLA’s stock price fell 4.7% the previous day due to the export regulations. The Philadelphia Semiconductor Index, a U.S. semiconductor industry stock, also fell 3.5 percent to its lowest level in about two years.

KS CHOI

ASIA JOURNAL

Washington(Reuters)China’s semiconductor industry is attempting a semiconductor independence policy through strong U.S. sanctions as the construction of a new factory is the largest in the world.

The United States excluded China.While pushing for Chip 4, a semiconductor supply chain alliance between the U.S., Japan, and Taiwan, it has been speeding up its passage of China’s semiconductor law to check, and China has also been immersed in its semiconductor independence policy.

According to the International Semiconductor Equipment and Materials Association (SEMI), China plans to build 31 major semiconductor production plants (Fabs) between 2021 and 2024. It is the largest in the world, surpassing Taiwan (19 places) and the U.S. (12 places) during the same period.

SEMI explained that China is rapidly expanding its semiconductor production facilities amid a global shortage of semiconductor supplies.

(Source from Reuters/Alamy) What should be noted is that China is focusing on expanding its capacity to produce old mid- to low-end semiconductors, not on cutting-edge process technologies that are less than 7 nanometers (1 billionth of a meter).However, Samsung Electronics held a 3nm (nanometer, 1 billionth of a meter) foundry (semiconductor consignment production) shipment ceremony at the V1 Line of Hwaseong Campus in Gyeonggi Province on the 25th.

Samsung Electronics is the first company in the world to mass-produce 3-nano process using GAA technology.
As high-tech semiconductor chip manufacturing technology lags far behind Korea, Taiwan, and the U.S., it can be seen as a strategy to dominate related demand by increasing mid- to low-end technology capabilities.
China is aiming for microcontroller units (MCUs), which are key semiconductors that control automobile electronic systems, and power supply semiconductors that are widely used in automobiles, smartphones, and other electronic products. “A large number of electronics do not require high-end chips,” it said.China’s attitude seems to be related to the fact that global semiconductor companies such as Taiwan’s TSMC, the world’s largest foundry company, do not invest much in mid- to low-end semiconductor production while focusing on cutting-edge processes.TSMC recently said that state-of-the-art semiconductor products with 7-nano or lower processes accounted for more than half of sales in the second quarter, and that it will continue to focus on high-tech semiconductor sales.
China has dug into this void.IBS, an IT industry consulting firm, predicted that demand for outdated 28-nano process semiconductors will more than triple to 28.1 billion dollars by 2030.It is also expected that 40% of 28nachips will be produced in China by 2025. As of 2021, China’s market share in global 28-nano semiconductor production was estimated to be 15%.If the United States and its allies do not seem to be investing enough in old semiconductor technology, then China will take up more supply chains in this sector. The U.S. Semiconductor Development Act, which has been drifting amid differences between the U.S. Senate and the House of Representatives, is speeding up its decision to legislate by separately separating 52 billion dollars (about 68.2 trillion won) of aid.If the law is passed, it could serve as an opportunity for the U.S. to foster its state-of-the-art semiconductor industry, but I think there is no way to check China, which expands its old chip production capacity.As tensions between the U.S. and China have risen since former President Donald Trump, China has been making every effort to reduce its dependence on semiconductor chips.According to IBS, China produced only 13% of semiconductors needed for its own country in 2017, but the proportion of its own production has increased to 26% this year.China aims to increase its share of self-produced semiconductors to more than two-thirds by 2025.China is investing more than $50 billion (about 65.6 trillion won) in semiconductor projects at the central government level, and separately, local governments are raising similar semiconductor investment funds. China is also giving various tax benefits to semiconductor companies.

(Source from Reuters/Alamy)SMIC, a major Chinese semiconductor company, is investing $8.9 billion (about 11.7 trillion won) to build a 28-nano semiconductor production plant in Shanghai with local governments. SMIC is not sparing money on purchasing semiconductor production equipment.The Biden administration is sanctioning and pressuring equipment sales in this move, and in fact, most of the core semiconductor technologies are also patent technologies in the United States.

