The Wall Street Journal (WSJ) reported on the 10th, citing sources. Sources said the two sides are discussing ways to allow Saudi state-owned companies to buy mining shares in African countries, including the Democratic Republic of Congo (DR Congo), Guinea and Namibia, and U.S. companies to purchase some of the minerals produced by Saudi companies.Core metals such as lithium and cobalt, which are needed to supply power to electric vehicles and smartphones, are highly dependent on China. Although reserves are abundant in South America and Africa, respectively, China has jumped into resource development early and has grown its influence in the refining market. Chinese companies refine about three-quarters of the world’s cobalt supply, and about 70% of the world’s lithium-ion batteries are also produced in China.The U.S. is trying to enter Africa to curb China’s dominance in the electric vehicle supply chain. However, it is not easy for U.S. companies to enter the market due to corruption of local governments in Africa. This is because he could be investigated for violating the U.S. Foreign Corruption Prevention Act (FCPA) after delivering bribes to local officials.As Saudi Arabia has long maintained an important position in the world of crude oil, it is also trying to increase its influence by actively investing in the mining world. Saudi Arabia also plans to invest more flexibly in corrupt countries and actually invest $15 billion to develop African mines. Analysts say that it can mobilize large-scale capital to attract developing countries like China. “The White House has contacted several countries, but talks with Saudi Arabia have progressed the most,” he said.

KS CHOI

US ASIA JOURNAL

Following the Supreme Court’s rejection of President Biden’s previous student loan forgiveness program, the administration has embarked on an alternative route to offer relief to student debt holders. More than 4 million individuals have already signed up for President Joe Biden’s new repayment program, known as SAVE (Saving on a Valuable Education). This initiative aims to reduce their monthly financial burdens as student loan payments prepare to resume in October following a pandemic-related suspension that lasted for several years. The Biden administration has already implemented measures to simplify the process for numerous borrowers to pursue federal student loan forgiveness through various existing debt cancellation programs. To date, these efforts have resulted in the approval of approximately $116 billion in loan discharges benefiting more than 3.4 million individuals through August. Launched in the summer, the SAVE plan is accessible to most federal student loan recipients and offers substantial relief to those grappling with student debt. Similar to other income-driven repayment programs, SAVE assesses monthly payments based on a borrower’s income and family size, regardless of the total outstanding student debt.  For instance, if a single borrower earns $32,800 or less annually, or if a borrower with a family of four earns $67,500 or less, their monthly payments under SAVE can be as low as $0. This means that under the SAVE plan, individuals with lower incomes or larger families may have their monthly student loan payments reduced to zero, making it more manageable for them to handle their student debt. Notably, many of those who enrolled in SAVE were formerly part of a different repayment plan, REPAYE (Revised Pay As You Earn), and were transferred automatically. For borrowers who were not previously enrolled in REPAYE, applying for the SAVE plan is necessary. To date, over 1 million individuals have submitted applications, according to the Department of Education’s recent announcement.

Applicants will have the opportunity to apply continuously, but they are encouraged to do so promptly if they wish to be enrolled by the time payments become obligatory in October. As of September 1, interest has started accruing on federal student loans for the first time since March 2020 when interest rates were effectively set at 0%, and borrowers were exempt from monthly payments. Borrowers can expect to receive a bill from their loan servicer at least 21 days before their October payment deadline. Although President Biden’s proposal to cancel up to $20,000 in student loan debt for low- and middle-income borrowers before payments resumed was rejected by the Supreme Court in late June, the SAVE plan offers ongoing benefits to both current and future borrowers. This repayment plan was initially announced by the Biden administration in August and is estimated to cost $475 billion over the next decade, as per the Penn Wharton Budget Model.

JULIE KIM

US ASIA JOURNAL

As a result, it is said that there are still obstacles to the sharing of information between the U.S. and Japan.Citing former and current U.S. officials, the Washington Post (WP) reported that a Chinese military hacker succeeded in penetrating Japan’s secret military network at the end of 2020. “The situation at the time was shockingly bad,” a former official told the newspaper.  Hackers reportedly broke into Japan’s most secure network and tried to secure as much information as possible on operational plans, assets, and military flaws.There was also a situation where we could guess how urgent the situation was at that time. Paul Nakasone, then director of the U.S. National Security Agency (NSA), and Matthew Pottinger, then deputy assistant to the White House National Security Council, who first confirmed the hacking, immediately flew to Japan and delivered it to the Japanese defense secretary, which was later reported to the Japanese prime minister.

