[Exclusive] Ultra-Precise Surveillance Satellite Grounded for 4 Years... "10 Billion Won Delay Penalty Imposed" [Reading Science]

Arirang 6 Satellite, Payload Delivery Delayed + Unable to Launch for 4 Years Due to War
50cm Resolution Ultra-Precise Observation Possible, Key Security Asset
LIG Nex1's Outsourced SAR Parts Delayed Over 3 Years
KARI "Review by Year-End for Penalty... Not Eligible for Exemption"

Virtual image of Multipurpose Practical Satellite 6 (Arirang 6).

[Asia Economy Reporter Kim Bong-su] South Korea's high-performance satellite developed for security and national territory observation has been grounded for four years due to delivery delays compounded by the war. The government is reportedly set to impose a delay penalty of over 10 billion KRW on LIG Nex1, which has delayed delivery for more than three years, as originally planned within this year.

According to the Korea Aerospace Research Institute (KARI) on the 4th, KARI plans to determine and impose the amount of delay penalty on LIG Nex1 by the end of this year, as per the original contract, for failing to deliver the payload of the Multipurpose Practical Satellite 6 (Arirang 6) for over three years. Since the contract for the Arirang 6 payload is worth about 100 billion KRW, the delay penalty is expected to reach up to 10 billion KRW.

This plan by KARI somewhat diverges from the policy announced by the government at the end of last year. At that time, considering the characteristics of advanced and defense industries where technology development is difficult, the government decided to ease, reduce, or defer delay penalties as a rationale to encourage corporate research and development. However, since the contract was signed quite a long time ago, retroactive application is not possible. Moreover, LIG Nex1 bears significant responsibility for the current 'stalemate' situation caused by delaying the launch three times over more than three years.

KARI stated, "We plan to review the amount and imposition of the delay penalty by the end of this year and are not considering any deferment," adding, "The delay penalty is specified in the contract, and the Arirang 6 payload contract with LIG Nex1 is judged not to be subject to the reduction or deferment announced last year."

LIG Nex1 had agreed to deliver the Arirang 6 payload, including the Synthetic Aperture Radar (SAR), by the end of 2018. However, the transmission and reception antenna of the core SAR component outsourced to a foreign company (Airbus DS) was not developed on time, resulting in delivery only in the second half of last year, three years overdue. Consequently, the Arirang 6 launch was postponed three times?from 2019 to early last year, late last year, and the second half of this year. Furthermore, the launch plan scheduled for August was canceled due to the outbreak of the Russia-Ukraine war at the end of February. The plan was to use a Russian launch vehicle, but the Russian Federal Space Agency refused to launch satellites from countries participating in international sanctions. Although Arirang 6 is currently completed, the launch continues to be delayed as a replacement launch vehicle has not been found.

Had LIG Nex1 met the delivery deadline, Arirang 6 could have been launched earlier and started its mission. Arirang 6 features ultra-high resolution of 0.5 meters, enabling all-weather, day-and-night surveillance. It was expected to bring innovation in acquiring information for national security and land management. Its image quality is four times better than Arirang 5 and ranks among the world's highest resolution levels, excluding military satellites. It was planned to replace Arirang 5, which was launched in 2013 and whose first mission period expired in 2018. As the Arirang 6 launch continues to be delayed, the government is extending Arirang 5's mission period every two years while monitoring its condition. If Arirang 5, approaching 10 years since launch, suddenly malfunctions due to aging, it could disrupt the Korean Peninsula observation and surveillance system using satellite networks.

LIG Nex1 respects the ordering party's judgment according to the contract. The company stated, "We have no comments regarding the contract matters related to the project progress," and added, "Please direct inquiries to KARI, the project lead."

However, some voices are calling for innovation in the government procurement system related to space, which was previously led by the public sector, in the era of 'New Space' aimed at revitalizing the private space industry. Recently, even the United States, the leading space power, issued a report stating that to fend off China's pursuit, the Space Force and Air Force must reform outdated procurement systems and strengthen public-private cooperation.