1. INTRODUCTION

As Korea has become a global space power with the success of the Nuri launch, requests for joint cooperation on space assets, space exploration, space situational awareness, and space transportation are increasing.

On October 24, 2023, Korea Aerospace Industries (KAI) signed a Memorandum of Understanding (MOU) with the Saudi Arabian Space Agency (SSA) to establish mutual cooperation in the space sector. KAI will cooperate with SSA on technology development and operation, joint commercialization, and investment in new startups to explore the space market [1].

The Ministry of Science and ICT and the UAE Space Agency signed an agreement on January 15, 2023, in Abu Dhabi, the capital of the United Arab Emirates (UAE), to amend the Memorandum of Understanding (MOU) on Cooperation in the Exploration and Use of Outer Space signed by the two organizations on January 31, 2017. The agreement expands the two countries’ cooperation in space development to include peaceful space exploration, satellite communication and navigation, Earth observation, space science and technology testing and verification, space data exchange, ground station utilization, launch and service cooperation, space situational awareness and space traffic control [2].

On November 21, 2023, the Ministry of Science and ICT and the UK Department for Science, Innovation and Technology (DSIT) signed the Korea-UK Digital Partnership, Science, Innovation and Technology Implementation Agreement, including the Memorandum of Understanding on Space Cooperation. Through this MOU, the two countries will systematize cooperation procedures in areas of common interest, including space exploration, industry, infrastructure, satellites, navigation and visibility, telecommunications, Earth observation, and space policy and norms [3].

Joint development of space assets will provide opportunities to acquire advanced space technologies and expand our industrial ecosystem. It is also an opportunity to expand the industry, technologies, and standards associated with space asset development by transferring our space asset-related technologies and products to the demanding countries.

However, the joint development of space assets can be challenging because it is capital intensive, high-tech, and involves both economic and military and security interests. This is because the different economic interests and military and security situations faced by countries seeking to jointly develop space assets may lead to various risks in the implementation of joint development. Differences in technical capabilities and funding capacities among co-developing countries may limit the promotion and sustainability of joint development. In addition, the joint development of space assets may be affected by changes in the domestic and international political situation, financial environment, legal system and governance structure, and technical capabilities.

As a result, legal options for hedging these various risks must be considered to ensure the successful implementation of joint space asset development between countries. The following section examines contractual considerations for hedging the risks of joint space asset development.

2. THE NEED AND CASES FOR JOINT DEVELOPMENT OF SPACE ASSETS

2.1. Meaning and necessity of joint development of space assets

Since the joint development of satellite assets cannot be achieved in a short period of time, co-developing countries are exposed to various risks, including risks that were unknown when the co-developing countries agreed to joint development, risks that cannot be avoided despite being known, and risks that may materialize during the joint development period. Therefore, the most important legal consideration is how and under what circumstances the joint developers agree to hedge these risks. Meanwhile, space assets go through a life cycle of design and construction, launch, operation, and disposal. To ensure the success of the joint development of space assets, the agreements and legal mechanisms to identify and address the various risks associated with this life cycle should be considered. Hedging the various risks associated with the joint development of space assets, identifying the risks in all stages of the life cycle of space assets, and deriving measures to respond to them are essential for the success of joint development of space assets. Without these legal considerations, the benefits of joint development of space assets would be lost and the costs would be incurred, resulting in no economic, industrial, or security benefits.

Joint development of space assets should not only increase technological innovation and productivity in the space industry, but also enhance technological competitiveness in space security. To this end, it is necessary to establish binding agreements and legally enforceable measures to acquire and transfer space security technologies throughout the entire life cycle of space assets through joint development of space assets. On the other hand, the economic and industrial benefits of joint development cannot be guaranteed unless the rights to the technologies and the know-how developed through joint development of space assets are secured. Therefore, contractual arrangements should be considered to ensure the rights to the technologies acquired or developed through joint development.