MIKE CHOI

ASIA JOURNAL

Sales of Japanese semiconductor manufacturing devices are expected to exceed 4 trillion yen for the first time this year.
According to foreign media such as Nikkei, the Japan Semiconductor Manufacturing Equipment Association (SEFA) announced on the 7th (local time) that sales of semiconductor manufacturing devices in Japan will reach 4.283 trillion yen this year, up 17% from last year. This is the third consecutive year of increase, and the figure has been revised upward from the forecast of 3.55 trillion yen as of January this year.
SEFA predicted that active investment in logic and foundation, which has continued since 2019, will expand further after 22 years. He pointed out that investment is expected to increase not only in terms of increasing quantitative demand, but also in terms of evolution of performance and increasing the proportion of data centers and servers. “Semiconductors are becoming a major issue at the national level,” said Ushita Kazuo, chairman of SEFA. “It is clear that semiconductors will gradually become important and both quality and quantity will increase.” Regarding the shortage of semiconductors, Chairman Ushida expressed his perception that although the timing of resolution was not clear, it will continue for the time being.He also forecast a combined sales forecast for next year of 4.2297 trillion yen, up 5 percent from last January’s estimate. It is predicted that the forecast will increase by 5% to 4.4412 trillion yen in 2024, when the first forecast is presentedOn the 11th, the National Assembly passed the Economic Security Act, which aims to strengthen the semiconductor supply chain and develop and protect high-tech technologies. It will be implemented in phases starting next spring.According to Kyodo News, Japan’s economic security law focuses on strengthening the supply chain of important goods such as △ semiconductors △ preliminary screening of infrastructure industries in preparation for cyber attacks △ public-private cooperation for advanced technology R&D △ patent disclosure.While digitalization has been accelerated due to the lockdown measures that emerged as COVID-19 spread around the world, semiconductor supply shortages continue due to supply chain disruptions caused by the invasion of Ukraine. The growing awareness of the need to respond to the climate crisis and the active transition to electric vehicles and eco-friendly energy also suggests that demand for semiconductors will continue to increase in the future. In particular, Japan is making every effort to secure semiconductors. Until the late 1980s, Japan had invested generously in semiconductor production, overtaking the United States for more than half of its global market share. However, as the trade conflict with the U.S. intensified, Japan eventually handed over its share of the semiconductor market to South Korea, Taiwan, and China. As of 2019, Japan’s share of semiconductors fell to around 10%.
In a release on the semiconductor strategy released by Japan’s Ministry of Economy, Trade and Industry in June last year, the Japanese government issued a stern warning, saying, “Japan’s share could fall to almost 0% in the next 2030.” The remarks suggest that a sense of crisis is also rising within the government.”The semiconductor strategy is completely different from the general industrial policy of enhancing the competitiveness of domestic companies to earn foreign currency,” Kazumi Nishikawa, an official at the IT industry division, told the Financial Times. He added, “The biggest challenge is to form a consensus among people (on the importance of securing semiconductors) and to let people know that this is not entirely up to the private sector.”As a result, the Japanese government is trying to secure semiconductors through subsidies and external cooperation. In November last year, Japan succeeded in attracting TSMC, Taiwan’s No. 1 foundry company, to secure semiconductor production capacity. Instead of building a semiconductor production plant in Kumamoto Prefecture, Japan, it will provide about half of the total investment of 800 billion yen (about 7.96 trillion won).Taiwan’s TSMC announced that it will jointly build a semiconductor plant with Sony in Japan and start production in December 2024. However, there are criticisms in Japan that TSMC plants, which were attracted by giving large subsidies, have not applied the latest semiconductor technology. Semiconductors are advantageous in increasing performance because the thinner the line width of the circuit, the more devices can be integrated.Nikkei Asia noted that the circuit width of the semiconductor that the TSMC Kumamoto plant will focus on is 22 nanometers (nm, 1 billionth of a meter) or 28nm, far behind the latest 5nm process. However, 22nm and 28nm semiconductors are in high demand because they are used in various devices, including automobiles, and explained that they are a cost-effective option. After securing production facilities, Japan joined hands with the U.S. to develop advanced semiconductors. Through cooperation with the U.S., the company aims to take the lead again in developing and mass-producing advanced semiconductors that lag behind Korea and Taiwan.Japan’s Economy, Trade and Industry Minister Koichi Hagida agreed to cooperate in semiconductor research and development and strengthening supply chains in a meeting with U.S. Commerce Minister Lumondo on the 4th, Nihon Keizai (Nikkei) reported. It has decided to cooperate with the U.S. in developing high-tech semiconductors and mass-producing areas that lag behind Korea and Taiwan.Nikkei explained that the U.S. and Japan’s cooperation in the semiconductor field aims to catch up with South Korea and Taiwan in 2nm products and develop cutting-edge products that exceed 2nm first. In addition to the U.S. and Japan, the two ministers also mentioned that they share the purpose of strengthening supply chains in countries and regions that share the same intention.South Korea and Taiwan, which are already ranked first and second in the semiconductor industry, are in the process of mass production of 2nm products. Taiwan’s TSMC is preparing to mass-produce 2 products for smartphones and supercomputers, while South Korea’s Samsung Electronics is also planning to mass-produce 2nm products from 2025.In the meantime, the goal is to quickly catch up with South Korea and Taiwan by strengthening cooperation between the U.S. and Japan. IBM in the U.S. also succeeded in producing 2nm prototypes last year, and it seems that it can record high efficiency at a time when equipment companies such as Tokyo Electron and Canon in Japan are already participating in IBM’s production plan. In addition to 2nm products, Nikkei noted that Intel’s chiplet technology in the U.S., which combines multiple semiconductors to increase semiconductor performance, could be the subject of development.Still, Japanese experts remain concerned that the bureaucratic Japanese government may have entered