In response, Japan has set a policy to increase its cybersecurity budget by 10 times and nearly quadruple its military cybersecurity workforce to 4,000 over the next five years to strengthen network security. However, it is known that Japan’s confidential security network was not completely restored in 2021, after the Biden administration was launched. At that time, the hacking incident was detected during the Trump administration. As the situation turned like this, U.S. Defense Secretary Lloyd Austin reportedly conveyed his position to the Japanese government that “if cybersecurity is not secured, information sharing between the U.S. and Japan could be slowed.” Japan, the United States’ strongest ally in the Indo-Pacific, has so far been provided with various U.S. military information in real time more closely than South Korea. The issue is also expected to be discussed at the Korea-U.S.-Japan summit, which is scheduled for the 18th. The “Washington Declaration” adopted during President Yoon Suk Yeol’s state visit to the U.S. in April strengthened the security alliance between South Korea and the U.S., and the U.S. has been working hard to build a security alliance between South Korea, the U.S. and Japan. “Despite the Japanese government’s tightening of security at the time, military information exchanges between the U.S. and Japan are still disrupted,” he said. This is why some observers say that if there are still problems in sharing information between the U.S. and Japan, the triangular cooperation envisioned by the U.S. may not go as planned.Meanwhile, Chinese military hackers accessed the Microsoft (MS) cloud network last month and hacked the e-mail accounts of high-ranking U.S. officials, including Commerce Secretary Lumondo. Microsoft announced on the 11th of last month (local time) that 25 organizations, including the U.S. State Department and the Department of Commerce, were attacked by a Chinese-based hacker organization called Storm-0558. However, the government did not specify China as the main agent of the hacking, as high-level conversations between the U.S. and China, including Minister Blinkon and Minister Yellen’s visit to China, began to open the door.

TED PARK

US ASIA JOURNAL

The Supreme Court has ruled against President Joe Biden’s federal student loan forgiveness plan, delivering a significant setback to borrowers who were promised loan forgiveness. The 6-3 majority decision stated that at least one of the six GOP-led states challenging the program had legal standing to do so. The court concluded that the President did not have the authority to instruct the Education Secretary to cancel a large amount of consumer debt without Congress’s authorization. The ruling denies millions of Americans the opportunity to have up to $20,000 of their student debt erased. The amount of federal student debt has more than tripled in the last 15 years, increasing from approximately $500 billion in 2007 to $1.6 trillion as of current. Chief Justice John Roberts, in the majority opinion for Biden v. Nebraska, expressed skepticism about the President’s plan and its potential harm to the Missouri Higher Education Loan Authority (MOHELA).

Roberts argued that the plan would have reduced profits for MOHELA and negatively impacted Missouri’s economy. However, legal experts and advocates criticized this reasoning, pointing out that MOHELA’s revenue was expected to rise due to recent departures of other student loan servicers in the industry. President Biden called the Supreme Court’s decision wrong and accused Republicans of hypocrisy, highlighting their support for pandemic-related loans to businesses while opposing relief for hard-working Americans. “Today’s decision has closed one path. Now we’re going to start another,” he said from the White House. Advocates for student loan borrowers expressed disappointment and called the ruling a betrayal, emphasizing the need for an impartial court to decide on borrowers’ financial futures. The Supreme Court’s decision is seen as a major win for plaintiffs who sought to block the forgiveness program, as they were concerned about government interference in the lending sector. Critics of Biden’s plan, which was estimated to cost $400 billion, argued that it was expensive, inflationary, and poorly targeted.

