Korea Aerospace Industries (KAI), which was excluded from the development project of the first domestically led geostationary weather satellite, 'Cheollian Satellite No. 5', has filed a lawsuit against the head of the Korea Meteorological Administration and the head of the Korea Meteorological Institute (KMI), requesting the cancellation of the designation of LIG Nex1 as the preferred negotiation partner for the Cheollian Satellite No. 5 project.
KAI has raised objections, claiming that there were issues with the selection process that designated LIG Nex1 as the preferred negotiation partner. The disputes regarding the qualifications of the evaluation committee and the evaluation methods are expected to subside only after the court's decision.
According to the defense industry on the 28th, KAI filed a lawsuit with the Seoul Administrative Court on the 2nd of last month. The court that will hear this case is the Administrative Division 7, presided over by Judge Ko Cheol-min, with the first hearing scheduled for the 11th of next month.
Cheollian Satellite No. 5 is Korea's third weather satellite, aimed for launch in 2031. It will inherit the mission of Cheollian Satellite No. 2A, which currently serves as a weather satellite. The project will proceed in three parts: development of the system and main body, development of weather payload, and development of space weather payload, with a total investment of 600.8 billion won over seven years starting this year. Unlike previously launched satellites, this will be the first time a private corporation leads the development.
The area of the project KAI disputes is the development of the system and main body. KAI claims that the evaluation method was flawed. They argue that it was problematic for the evaluation organization to recognize accomplishments unrelated to the characteristics of system and main body development as eligibility.
The eligibility for the weather payload or space weather payload project is limited to accomplishments in relevant technology fields. In contrast, for the system and main body development project, accomplishments in the delivery and development of sub-units or payloads were also recognized as eligibility. KAI argues that the decision to relax eligibility for this project to include all fields related to satellites is inequitable.
KAI also claims that evaluations were not conducted properly. They find it difficult to accept that LIG Nex1 received high scores despite significant differences in satellite development personnel, facilities, and equipment between KAI and LIG Nex1. KAI has secured personnel and facilities, as well as its own testing equipment, through the development of next-generation medium-sized satellites, military reconnaissance satellites, and multipurpose practical satellites over the past 32 years. LIG Nex1 began hiring for the system and main body area after being selected as a contractor.
KAI has raised concerns about conflicts of interest. Some members of the evaluation committee for this project are retired employees of the Korea Aerospace Research Institute (KARI) who participated in the development of Cheollian Satellite No. 2A in the past. This project is structured to receive technology transfer from KARI's Cheollian Satellite No. 2A if necessary. According to KARI's guidelines, royalties for technology compensation are paid even in cases of retirement or death.
However, it has been argued that including retired KARI employees as evaluators is inappropriate, as they could potentially become recipients of technology compensation when the project is fully underway. Although LIG Nex1 presented a royalty for technology, KAI did not present one separately, as they have already secured technology through prior projects.
However, since no contractor has changed due to lawsuits in the past, there is speculation that the outcome will not change with this lawsuit. A KAI official noted, 'We filed the lawsuit to point out the problem of the unclear contractor selection process.'
LIG Nex1 stated, 'We conducted the bidding process in compliance with the established regulations.' When KAI raised objections last April, LIG Nex1 countered that it has a track record of participating in projects such as the high-performance imaging radar payload for multipurpose practical satellite No. 6 and ultra-small satellite systems. LIG Nex1 has recently completed construction of its satellite system testing facility and is preparing for an opening ceremony.
The Korea Meteorological Administration stated, 'The Cheollian Satellite No. 5 project was conducted in accordance with relevant laws and regulations, such as the National Research and Development Innovation Act, during the bidding and evaluation process,' adding, 'We will respond to this lawsuit through proper legal procedures.'