As the new space economy transforms cislunar space into a commercial battlefield for technological supremacy, South Korea’s industrial cluster initiative provides critical insights into how late entrants can leverage domestic coordination strengths to compete in domains that eliminate traditional catch-up strategies. Korea’s nascent three-hub strategy—which anchors satellite manufacturing in Sacheon, research and talent development in Daejeon, and launch operations in Goheung—leverages the country’s time-tested, government-industry coordination model while addressing the unique constraints of the new space economy, where companies must achieve global competitiveness from inception rather than building capabilities through sequential domestic market development. Early implementation shows sharp tensions between Korea’s new distributed cluster model and the tight coordination that made its traditional industrial hubs successful. Geographic separation hinders day-to-day collaboration, while governance battles expose deeper questions about whether legacy industrial policy can keep pace with fast-moving, globally networked industries.
South Korea’s Industrial Policy for the New Space Economy (Darcie Draudt-Véjares and Kaylin Kim – Carnegie Endowment for International Peace)
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