The Korea Aerospace Administration announced that it will invest 7 billion won in the New Space fund, which is expected to serve as a catalyst for the space economy.
On the 24th, the Korea Aerospace Administration noted that it will officially recruit an operator to manage the New Space investment support project. The New Space investment support project is a government-backed fund introduced for the first time in 2023 for the space sector.
It is a space-specific fund that invests in private small and venture businesses (startups) by contributing to the space sector fund from the Science and Technology Promotion Fund. Over the past two years, two funds with a total scale of 20.5 billion won have been established.
The New Space fund sets small and venture enterprises engaged in the space industry and companies located in space clusters as its primary investment targets. Starting this year, Korean small businesses that have expanded overseas have also been added as primary investment targets.
Considering the characteristics of the space sector, which require long-term technology development, the investment period is set for five years, followed by a recovery period of five years. Various benefits are provided, including incentives for creating two or more jobs for every cumulative investment of 100 million won.
The Korea Aerospace Administration plans to form a fund totaling 100 billion won through continuous investment over five years until 2027.