On the other hand, the increasing factionalization and tension between the United States, the West, and authoritarian states such as China and Russia due to the U.S.-China rivalry is promoting the joint development of space assets between factions for security reasons and technological competitiveness in space development. This is because joint development of space assets based on intra-faction alliances and cooperation can reduce costs, increase the scope and speed of development, and secure technological superiority over the other side. In addition, the emergence of competitive private space development companies is promoting the joint development of space assets not only among countries, but also between countries and private companies and related space companies. Co-development of space assets is driving innovation in the development and operation of space assets by reducing costs for countries and private companies and fostering a healthy industry ecosystem.

While the development of self-powered satellites and their smooth supply is the most desirable response to the surging demand for satellites in the space market due to the expanding needs of various space missions, limited budgets and technological limitations in certain sectors cannot solve all the shortages. Therefore, at this point, in addition to efforts to supply self-powered satellites, it is preferable to address the imbalance in satellite supply and the demand through international cooperation with other space-advanced countries, joint development of satellites, and cross-utilization of foreign and domestic satellites. This is a global trend that is favored by all countries, not only by Korea, to solve financial problems and solve technical problems.

Joint development and utilization of satellites not only solves the satellite supply and demand imbalance, but also maximizes productivity, which can overcome financial limitations and technology transfer problems. In addition, with more opportunities, extensive scientific results around the world is expected, which will meet the expectations and interests of the public, and in the long run, it will have a substantial effect on the accumulation of advanced space technology and space manpower. In other words, the development and cross-utilization of satellites through scientific and technological cooperation is of paramount importance for maximizing the production line, such as facilitating the accumulation of space technology and eliminating the shortage of satellite supply for the scientific needs of space development with a limited budget.

2.2. Cases

2.2.1. NASA and European Space Agency (ESA) Mars Rover Joint Development Agreement

NASA and the European Space Agency have signed an agreement to provide hundreds of millions of dollars to support the European Mars rover. Officials from NASA and ESA signed the agreement on May 6, 2024, at ESA’s Paris headquarters, formalizing interagency cooperation on the ExoMars Rosalind Franklin rover, scheduled to launch in 2028 [4].

The agreement confirms the tasks that NASA will perform for its Mars mission plan. The plan includes throttable braking engines for the new descent stage being developed by ESA. It also includes a radioisotope heating unit (RHU), which uses heat from the fission of plutonium-238 to provide heat to the spacecraft. The RHU will also be launched from the United States aboard a spacecraft to be procured by NASA. The funding for this initiative replaces elements of the mission originally provided by Roscosmos, which developed the landing platform for the Rosalind Franklin mission and planned to launch it in September 2022 aboard its Proton spacecraft.

ESA had previously canceled a partnership related to this plan in February 2022, weeks after Russia’s invasion of Ukraine. Meanwhile, ESA signed a €522 million ($566 million) contract with Thales Alenia Space on April 9, 2024, to develop the probe’s landing system in-house. The Thales-led team will develop a new landing platform, while NASA will provide engines and RHUs that are not readily available in Europe. ESA claims that the Rosalind Franklin rover will land on Mars in 2030.

The announcement did not disclose the funding provided by NASA for this plan. NASA’s fiscal year 2025 budget released in March 2024, requested $49.2 million for the Rosalind Franklin project, and the agency is expected to spend $339 million through fiscal year 2029 for the rover, which is scheduled to launch in late 2028.

The Rosalind Franklin rover co-development agreement comes at a time when NASA works to improve the Mars Sample Return program, jointly pursuing with the ESA to address cost increases and schedule delays, and will provide another opportunity to participate in Mars exploration. Aside from the small Mars orbiter ESCAPADE, scheduled to launch in the fall of 2024, NASA has no other robotic Mars missions planned.