Sales of Japanese semiconductor manufacturing devices are expected to exceed 4 trillion yen for the first time this year.

According to foreign media such as Nikkei, the Japan Semiconductor Manufacturing Equipment Association (SEFA) announced on the 7th (local time) that sales of semiconductor manufacturing devices in Japan will reach 4.283 trillion yen this year, up 17% from last year. This is the third consecutive year of increase, and the figure has been revised upward from the forecast of 3.55 trillion yen as of January this year.

SEFA predicted that active investment in logic and foundation, which has continued since 2019, will expand further after 22 years. He pointed out that investment is expected to increase not only in terms of increasing quantitative demand, but also in terms of evolution of performance and increasing the proportion of data centers and servers. “Semiconductors are becoming a major issue at the national level,” said Ushita Kazuo, chairman of SEFA. “It is clear that semiconductors will gradually become important and both quality and quantity will increase.” Regarding the shortage of semiconductors, Chairman Ushida expressed his perception that although the timing of resolution was not clear, it will continue for the time being.

He also forecast a combined sales forecast for next year of 4.2297 trillion yen, up 5 percent from last January’s estimate.

It is predicted that the forecast will increase by 5% to 4.4412 trillion yen in 2024, when the first forecast is presentedOn the 11th, the National Assembly passed the Economic Security Act, which aims to strengthen the semiconductor supply chain and develop and protect high-tech technologies.

It will be implemented in phases starting next spring.

According to Kyodo News, Japan’s economic security law focuses on strengthening the supply chain of important goods such as *semiconductors * preliminary screening of infrastructure industries in preparation for cyber attacks * public-private cooperation for advanced technology R&D* patent disclosure.

While digitalization has been accelerated due to the lockdown measures that emerged as COVID-19 spread around the world, semiconductor supply shortages continue due to supply chain disruptions caused by the invasion of Ukraine.