They believe the ruling puts an end to costly cancellation schemes and encourages finding alternative solutions to improve the affordability of higher education. The lack of a Supreme Court ruling until now has caused anxiety among borrowers eagerly awaiting a decision. Legal experts attribute the delay to the complexity and significance of the case, as there is no precedent for such a sweeping debt forgiveness plan. The court had to consider issues surrounding Biden’s authority, legal standing of the plaintiffs, and potential harm caused by the relief program. While borrowers hoped for a ruling before the end of the term, it is likely that the decision will be announced by early July. The justices tend to write detailed opinions in high-profile cases, aiming to demonstrate legal reasoning rather than partisan bias. However, there is a slight possibility of the court seeking further oral arguments, which would delay the final decision until the next session starting in October or later.

JULIE KIM

US ASIA JOURNAL

Other Asian countries are also suffering from record heat. In Singapore, daytime temperatures soared to 37 degrees Celsius on the 13th, the highest in 40 years. Vietnam hit an all-time high of 44.2 degrees earlier this month, and the Philippines shortened school hours as its thermal index (feeling temperature) reached the “dangerous” level. On the 14th of last month, Thailand’s northwest Tak region had a thermal index exceeding 50 degrees. The thermal index is a sum of humidity and temperature, and it is very dangerous if it exceeds 55 degrees.High temperatures have also continued since the 14th in the Pacific region in the northwest of the U.S. In Seattle, Washington, the highest temperature record as of May 14 was broken, and in Fresno, California, temperatures are expected to rise to 38 degrees this week. In Alberta, Canada, high temperature and dry weather have caused up to 90 wildfires. World Meteorological Characteristics, a multinational climate research group, recently said, “An abnormal high temperature of 36.9 to 41 degrees occurred in Spain, Portugal, Morocco, and Algeria from the 26th to the 28th of last month, which happens once every 40,000 years before global warming.

“In Korea, daytime temperatures in Gangneung hit a record high of 35.5 degrees in May, and temperatures in most parts of the country, including 33.7 degrees in Pohang, 33.6 degrees in Daegu, and 30.0 degrees in Seoul, were far above average. Sokcho and Donghae re-recorded the highest temperature in May at 34.4 degrees and 33.5 degrees, respectively.Experts predict that extreme climate phenomena will become more frequent due to the influence of El Nino in the second half of this year. Zhou Bing, a senior expert at China’s National Climate Center, warned, “El Nino will cause an inevitable abnormal climate phenomenon around the world.” Meanwhile, the U.S. announced a plan to purchase 3 million barrels of strategic reserve oil, raising concerns over rising oil prices and energy supply and demand this summer.

Sophia Kim

US ASIA JOURNAL

While Korean cultural contents such as K-drama (Squid Game), K-pop (BTS/Black Pink, etc.) and K-Webtoon are making strides around the world, the 4th Korean Wave (Korean Wave spread around online platforms such as Netflix) is also taking place in Japan.

According to The Nikkei, “Korea’s cultural content exports are expected to double in 2021 from five years ago,” and “Korea is far ahead of Japan in the content industry.” According to the Korea Creative Content Agency, Korean cultural content exports are expected to reach 11.56 billion dollars (about 13.8315 trillion won) in 2021, up 7% from the previous year. This is nearly twice as much as five years ago (about $6.01 billion). Regarding the broadcasting content sector, such as dramas that are popular in Japan, they said, “It is difficult to compare simply because the standards are different,” but added, “Korea’s broadcasting content exports (77 billion yen) exceeded Japan’s exports (53 billion yen) in the same year.”

“Since October last year, when the squid game, which caused a global syndrome, has been released, three to four Korean works have been steadily listed in Netflix’s top 10 non-English program viewing rankings”, they said, analyzing that such success is leading to the popularity of other Korean Wave contents. Regarding K-pop, they said, “Other popular singers such as BLACKPINK continue to come out, starting with BTS.” Comics, Japan’s proud content, is also giving way to Korea’s “Webtoon platforms” such as Pickcoma (Kakao) and Line Manga (Naver). As Naver and Kakao compete for the supremacy of webtoons read on smartphones, cartoonists around the world are increasingly posting their works on the platforms of the two companies

Along with the COVID-19 pandemic, this fourth Korean Wave is shifting to interest in various consumer products such as K-package bars, K-hair, K-food, and K-beauty.

Restaurants that seem to resemble Korean cart bars have opened everywhere from Shibuya, where young people gather, to Shinbashi, which is called the “sacred place of salaried men.” A store that sells “Korean-style fat macarons” has entered Ginza, the richest village in Tokyo.