2.2.2. NASA and the European Space Agency (ESA) sign a Memorandum of Understanding on Space Transportation

On September 11, 2009, in Washington, DC, ESA Director General Jean-Jacques Dordain and NASA Administrator Charles Bolden signed a Memorandum of Understanding on cooperation between the two organizations in the field of space transportation [5]. “The Memorandum of Understanding we have just signed marks a new milestone in the already very strong and long-standing cooperation between ESA and NASA,” said Jean-Jacques Dordain at the signing ceremony. “The exchange of technical information in the field of space transportation through this document will benefit both agencies and facilitate our work on future launch systems, human spaceflight and exploration missions.”

The memorandum of understanding formalizes the conditions for information exchange between the two agencies, ensuring balanced cooperation and appropriate legal protection of common interests in the field of space transportation. It also envisions the possibility of interagency participation in specific reviews or working groups, joint research, use of technical facilities, and personnel exchanges.

The memorandum of understanding covers a number of topics of known common interest in the field of space transportation. For launch vehicles, it includes specific topics related to re-ignitable cryogenic launch vehicles, certification methods, structures and materials, development approaches, and engineering methods. In addition, the agreement covers topics related to human approaches to crew and cargo transportation systems and launch vehicles within the framework of the Advanced Reentry Vehicle (ARV) and Constellation programs. ESA and NASA said they will use this new framework to maximize cooperation between the two agencies and develop specific action plans for each topic.

2.2.3. Attracting European space investment

On May 23, 2024, the Ministerial Conference of the European Council issued a joint resolution entitled “Strengthening Europe’s competitiveness through space”[6]. The resolution emphasized the potential of space services. It emphasized the potential of space services in helping various industries to gain technological edge, support climate protection, and to safeguard critical infrastructure such as energy systems.

Anna Christmann, Germany’s federal aerospace coordinator and chair of ESA’s ministerial council, called for an “attractive environment” to increase private investment in space-related startups and SMEs.

The European Space Agency (ESA) has already taken steps to adjust its space development model by making contracts with private companies instead of developing and owning its own launch vehicles and spacecraft. In their statement, the EU ministers endorsed this new approach, as well as activities such as the €1 billion CASSINI program to support companies, startups, and SMEs involved in the space industry.

While Eurospace, the European space industry association, welcomed the support, it also required European political leaders for more effort in addressing the challenges facing the sector, including fragmented supply and demand and declining industry profitability. “The current pace of global change demands more than a disconnect between supranational, intergovernmental and national industrial strategies,” EuroSpace said in a statement, calling for a European-level space industry strategy.

The meeting was the 11th official meeting since ESA and the EU signed a cooperation agreement, and the first in four years. ESA Director General Josef Aschbacher said that cooperation with the EU is key to competing with global powers, as NASA invests about three times more in space activities than ESA.

Timo Pesonen, the European Commission’s Director General for Defense, Industry and Space, mentioned that the EU’s long-term budget from 2028 onwards should reflect a “much larger” space program, noting that the last budget was agreed in a geopolitical context before Russia’s invasion of Ukraine. In particular, Europe’s reliance on non-EU supply chains for its space industry limits its autonomous access to space, he said.

Currently, Europe is experiencing a launch vehicle crisis, with the loss of access to Russia’s Soyuz launch vehicles following the invasion of Ukraine and delays in the launch of Ariane 6 and Vega-C rockets. The successful launch of the first Ariane 6, scheduled for July 2024, will likely end this crisis.

2.2.4. Joint development between private companies

In the NewSpace era, joint development of space assets is being carried out by companies specializing in space development. In May 2023, ARQUIMEA and Aerospacelab announced an agreement to jointly develop a satellite platform [7]. This will allow the integration of payloads weighing more than 40 kg (~90 pounds) and generating more than 1.5 kW peak power for low-orbit missions. In addition to the joint development of the low-orbit satellite, the two companies have agreed to mass produce this satellite model in Spain and Belgium.

3. CONTRACTUAL CONSIDERATIONS FOR JOINT DEVELOPMENT OF SPACE ASSETS

3.1. Formation of contractual relationship

A particular country or private company must make decisions to jointly develop a space asset through a transparent and an open internal decision-making process. Based on this internal decision, searches for other countries or private specialty companies that can pursue joint development will proceed.