The growing awareness of the need to respond to the climate crisis and the active transition to electric vehicles and eco-friendly energy also suggests that demand for semiconductors will continue to increase in the future.

In particular, Japan is making every effort to secure semiconductors.

Until the late 1980s, Japan had invested generously in semiconductor production, overtaking the United States for more than half of its global market share.

However, as the trade conflict with the U.S. intensified, Japan eventually handed over its share of the semiconductor market to South Korea, Taiwan, and China. As of 2019, Japan’s share of semiconductors fell to around 10%.

In a release on the semiconductor strategy released by Japan’s Ministry of Economy, Trade and Industry in June last year, the Japanese government issued a stern warning, saying, “Japan’s share could fall to almost 0% in the next 2030.

” The remarks suggest that a sense of crisis is also rising within the government.”The semiconductor strategy is completely different from the general industrial policy of enhancing the competitiveness of domestic companies to earn foreign currency,” Kazumi Nishikawa, an official at the IT industry division, told the Financial Times. He added, “The biggest challenge is to form a consensus among people (on the importance of securing semiconductors) and to let people know that this is not entirely up to the private sector.

“As a result, the Japanese government is trying to secure semiconductors through subsidies and external cooperation. In November last year, Japan succeeded in attracting TSMC, Taiwan’s No. 1 foundry company, to secure semiconductor production capacity.

Instead of building a semiconductor production plant in Kumamoto Prefecture, Japan, it will provide about half of the total investment of 800 billion yen (about 7.96 trillion won).Taiwan’s TSMC announced that it will jointly build a semiconductor plant with Sony in Japan and start production in December 2024. However, there are criticisms in Japan that TSMC plants, which were attracted by giving large subsidies, have not applied the latest semiconductor technology.

Semiconductors are advantageous in increasing performance because the thinner the line width of the circuit, the more devices can be integrated.

Nikkei Asia noted that the circuit width of the semiconductor that the TSMC Kumamoto plant will focus on is 22 nanometers (nm, 1 billionth of a meter) or 28nm, far behind the latest 5nm process. However, 22nm and 28nm semiconductors are in high demand because they are used in various devices, including automobiles, and explained that they are a cost-effective option.

After securing production facilities, Japan joined hands with the U.S. to develop advanced semiconductors.

Through cooperation with the U.S. the company aims to take the lead again in developing and mass-producing advanced semiconductors that lag behind Korea and Taiwan.

Japan’s Economy, Trade and Industry Minister Koichi Hagida agreed to cooperate in semiconductor research and development and strengthening supply chains in a meeting with U.S. Commerce.

KS Choi

ASIA JOURNAL

The global space industry is growing rapidly, with the size of the space industry rising 4.4% year-on-year to $447 billion in 2020. Considering that the global semiconductor market is about $439 billion in 2020, it is easier to understand the size of the space industry, its impact on the national economy, and its growth potential.

This is because space development in the private sector is increasing and investment and finance in space startups are increasing. Therefore, countries around the world continue to make policies and investments to promote space development as a key policy and foster it as a key engine for future national growth. The United States is taking the lead in fostering the space industry to secure future national interests. China, Japan, the United Kingdom, and Australia are also increasing their space-related budgets and strengthening policies to foster the space industry.

As promising space industries in the future, ultra-small satellites, numerous satellite big data services produced by satellites, and businesses for launching ultra-small satellites are promising. SpaceX and Blue Origin started as startups and have grown into global space companies leading the space market today. According to the Guide to the Space Technology Industry, the total value of space companies around the world has exceeded $4 trillion and is expected to reach $10 trillion by 2030.

