SEOUL, April 22 (AJP) - A procurement dispute has erupted over South Korea’s first privately-led geostationary satellite development project, underscoring growing competition in the country’s burgeoning space sector.
Industry sources said Tuesday that the committee overseeing the Chollian Satellite 5 project selected LIG Nex1 as the preferred negotiation partner for developing the satellite bus. The decision prompted a formal objection from rival bidder Korea Aerospace Industries (KAI) on April 10.
The disputed program — officially titled the Geostationary Meteorological and Space Weather Satellite System and Bus Development — is a national R&D initiative backed by 323.8 billion won ($236 million) and scheduled to run through 2031.
The selection process prioritized technical capability and project readiness, explicitly excluding cost considerations. Final decisions were reached on April 1 following documentation review and presentations.
KAI has challenged the decision, claiming LIG Nex1 lacks core experience in leading satellite systems or bus development and does not possess facilities for satellite assembly and testing.
The company also raised concerns about the integrity of the evaluation process, pointing to potential conflicts of interest involving former Korea Aerospace Research Institute (KARI) employees serving on the review panel — some of whom, KAI alleges, may financially benefit from the project through technology transfer fees.
The Korea Meteorological Industry and Technology Institute, which oversees the project, confirmed it is currently reviewing the objection. “We need to respond within 30 days of receiving the objection, and we are in the process of review and preparation,” a spokesperson said. “It is difficult to comment further at this time.”
Analysts see the dispute as indicative of intensifying competition in South Korea’s space sector.
“When selection is determined solely through qualitative evaluation, the potential for disputes grows — especially as the number of large-scale projects increases,” said one industry insider. “As the space industry matures, it’s essential to establish a fair and transparent evaluation framework.”
The Chollian Satellite 5 project represents a milestone in South Korea’s space development strategy, with private firms taking on roles traditionally led by government research institutions.
reporter
Candice Kim
candicekim1121@ajupress.com
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