If they find a suitable country or private specialty company, they usually conduct preliminary negotiations verbally and then sign a memorandum of understanding (MOU) or letter of intent (LOI) for joint development. In the MOU or LOI, they will state their intentions to jointly develop space assets, share relevant data and information, and agree to maintain the confidentiality of such data and information. The parties will then conduct due diligence to ensure that the other party has the appropriate technical and capital capabilities and experience to undertake the joint development, and that there are no disqualifying factors. If they mutually determine that it is suitable for them to co-develop, they will agree to co-develop and commence actual co-development.

3.2. Determination of the Funding Method

The first factor to consider when conducting a joint development of space assets in the NewSpace era is financing the joint development. In the NewSpace era, where private participation is fundamental, joint development of space assets should be approached from the perspective of investment. Therefore, it is necessary to consider (1) the amount of funds required for joint development, (2) the period between the time of investment and the time of profit, (3) the amount of profit and the method of profit distribution, and (4) the method of hedging possible or incurred risks [8]. Space asset co-development is a business that requires a large amount of initial financial capital, is not always profitable, and involves significant risk.

However, even if we look at space asset joint-development from the perspective of investment, the financing methods are not much different from other business fields: 1) equity financing, 2) debt financing, 3) project financing, and 4) government aid [9].

The most basic way to obtain funding for joint development is to write a space business plan. This is to demonstrate the need for funding and the expected financial results to the investors. The plan should clearly describe the nature of the proposed joint development, its operating environment, short- and long-term goals, and the means to achieve them. It should also include a description of measured financial performance, including revenue, cash flow, return on assets, return on investment, payback period, and present value.

For joint development of space assets in the NewSpace era, the financing method for joint development should be established first. Basically, it is necessary to consider that the joint development of space assets is carried out between two or more companies or organizations. Therefore, the basic method of establishing a joint venture company for joint development and direct investment of equity capital by these organizations or companies can be considered. If necessary, this joint venture could also plan project financing to raise the necessary funds. When establishing a joint venture and proceeding to project financing, it is necessary to consider technical risks, regulatory risks, management risks, and commercial risks.

Ultimately, the legal considerations underlying the joint development of a space asset will depend on how these risks are mitigated.

3.3. Country Risk

Legal considerations should be made to hedge against the risks associated with the authority and responsibilities of the government departments that may negotiate or approve the joint development of space assets. While it is common for a specific government ministry to authorize the joint development related to design and manufacturing, there may be instances where the authorization for designing and manufacturing may be held by a local government (or state government) or more than one government ministry.

Government risk may also arise due to reorganization of government ministries or amendments to certain laws, which may change the ministry responsible of designing and manufacturing (as well as launching), co-development authorization or increased requirements for co-development. In response, it is required to consider introducing stabilization clauses, renegotiation and modification clauses, governing law clauses, arbitration and waiver of sovereign immunity clauses, etc.

3.4. Export Control

Space technologies and hardware used in the joint development of space assets are considered dual-use technologies. Advanced hardware and sophisticated technologies are useful for peaceful purposes such as disaster management, Earth observation, communications, and space exploration. In warfare, however, they can be useful for delivering explosives from a remote location, reconnoitering enemy strongholds, and jamming communications lines. Advanced space technologies developed for peaceful and commercial uses can be traded and sold between countries, and they can also be analyzed and replicated for the benefit of countries without peaceful intentions or foreign creators who do not have to pay for research and development. Therefore, countries involved in joint development of space assets have both political and economic reasons to protect their space asset-related technologies and secure their competitive advantage. To prevent foreign militaries or industries from acquiring knowledge of advanced systems and technologies, countries participating in or involved in joint development of space assets control the export of their space technology, hardware, and intellectual property [10].

