[News Today] Military spy satellites uninsured

[LEAD]

Two of South Korea's five reconnaissance satellites are now experiencing key component failures.

And in the course of KBS' reporting, it was revealed that these satellites, each worth over 100 billion won, are all uninsured. Even if further failures render them inoperable, compensation would be limited to just about 5 billion won per satellite.

[REPORT]

"3, 2, 1, ignition and is full power and lift off! Go Falcon! Go Bandwagon-3!"

The fourth out of five reconnaissance satellites launched in April last year.

Last October, about five months after liftoff, a component called the attitude control actuator which rotates the satellite for target imaging, malfunctioned.

Each satellite has four actuators, three for immediate use and one as backup.

Even if one fails, the satellite can still operate using the backup but if one more fails, then the satellite becomes inoperable.

Currently, one actuator has failed each on two satellites.

But KBS has found that none of the satellites are insured.

What's known as in-orbit insurance compensates for breakdowns during satellite operation.

The military explained they didn't take out insurance because they couldn't provide sensitive military information to insurers.

However military intelligence authorities did contact an insurance broker in the second half of last year due to satellite failure concerns.

And once the issue of malfunctioning components surfaced, the Defense Acquisition Program Administration also belatedly reviewed ways to enter an insurance policy.

Baek Sun-hee / Rebuilding Korea Party

They pushed on without insurance or compensation clauses, a policy failure driven by complacent thought 'what could go wrong?'.

Each satellite costs about KRW 100 billion, some USD 67 million.

Yet if further component breakdowns make the satellite inoperable, maximum compensation available from the manufacturer, under contract, is KRW 5 billion at best.

The Defense Acquisition Program Administration said it will consider insurance option starting with the next reconnaissance satellite project.