The paper is to study and analyze the major issues and current problems of space law and policy to suggest the direction of Korean aerospace policy for future development facing the 21st century of air and space industry. It briefs the development of aerospace science and space law. It also outlines the special characteristics and present status of space law. It further reviews the regulatory regime of commercial space carriers, international telecommunication satelite and space environmental problems. Finally, it suggests the future directions of Korean space policy to develop as one of leading space countries in the 21st century.