Export controls related to joint development of space assets are governed by multilateral treaties as well as national laws of the countries involved. Multilateral treaties include the Wassenaar Arrangement, which was signed by more than 40 countries in 1994, and the Missile Technology Control Regime (MTCR), which was established in 1987 between Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The MTCR was strengthened in 2002 with the Hague International Code of Conduct against Ballistic Missile Cooperation (HCOC), which any country can sign up to.

In addition to multilateral treaties, many countries have domestic laws that prohibit the export of advanced technology and hardware related to the joint development of space assets. Unlike multilateral treaties, these national laws have enforcement provisions that go beyond mere political ramifications.

With this in mind, we will investigate the case of the United States. In the United States, the State Department and the Department of Defense are responsible for export controls. Under the Arms Export Control Act, the State Department is the lead agency for the International Traffic in Arms Regulation (ITAR) and maintains the United States Munitions List (USML). This work is performed by the Directorate of Defense Trade Controls (DDTC), a specialized division within the State Department.

For large space and satellite programs, virtually all space-related technologies are subject to ITAR.

DDTC has authority over the export of defense articles and defense services that are subject to the U.S. Munitions List and the International Traffic in Arms Regulations (ITAR). ITAR refers to the export control regime established primarily under the Arms Export Control Act, as amended [11].

Meanwhile, the U.S. Export Administration Act authorizes the Department of Commerce to administer the Export Administration Regulations (EAR), which in turn creates the Commerce Control List. The U.S. Bureau of Industry and Security (BIS), an agency within the Department of Commerce, performs this task.

The EAR controls the sale or export by U.S. persons of virtually all U.S.-origin hardware, software, and technical data (and related services) based on a system of classification codes maintained by BIS. The EAR also implements certain export and license restrictions based on the end use of the hardware, software, or technical data or the end user or jurisdiction to which the hardware, software, or technical data is proposed to be exported. Commercial spacecraft components and systems, related ground control TT&C equipment and software, and related detailed operational and anomaly-related technical data are subject to EAR licensing requirements.

Ultimately, the joint development of space assets involves dual-use items and therefore must comply with export controls and trade secrets. In the case of joint development with the United States, it is likely that regulatory approvals from the State Department’s Directorate of Defense Trade Controls (DDTC) or the Commerce Department’s Bureau of Industry and Security (BIS) will be required.

3.5. Investment Regulation

Mergers and acquisitions by foreigners or joint research under the guise of legitimate investment can lead to the leakage of national core technologies held by Korean institutions or companies. Major countries, including Korea, are responding to this through placing restrictions on foreign investment, and hence joint research on space asset development is bound to be affected by these laws and policies. For reference, the Ministry of Trade, Industry and Energy (MOTIE) designates and notifies core national technologies through the Notification on the Designation of National Core Technologies. As of 4^th of September 2024, four technologies have been designated as core national technologies in the space sector [12]. The United States has identified space technologies and systems as CET technologies critical for national security [13].

In the United States, the Exon-Florio Act of 1988 was introduced to limit foreign mergers and acquisitions in response to the criticism towards existing laws which were inadequate to deal with technology leakage through legal channels [14]. The Act provides scrutiny and veto power over foreign mergers and acquisitions that could affect national security. Under this Act, foreign companies seeking to acquire or merge with U.S. companies must file a preliminary notification to the Committee on Foreign Investment in the United States (CFIUS), a division of the U.S. Department of the Treasury. If these procedures are not satisfied, the companies must provide information about the transactions. If CFIUS determines that the merger or acquisition could adversely affect national security, CFIUS may recommend the termination of the transaction to the president, who can then approve within 15 days [15].

