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Publication . Doctoral thesis . 2022

The Legal Aspects of International Space Financing : Project Finance Perspective for the Current Space Industry

Youn, Nayoung;
Open Access
German
Published: 23 Sep 2022
Country: Germany
Abstract

The space industry is considered a manifestation of the ‘NewSpace’ trend. Traditionally, investors have viewed the commercial opportunities of space as ‘high risk, high cost, and lengthy payment periods’ with high entry barriers. Though the commercial sector of space remains risky and expensive in comparison to other infrastructure sectors, several significant changes such as gradual improvements in managerial practices and the cost have dramatically reduced entry barriers and increased private interest in space. In addition, there are already a few cases using project finance, notably PPP, in the space industry. The change has already sparked various legal issues and may face more future challenges that require harmonized space law regulation. That is why this study examined the international legal regimes of other industries in order to advocate for the development of a more stable and efficient project finance framework for the space industry. This thesis discovered that each infrastructure industry has its own unique international legal regime along with multiple successful instances. Because there were only fundamental policies unrelated to finance at the beginning of the fundraising from private and/ or new participants, each industry organized its own legal framework. Numerous successful cases have arisen as a result of having individual legal frameworks that contain each distinctive characteristic based on necessary provisions for trustworthy project financing. A new uniform legal framework for the space industry can be envisioned from comparisons to other legal regimes for project financing. When an industry has clear and comprehensive provisions and provides broad legal guidance on industry-specific hot issues, project finance can be easily achieved. Whichever of the two ideal legal frameworks is formed, it will certainly benefit all participants in the space industry for those who employ project financing schemes. The new uniform legal framework is to promote international cooperation, encourage developing countries to develop their own infrastructures, and ensure equitable access by all participants in outer space activities.

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Dewey Decimal Classification: ddc:340

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