Space development has a widespread impact on all industries, and in the case of broadcasting and communication industries through satellites, new industries are created through the development and production of TVs, cell phones, semiconductors, satellite receiving devices, and GPS receiversMitsubishi Heavy Industries is the company that Japan has put forward as a representative player to grow the space industry. I have been to the Nagoya rocket factory, which makes H-2A rockets, Japan’s flagship rocket, which is rarely disclosed to foreigners. H is an English alphabet referring to hydrogen, which means liquid hydrogen as fuel for rockets. Liquid hydrogen is a high-level technology that can easily explode with a little mishandling, and only spacecraft advanced countries use it, while South Korea uses kerosene, or kerosene-fueled rockets, such as Russia and the U.S. SpaceX. Even if kerosene is used as fuel, there is no problem at all in generating rocket power and propulsion.During a visit to a Japanese rocket factory, Shoichiro Asada, head of the rocket department in Mitsubishi, once asked, “How did the state-led space industry become led by private companies such as Mitsubishi?” Since space development costs a lot of money in the early stages, space development was led by the state and failed in many cases, but since it was led by the state, the budget continues to be invested to build the foundation for space technology. If the rocket’s technology is confirmed to be satisfactory, it will make money by transferring state-led space development to the private sector to industrialize space development and develop it into a lucrative industryThe Japanese government gave Mitsubishi a precondition that it should launch at least three satellites a year, but two of them should be ordered by the government and the other should be paid to launch foreign satellites instead. Therefore, in 2012, Arirang-3 satellite was put into low orbit by a Japanese rocket at a dumping price of 12 billion won cheaper than Russia, which was a competitor for launch costs. This is the first time in Japanese history that a foreign satellite was launched on behalf of a foreign satellite for money. Our money spent on satellite launches falls in Japan.

Japan, which has its own rocket, can launch its own satellites at any time, including weather satellites, military intelligence satellites, GPS satellites, and asteroid exploration satellites, so it does not have to carry them into French Aryan rockets and pay as much as 70 billion won. It is a sad reality in Korea without its own rocket. So we have to push ahead with the space industry quickly.

The space industry has grown in three stages over the past 60 years. The first stage was the product of the Cold War era, in which the U.S. and the U.S. competed for space development with the success of the Soviet Sputnik rocket.

The second was the time when the purpose of space development began to diversify with the Apollo 11 moon landing in 1969. The third stage refers to the time when practical satellite services such as broadcasting satellites, communication satellites, weather satellites, and navigation satellites were used as important infrastructure for the nation as well as daily life. In future space development, the “commercialization” of the universe will advance faster, with private companies entering space development, and the movement to secure economic benefits and national interests through space development such as space exploration and securing space resources will be stronger.

In Korea, the number of companies participating in the space industry is gradually increasing in the process of developing the cruise rocket Nuri, which is scheduled to be delayed several times due to the weather on the 21st. Among them, Hanwha Aerospace was in charge of engine assembly, turbo pump production, and engine test facilities for Nuri rocket, and Hyundai Heavy Industries built a second launch pad for Nuri launch based on its experience when it launched Nuri in cooperation with Russia. Hyundai Rotem also participated in the construction of test facilities for propulsion institutions, and the pairing, a satellite protection cover, was made by Huiba Korea.The Korea Aerospace Industries (KAI) is also in charge of building the Nuri rocket, a three-stage rocket, and is currently speeding up the era of private satellite development by leading the development of the next-generation mid-range satellite 2. Small satellites have also been exported by Setrek Eye, and as Hanwha Aerospace acquired them and the era of small satellites is coming, the future of this field is hopeful, but the space industry is generally small.

Compared to the rapid movement of spacecraft development countries, Korea’s space development is significantly lacking compared to spacecraft development countries in terms of organization, manpower, and budget. The size of the domestic space industry is 3.261 trillion won as of 2020, which is only 1% of the global space industry. The market structure of the domestic space industry is very weak, and it is difficult to find market competition between companies due to the R&D-oriented market structure. There are a total of 359 space development companies, of which 321 are (89.4%) are small and medium-sized companies and 227 (63.2%) account for less than 1 billion won in annual sales.

KilSeng Choi

ASIA JOURNAL