In response to the intensifying technology competition between US-China, the U.S. enacted the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which enhanced the scope and scope of CFIUS’s review of foreign investments, as well as its functions and authorities [16]. Namely, under FIRRMA, CFIUS is authorized to: (i) extending CFIUS’s review of certain real estate transactions to military or U.S. government facilities or in close proximity to national security sensitive assets; (ii) including reviews of joint ventures; and (iii) reviewing non-controlling investments in U.S. businesses involving critical technologies (including emerging and foundational technologies), critical infrastructure, or the collection of sensitive data on U.S. citizens, ⅳ) converting filing requirements for foreign companies from voluntary to mandatory in certain cases; and ⅴ) enhancing the scope and scope of its review, as well as its functions and authorities, including differentiating between foreign investors from countries that have “special concerns” about acquiring critical technologies or critical infrastructure that will affect U.S. leadership in areas related to national security [17]. Therefore, it is necessary to comply with the relevant laws in consideration of the fact that joint development of space assets may not proceed due to investment regulations.

3.6. Intellectual Property Rights

In order for the joint development of space assets to be successfully concluded, it is necessary to clearly define the ownership and utilization relationship of intellectual property rights such as patents and works acquired as a result of joint development of space assets. In particular, there must be an agreement on the ownership, use, and joint use of intellectual property rights such as advanced technology, know-how, design drawings, etc. that arise as a result of joint development of space assets.

If the agreement on such intellectual property rights is unclear, the joint development of space assets may result in disputes. If the intellectual property rights are not specified in the joint development agreement, each party (or its assignee) may claim ownership or license rights to patents, copyrights, trade secrets, etc. against the other party. Therefore, it is necessary to explicitly stipulate on the joint development agreement the rights of the parties to own, use, profit, license, or otherwise exploit the results of the joint development.

3.7. Risk Allocation

Space asset co-development requires tremendous collaboration between builders, operators, and launch organizations, and these co-development programs can involve a prime contractor or individual contracts with multiple contractors lasting up to 15 years or more across the satellite design, development, integration, and test phases. In addition, the first few months after the satellite is in orbit are when the satellite is exposed to the real world and the probability of failure is high. In general, risks associated with space asset co-development include design failures, hardware failure or degradation, and software issues. Therefore, launching, placing, and operating a satellite into the orbit through a space asset joint development is a very risky program.

The design, construction, launch, and disposal of space assets involves risks of defects and deficiencies, as well as risks of failure and explosion, and the allocation of these risks raises legal issues. These risks can be allocated in space asset joint development agreements through 1) disputes arising from termination for convenience, 2) representations and warranties, and 3) indemnity. Risk allocation provisions should be carefully considered in space asset joint development agreements, as they are an institutional device to not only allocate risk appropriately, but also to minimize the likelihood of satellite disputes [18].

3.8. Dispute Resolution

The space asset development industry is comprised of many different aspects, ranging from upstream activities such as the manufacture and launch of satellites, to midstream activities such as the production, sale and distribution of satellite data, to downstream activities in the form of satellite applications or satellite broadcasting for use on Earth. These activities form a significant part of space asset (co)development, and it is therefore common for the various activities involved in space asset (co)development to be carried out by contracts between different entities based on different jurisdictions. These agreements address the legal issues related to the (co)development of space assets and how the effected of risks are to be distributed. In particular, it almost always covers insurance, confidentiality, and export controls due to the dual-use nature of the space asset technology [19].

In the NewSpace era, the space asset development industry is expanding in scope and complexity, encompassing telecommunications, energy, roles, propulsion, artificial intelligence, optics, and more, as not only states but also private companies participate in space asset development. As a result, space asset joint development agreements need to cover and distribute various stakeholders, complex technologies, and unpredictable risks. These characteristics have led to an increase in disputes over space asset co-development agreements.

As the direct participation of private companies in space activities increases, disputes related to the (co)development of space assets are bound to increase. Private companies are more active than national organizations in resolving disputes related to the (co)development of space assets. This is because private companies do not have diplomatic or political leverage and are able to calculate the cost and risk exposure of fulfilling their contractual obligations and resolve disputes by forcing the other party to fulfill the contract or pay damages if necessary [20]. Some disputes regarding space asset development contracts are resolved through International Commercial Arbitration. For example, the European Space Agency (ESA) provides for arbitration in Article 35(2) of the General Clauses and Conditions for ESA Contracts [21]. Private companies such as SpaceX, Avanti, Boeing, Airbus, and Arianespace have also included arbitration clauses in their space development contracts.[22] International arbitration has been found to be used by both state and non-state actors to resolve publicly known space-related disputes, particularly in the satellite development industry [23].