Young people are attaching the word “Korean style” here and there. Words such as “Korean-style cafe” and “Korean-style interior” are commonly used on social media. Korean style is a generic term for Korea’s sophisticated atmosphere that can be seen on Instagram, and it is an atmosphere where you must search for “Korean style hair” before going to a hair salon.

” Tokan Gokko,” which makes you feel like traveling abroad after buying Korean food – Japanese women in pajamas are taking proof shots with Korean ramen and beverages piled up at hotels in Japan. Recently, the so-called “Tokan Gokko”,  which eats Korean food, consumes content, and makes you feel as if you are on a trip to Korea, is in vogue in the younger generation of Japan.

Japan, the world’s third largest cosmetics market, is known as a “barometer” of global beauty recognition. As such, it is also considered a battleground for imported cosmetics. Among K-beauty, mask packs and liquid lipstick are driving the popularity. At the 2021 Cosme Week Tokyo, the largest cosmetics exhibition held in Tokyo last year, Korean beauty companies “Medi Hill” and “Romand” ranked first in the mask pack and lipstick categories, respectively. It is also meaningful that it is growth centered on small and medium-sized companies, not on large Korean companies. Wearing a mask due to COVID-19 has become a daily routine, and there is a strong tendency to prefer basic makeup that does not burden the skin by omitting foundation. Thanks to the success of Korean dramas through Netflix, local affinity for K-beauty has increased.

Three to four years ago, exports of consumer goods through offline buyers were the main focus, but products that had good consumer response online were linked to offline entry due to lower barriers to online entry.

MIKE CHOI
ASIA JOURNAL

Nature is always around people, but we live without feeling the importance of it.

However, when people are physically and mentally struggling due to diseases such as COVID-19, people say that they should stay closer to nature, but most people often don’t know how to encounter and stay close to nature, and most people think of it first.

However, most people are unable to make it because they do not have enough time or money to do so.

Currently, the National Natural Recreation Forest Management Office of the Korea Forest Service is planning and promoting various projects to provide various forest cultures so that all Koreans can enjoy the forest comfortably.

There is now a need for a place where people should feel tired and comforted by long-term economic difficulties and long-lasting illness

If you enjoy relaxing in the forest, it will be very helpful to relieve physical and mental fatigue.

There are so many mountains all over the country in Korea. The National Recreation Forest Management Office established an experience center on a mountain in the Gapyeong area so that people can recognize the forest as a nearby existence rather than a distant one and approach it more comfortably.

In order to make many people come to play, I think it should not be attractive to only certain groups, so we are promoting it to be used as a place for education such as hands-on learning for children. The newly developed interactive system helps people who come to experience more explain and understand the story. It will be very interesting and interesting to those who experience it because the sound of various appropriate texts or graphic images changes and reacts according to the behavior of the person who is experiencing it.

In the past, if you simply walked through the forest and experienced what the commentator said in a way such as listening to one-sided explanations or watching videos separately, you can now communicate in both directions.

It is very good that there are many places to feel nature like this, and if people feel close to nature, they will know that it is more important to the natural environment and forest.

This is because these experiences are more memorable to people than just listening to them in words.

If the project of the National Recreation Forest Management Office is known far away, I hope it will be recognized as a place where various people can come and experience and comfort and use it often.

