Aerospace Administration, "Mediation Between Hanwha Aero and KAIST Aerospace Institute Expected in August"

The Korea Aerospace Administration (KAA) expects that the conflict between the Korea Aerospace Research Institute (KARI) and Hanwha Aerospace over the next-generation launch vehicle will be resolved after the Public Procurement Service's mediation results are announced next month.

[Image source=Yonhap News]

No Kyung-won, Deputy Director of the KAA, said in a phone interview with Asia Economy on the 31st, "We are well aware of concerns regarding the conflict between the two parties, but we expect it to be resolved after the mediation results on the contract for selecting the next-generation launch vehicle system integrator, raised by Hanwha, come out in August."

The next-generation launch vehicle project, which involves about 1 trillion won of national budget, is being carried out in a 'New Space' format involving Hanwha Aerospace rather than being centered on KARI, unlike the existing Nuriho project. Contrary to expectations that multiple companies would participate in the bid for the next-generation launch vehicle system integrator, only Hanwha Aerospace participated.

Although Hanwha submitted a sole bid, it has requested joint ownership of intellectual property rights related to the next-generation launch vehicle based on a clause in the project proposal stating that "ownership distribution can be determined through separate negotiations according to the contribution of the system integrator," through its law firm. Deputy Director No explained that once the results regarding this come out next month, they plan to coordinate the positions of both parties to ensure the next-generation launch vehicle project proceeds without issues.

Regarding the controversy over Hanwha's absence at the next-generation launch vehicle system requirements review meeting (SRR) held on the 25th at KARI in Daejeon, Deputy Director No explained that Hanwha was not a participant in that meeting.

In the scientific community, this conflict is also seen as a natural outcome of the shift in launch vehicle development from being centered on KARI to Hanwha Aerospace. A senior government official expressed the opinion that "research institutes must accept the changes of the era."

Meanwhile, on the same day, KARI announced that it will form a joint development committee for the next-generation launch vehicle involving Hanwha Aerospace to discuss joint design plans. The joint development committee will have an equal number of members from both sides, but the meeting schedule has not yet been set. Hanwha also acknowledged that the joint development committee will be operated.

However, KARI explained that the joint development committee was a predetermined matter from the contract process for selecting the next-generation launch vehicle system integrator. They maintain that it is a fixed arrangement regardless of the conflict between the two parties.