The satellite communications and space equipment industry is a strategic industry that combines national security, data, and technological sovereignty . Technology, procurement, and data agreements through FTAs are key to the growth of private satellites and space startups.
The global satellite communications market is projected to grow by an average of 9-10% annually between 2025 and 2026 , driven
in particular by the expansion of LEO (low-orbit satellites) and space internet (Starlink, OneWeb)
. Korea is leveraging the Comprehensive Economic Partnership Agreement (CEPA), the Korea-EU, and the International Space Station (IPEF) to increase exports of satellite components, ground station equipment, and data processing technology
. Key risks include ITAR (US export controls) , CBAM-type carbon and energy regulations , and the strengthening of space treaties and security regulations .
Risk factors | 2025-2026 Outlook | Influence (1~5) | Implications |
|---|---|---|---|
| ITAR | Continued regulation of satellite components and sensors | 5 | Joint ventures and technology transfer are essential for exports to the U.S. |
| FTA technical provisions | Lack of reflection of the space industry | 4 | CEPA and IPEF technology chapters need to be expanded. |
| CBAM | Carbon regulations for launch vehicle manufacturing and components | 4 | The need to introduce LCA and carbon accounting |
| ESA·EU | Strengthening procurement and security regulations | 3 | Certification/ISO27001 acquisition |
| Supply chain restructuring | Rising satellite component procurement costs | 3 | RCEP-based diversification is needed. |
FTAs provide tangible benefits for cooperation in parts, materials, and data
in the satellite communications and space equipment industries. The Korea-EU-CEPA-RCEP agreement supports tariff reductions for satellite and launch vehicle components and the exchange of data processing and security technologies . Furthermore, Korea is actively entering the
FTA-based international procurement market (EU ESA, UAE CEPA space industry provisions) .
field | FTA applicability | Major challenges | Management Points |
|---|---|---|---|
| Satellite Parts (HS8802) | CEPA·RCEP | ITAR·Technology Transfer Regulations | Local JVs and joint production are needed. |
| Ground Station/Antenna (HS8525) | Korea-EU CEPA | Complicated procurement regulations | Utilizing the procurement chapter within CEPA |
| Optics/Sensors (HS9014) | Korea-EU-RCEP | Certification and environmental regulations | ISO/CBAM compliance required |
| Data/SW | IPEF·DEPA | Data transfer restrictions | Linking GDPR and DEPA provisions |
While most space industry products have low tariffs, security, technology, and data regulations remain key non-tariff barriers.
FTAs improve access to procurement markets, technological cooperation, and data standards .
market | Main items | MFN (basic rate) | When FTA is applied | non-tariff barriers | Comments |
|---|---|---|---|---|---|
| EU | Satellite and optical sensors | 0~3% | 0% | CBAM·ESA certification | CE, ISO, and ESA registration required |
| USA | missiles and communication equipment | 0~2% | low rate | ITAR regulations | Local JV required |
| UAE | Satellite data and ground stations | 5~8% | Step-by-step removal through CEPA | Security and Communications Act | Korea-UAE CEPA technical cooperation in progress |
| japan | Satellite components | 2~4% | RCEP application | JIS·Security Regulations | Need to expand technology agreements |
| ASEAN | Communication components | 3~6% | RCEP cumulative | Standard/certification deviation | Advantages of utilizing production bases |
The space industry, while characterized by many high-carbon processes, is transitioning into an industry subject to relaxed carbon regulations through launch vehicle recycling and green satellite development . The EU and UAE are promoting RE100 procurement for the space industry and launch vehicle fuel efficiency certification .
System/Issue | Core requirements | Influence (1~5) | react |
|---|---|---|---|
| CBAM | Requirement for LCA of satellite components and fuel | 4 | Building low-carbon processes and LCA |
| ESG procurement | Reflecting ESG evaluations in procurement contracts | 4 | Sustainability Reporting Obligation |
| RE100 | Satellite manufacturing power regeneration requirements | 3 | PPA·ESS linkage |
| Space Waste Regulation | Mandatory recycling and collection systems | 3 | ESA cooperation is needed |
| Safety regulations | Missile and Communication Security Standards | 3 | Obtaining international ISO certification |
Korea: Expansion of space equipment cluster centered on Hanwha, LIG Nex1, and KAI (centered on Goheung and Naro Space Centers).
EU: Strengthening ESA and CBAM procurement regulations increases demand for high-efficiency, eco-friendly satellite technology.
UAE: CEPA-based satellite data and ground station technology exchange.
ASEAN: Growing into a small- and medium-sized ground station and data processing hub.
US: Limited cooperation between the civilian and defense industries, with a focus on joint ventures and OEMs.
Combining AI sentiment (α), global satellite investment index (β), and aviation and space industry sentiment (λ). A gradual upward trend is expected
in the fourth quarter of 2025, driven by the effects of CEPA and RCEP and expanded cooperation between the ESA and the UAE .
variable | Δ(%) or exponent | analysis |
|---|---|---|
| ΔExport_now | +3.2 | Increase in exports of satellite components and sensors |
| ΔImport_now | +1.7 | Expanding imports of high-precision optical equipment |
| ΔPrice_now | +0.5 | Increase in fuel and parts prices |
| ΔSignal_now | +0.041 | Expanding Positive News and Technology Cooperation |
| ΔFTAEffect | +0.38 | Reflecting the effects of CEPA and RCEP |
| Forecast_3M | +0.63 | 3 months of gradual upward trend |
Formula (summary): Forecast_3M = 0.5·ΔSignal + 0.3·ΔFTAEffect + 0.2·ΔPrice
field | Suggestion | Executor | Expected effect |
|---|---|---|---|
| FTA technical provisions | Expansion of provisions to include the space industry | Trade Headquarters and Ministry of Science and Technology | Improving technology agreement efficiency |
| CBAM response | Establishment of a satellite component LCA database | Ministry of Trade, Industry and Energy and Aerospace Administration | Stabilizing EU exports |
| procurement market | Expanding participation in procurement based on ESA and CEPA | Trade Headquarters·KOTRA | Expand technology exports |
| ESG space industry | Introduction of recycling and RE100 processes | Ministry of Trade, Industry and Energy | Global Procurement Response |
| international cooperation | Establishment of Korea-UAE and Korea-EU Technology Exchange Centers | Ministry of Science and Technology | Supply chain diversification and technological independence |
The satellite communications and space equipment industries need to strengthen their global supply chains and ESG competitiveness through FTA-based technology, data, and procurement cooperation .
Forecast_3M: +0.63 — Reflecting the synergy of procurement and technology cooperation based on CEPA and RCEP.
Recommended strategies: ① Utilize CEPA and RCEP ② ESA certification and CBAM response
③ Develop low-carbon satellite processes ④ Promote the establishment of a space industry FTA technology chapter.