SOPHIA KIM

ASIA JOURNAL

The development area between Jeonju and Gunsan, North Jeolla Province, Korea, is 409 square kilometers. It covers two-thirds of the area of Seoul, the capital of Korea.
Since 2008, the Saemangeum Industrial Complex Project Group of the Korea Rural Community Corporation has been promoting the Saemangeum National Industrial Complex construction project at 1,850ha in the Saemangeum district, and the total project cost is about 2.6 trillion won.
It is being built as a low-carbon green growth eco-friendly complex. The attracting industries are parts manufacturing industry, high-tech convergence industry, and renewable energy industry.
Saemangeum National Industrial Complex has recently been called an advance base for electric vehicle production. Jeonbuk also aims to create 3,500 jobs and produce 300,000 electric vehicles a year by 2025, and 16 small and medium-sized electric vehicle-related companies, including Edison Motors and Daechang Motors, will invest KRW 19.3 billion and a total of KRW 453.4 billion with support from the Korea Development Bank and Small and Medium Business Corporation.
The Korea Rural Community Corporation plans to expand private investment by developing a green hydrogen ecosystem that can produce solar, wind, and green hydrogen, and officially plans to provide solar power generation rights to companies and cover the renewable energy produced in Saemangeum.
For such reasons, the government is currently in the spotlight as a center for the Green New Deal project and eco-friendly politics, which are key tasks of the government, and attracting investment companies is being activated.
Saemangeum National Industrial Complex Saemangeum Tri-Port
(New Port of Saemangeum, Highway, Saemangeum International Airport)
Currently, Saemangeum National Industrial Complex is preparing for Saemangeum Tri-port (Airport, Port, and Railway).

In 2024, a highway connecting Saemangeum and Jeonju will be opened, and the airport is establishing a basic plan with the aim of opening in 2028, and the incoming railroad to Saemangeum is currently conducting an investigation. Saemangeum New Port is planned to be completed by 2025. If the wide-area transportation network is established in this way, internal development will be activated and the amount of money can be reduced in production, storage, and transportation activities. It is expected that this will boost private investment
It also provides policies that will appeal to companies that move in.
Saemangeum Industrial Land can be rented for up to 100 years, corporate tax and income tax are reduced by 100% for up to 5 years and 50% for the next 2 years, supporting one-stop operation of various licensing teams, and supporting utilities such as electricity, communication, and gas.
Due to such policies and conditions, the number of companies investing in Saemangeum National Industrial Complex is increasing, and the attraction of investment is accelerating.
A total of 1,410ha of industrial complexes are planned to be supplied, and as investment conditions have improved due to the supply of long-term rental land, more than 32 companies have signed occupancy contracts and are preparing to move in over the past three years
Cho Hyun-chan, head of the Saemangeum Industrial Complex Project, is preparing to take a leap forward to become an economic hub in Northeast Asia by making it an industrial complex that companies want to invest in in line with the administrative cooperation of related ministries of the Saemangeum National Industrial Complex.

EJ SONG

Asia Journal 

(Source from Reuters/Alamy)Dollar Preference Even in the U.S. Market Crisis, Dollar Concentration After the COVID-19 Pandemic
The damage comes at the expense of emerging economies, which are vulnerable to the economy.It’s not even a financial crisis, but the exchange rate is strong by one dollar. With the dollar continuing to strengthen against major currencies, the U.S. stock market has also fallen sharply and volatility remains. As the dollar is strong for all currencies, it is difficult to dismiss it as a problem only for each country’s currencies.

Triffin’s Dilema, named after Robert Triffin, an American economist, must still be in effect. The dollar has long served as a key currency since the gold standard was abolished. The reserve currency must be reliable and supply sufficient, but in reality, these two goals conflict.
For example, only when the U.S. makes a trade deficit can the dollar, which is the key currency, be supplied sufficiently. However, if the U.S. continues to run a trade deficit, skepticism about the U.S. economy grows, and trust in the dollar is broken and the status of the reserve currency is shaken.
Conversely, if the U.S. makes a trade surplus, other countries will have to bear the burden of the trade deficit, and the global economy will not be funded due to a lack of dollars, which could lead to a recession. Deepening this dilemma could be a factor in the crisis. Macroeconomics has a thing called ‘Impossible Trinity’. In theory, no country can achieve these three goals at the same time: free capital movement, fixed exchange rate system (exchange rate stability), independent financial policy. Rather, there is a conflict between them.
For example, let’s raise interest rates independently when free capital movement is guaranteed. Then, as capital flows in due to interest rate hikes, the exchange rate appreciates and exchange rate stability is damaged. If you want to maintain stability in your own exchange rate, you should use a Capital Control policy, which undermines the goal of free capital movement pursued by the International Monetary Fund or the Organization for Economic Cooperation and Development. Usually, capital control is any form of measure that a country’s government can use to regulate the inflow and outflow of capital through capital accounts. In contrast, the IMF defines all measures designed to affect capital inflow and outflow as capital flow management measures (CFMs).

