Securities Industry Foresees a Rosy Future for the Space Industry

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Korea's space launch vehicle Nuriho ended with an incomplete success, causing related stocks to fall, but the financial investment industry is forecasting a rosy future for the space industry.

According to a report by KB Securities researcher Lee Eun-taek on the 23rd, after the global financial crisis, neoliberalism lost its power and entrepreneurship was revived, opening the era of technology.

Since humanity succeeded in landing on the moon in the 1960s, the space industry has faced obstacles not due to technological issues but practical reasons such as enormous investment costs. For example, the main aircraft of airlines, the 'Boeing 737,' was developed in 1965, meaning it has been relying on jet engines for air travel for 50 years.

This is because, with the start of the neoliberal (shareholder capitalism) era in the 1970s, the purpose of companies was to return profits to shareholders, emphasizing efficiency. It was accepted that rather than investing shareholders' money in uncertain technology, it was more efficient to lay off high-wage domestic workers and build factories in China for low-cost mass production.

The researcher said, "After the financial crisis, neoliberalism lost power and entrepreneurship returned. Dividend stocks retreated, technology stocks surged, and the era of technology, which had been stagnant for 50 years, began. Although the results of Nuriho were disappointing, the future seen from a top-down perspective is bright."

Jung Eui-hoon, a researcher at Kiwoom Securities, also said, "Although Nuriho failed to place the satellite mock-up into orbit, it is hard to conclude that this launch was a failure. The rocket stage separation, two engine ignitions, fairing and satellite separation, which were considered challenges in this launch, were all successful, and it reached the target orbit of 700km, so the purpose of verifying the launch vehicle technology can be considered accomplished."