Disputes over space assets that have led to international arbitration have typically involved delays in the delivery of satellites, incorrect orbital placement of satellites, defects in satellites already in orbit, leasing of satellite capacity, rights to orbital locations and frequency bands, export controls, and cancellation of space contracts [24]. Space assets are expensive assets and require significant economic resources to manufacture, launch, and operate. As a result, private companies involved in space asset development, as well as national organizations and public agencies, will seek to share financial costs and economic risks through joint development with companies or organizations of other nationalities. Companies in the space asset development industry therefore recognize the need to ensure that their development is subject to international investment protection.

Given that a significant amount of financial resources are required to put a space asset on orbit and to operate it, and considering the corresponding risks and the economic and reputational contribution of the host government, space asset development is likely to meet the requirements of both most bilateral investment treaties and the definition of “investment” under Article 25 of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States [25]. Investments in space assets may be protected by international investment protection treaties if they qualify as “investments” as customarily required by bilateral investment treaties [26].

3.9. Insurance

Insurance is the best way to distribute risks among all parties involved and it works in conjunction with a waiver of claims under a lawsuit [27]. In many cases, the laws of the relevant government may require an insurance in order to obtain a license or approve the joint development of satellite assets. Even if an insurance is not required by the government’s laws, it should be taken into consideration when entering into a space asset joint development agreement. As with export controls, space insurance is an essential consideration factor for both large satellites and smaller satellite projects.

When designing insurance for joint development of space assets, the scale and cost of the joint development should be considered. If this is not feasible for the participants in the joint venture, it is advised to use an insurance broker with experience in the space industry who can advise on the need, feasibility, and financial implications of securing the insurance. However, it is possible that a joint venture may decide that a certain insurance is too expensive to have, in which case the joint venture will bear the full risk of the satellite failure or loss.

The insurance industry has been providing space insurance for large private space projects, such as private satellite operators and Earth observation companies, and these policies cover a number of possible events. Space insurance can provide compensation on events such as the misplacement of satellite in a wrong orbit or being equipped with faulty equipment, launch failure or in-orbit failure, total or partial loss of the satellite, or simply loss or reduction of services (e.g., satellite communications services). Insurance can also cover claims from third parties (those not contractually involved in the joint development of space assets) or parties and companies with whom you have a contractual relationship, such as industrial business partners.

4. CONCLUSION

The joint development of space assets is characterized as a long-term, high-risk project involving cutting-edge technology and large amounts of capital. It is also a business that reflects the diverse interests of the countries, governments, and private specialty companies involved in the joint development, as well as the companies that make contracts with them. In addition, it is an international project that requires consideration of both national and international laws when examining legal considerations.

Therefore, joint development of space assets is necessary to secure autonomy in space in the era of US-China competition, resolve the imbalance in the supply and demand of space assets, reduce costs, accumulate cutting-edge science and technology, and take the lead in peaceful development of space. In order to succeed in the joint development of space assets, it is necessary to establish a legal way to hedge various risks related to joint development. To this end, this paper focuses on the formation of contractual relationships for the execution of joint development and the design of contracts accordingly. We also analyzed contract cases related to joint development of space assets. Based on this, we first presented general considerations for joint development contracts, including financing methods, development of governance structures, licenses, permits, approvals, export controls, attribution of intellectual property rights, risk and liability sharing and warranty periods, dispute resolution procedures, government risk protection, insurance, and confidentiality. In addition, the legal considerations for the design and construction, launch, operation, and disposal of space assets along their life cycle were discussed.

By considering various legal issues related to joint development of space assets, the risks of joint development can be distributed. Based on this, it is necessary to build trust and cooperation among the joint development participants to ensure that joint development leads to sustainable space development.