(Source from Reuters/Alamy)Citizens hold a rally in the Philippines on July 4 to demand lower rice prices amid inflation in the global economy.Concerns over capital outflows from emerging economies emerged after the 2008 financial crisis due to the high-intensity U.S. interest rate hike, and the IMF also recognized capital inflow and outflow management measures, which were taboo before. Many emerging economies hate short-term speculative capital coming in like high tide and undermining the stability of financial markets. As a result, in the case of Brazil, taxes (aka Tobin tax, now abolished) were imposed on short-term capital inflows. It was intended to sacrifice one of the goals of the “impossible trinity.” Since then, as the U.S. raised interest rates due to the strong U.S. economy, the problem of capital outflow has arisen in emerging countries. When the COVID-19 pandemic broke out. The huge liquidity supply of central banks around the world, including the United States, has created a super-large milkshake.

Is history reproduced? In order to absorb the increased liquidity due to COVID-19, the U.S. took baby steps, big steps, and giant steps in 2022. The IMF feared that emerging economies could face capital outflows and declines because the U.S. rate hike eventually linked to the flow of exchange rates. Why does the dollar go up when it’s constantly printing dollars?

U.S. investor Brent Johnson expects the dollar to rise if the Fed raises interest rates, and a strong dollar will suck up investment funds from around the world to the U.S. In the meantime, the U.S. Fed has excessively supplied milk shakes called liquidity.

Now, in front of the monster of inflation, the U.S. Federal Reserve is trying to absorb the milkshake by inserting a large straw. When the Fed cuts interest rates and quantitative easing (QE), fresh milk is injected into milkshake bottles. As a result, global liquidity flows into emerging markets, high-risk bonds and stock markets.

On June 27, a gas station in Colombo, Sri Lanka’s capital, blocked the vending machine because it had no gasoline in stock. Since then, citizens waiting for gasoline supply have lined up and armed soldiers are guarding it.

The U.S. austerity policy is creating a dark cloud over the global economic trend.
Since the COVID-19 pandemic, price bubbles have appeared in all directions, including real estate, stocks, bonds, and bitcoin, due to overflowing liquidity. Now, the Fed is inhaling milk shakes by picking up unprecedented large straws and raising interest rates to prevent inflation and enhance financial stability. The dollar funds return to the mainland of the U.S., high-yield bonds in emerging markets, where risks have increased due to interest rate hikes, and funds are withdrawn from the stock market and headed to the stable U.S. government bond market. The dollar’s strength further fuels it further. So I’m worried. In the global financial market, the direction of fund flow may change and negative signs may appear.

Let’s say the dollar continues to strengthen. First of all, given the total amount of dollar-based debt around the world, the burden required to pay only interest on it increases that much. Furthermore, the dollar still accounts for an overwhelming proportion of global trade. Even if the euro, yen, and yuan are all combined, it is less than a third of the dollar.

In the meantime, the demand for U.S. government bonds is still high. If the interest rate on U.S. government bonds continues to rise, its attractiveness can increase further. It is horrifying to hear that the U.S. absorbs the world’s capital by inserting straws. The U.S. dollar is the world’s key currency. The monetary policy of the U.S. central bank is bound to affect the economy not only in the U.S. but also around the world. If the world thinks that the U.S. dollar is the least dirty shirt than the quasi-stimulus currency country’s currency that implemented easing monetary policy, it will inevitably be forced to wear it. The dollar’s status is weakening, but it still accounts for more than 60 percent of the world’s foreign reserves. The dollar’s share of global trade is gradually decreasing, but it still accounts for about 40 to 45 percent. The bond market also accounts for 60 percent of the total. One way or another, the world is shaken by the injection and inhalation of dollar milkshakes. When the U.S. stock market was good, the dollar milkshake theory could exert its power.

Even though the U.S. market is shaking now, the dollar milkshake theory is still valid because of the preference for safe assets that only dollars can be trusted. It was the United States that caught fire during the global financial crisis. Since then, the sacrifice has been attributed to emerging economies that have been slow to restructure. How’s it going after the pandemic? Will Asia and developing countries be able to respond efficiently to these safe assets?

JULIE KIM

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