South Korea Proposes $18 million Insurance Limit for Rocket Launch in Brazil

Global Insurance Desk: South Korea has proposed a maximum liability insurance limit of 18 million US dollars for the launch of the “Hanbit-Nano” rocket from Brazil. The rocket is manufactured by Innospace, a private South Korean space company. This is the first such proposal in the country for a rocket from this type of private company.

According to a Yonhap report on 25 October, the Korea Aerospace Administration (KASA) of South Korea published a draft notification on 12 October.

Under South Korean law, even if a company of the country launches its own rocket from abroad, it must obtain government permission. Liability insurance is mandatory to obtain this permission. Therefore, even though the launch is taking place in Brazil, South Korea has proposed the insurance limit for Innospace’s rocket. In addition, Brazil’s permission and insurance-related conditions must also be complied with.

This is not a declaration of government compensation. Innospace itself will have to take the insurance. If anyone is injured or killed or anyone’s property is damaged in an accident during the launch, the insurance company will provide compensation according to the terms of the contract. This is called “third-party liability insurance.”

To determine the insurance limit, Innospace calculated how much damage could occur in an accident. For this, the “Maximum Probable Loss” (MPL) method was used. Risks of loss of life, property, and environmental damage were considered. Brazil’s space authority has reviewed the calculation.

In previous launches, Innospace had taken insurance of 15 million dollars. The new proposal is 3 million dollars or 20 percent higher than that. This is not the cost of insurance or the “premium”; it is the proposed maximum limit of the insurance.

Earlier, for three launch vehicles including the government-operated Naro and Nuri rockets of South Korea, the insurance had been set at 200 billion won. The new limit is about 12 percent of that. KASA has stated that the fact that South Korean territory is not directly at risk was also taken into consideration.

On 22 December 2025, the Hanbit-Nano failed 33 seconds after launch from the Alcantara Space Center in Brazil. Investigation showed that gas leaked from the front part of the first-stage combustion chamber of the rocket, causing the chamber to rupture. Innospace stated that no one was injured and no compensation claim was made under the related insurance.

According to insurance media The Insurer, the previous insurance was taken from Beazley of the United Kingdom. It did not include damage to the rocket itself. If the loss exceeds the insurance amount, who will provide the additional compensation will depend on the applicable law and the contract.

The proposal has not yet been finalised. The actual insurance amount may be determined within this period by complying with Brazil’s conditions. Innospace is considering plans for a relaunch in the first half of 2027.