FSS Launches Probe into Mirae Asset's 'Zero-Share' SpaceX IPO Fiasco; Past Remarks by Chairman Park Under Scrutiny

The Financial Supervisory Service (FSS) has decided to investigate the entire process that led to the failure of public offering share allocations regarding Mirae Asset Securities' "SpaceX zero-share allocation" incident.

In particular, as Mirae Asset Securities' management actively promoted the offering before the allocation volume was finalized, authorities are likely to examine potential issues with internal controls.

According to financial authorities, the FSS is conducting an open-ended inspection of Mirae Asset Securities, looking into overall investor protection issues related to this incident.

It is reported that complaints regarding the failed SpaceX public offering allocation are also being filed with the FSS.

Financial companies involved, such as Mirae Asset Securities and Korea Investment Management—which promoted the inclusion of SpaceX public offering shares in its ETF products—are facing a barrage of consumer complaints and protests.

The FSS began an on-site inspection of Mirae Asset on June 5 and upgraded it to a formal investigation on June 9.

Within financial authorities, it is reported that while the actual volume of public offering shares allocated to each underwriter is at the discretion of the lead manager, this incident, in which not a single share was allocated, is viewed as highly unusual.

Authorities are reportedly paying close attention to the fact that Mirae Asset Securities engaged in active promotion early on, despite the high possibility that the volume of public offering shares could change during the lead manager's final allocation process.

In a media interview last April, Mirae Asset Group Chairman Park Hyeon-joo stated that he expected a significant volume of SpaceX public offering shares to be allocated and promised to provide opportunities to as many investors as possible.

It is expected that the authorities will examine the management's actions and the subsequent company-wide subscription process at Mirae Asset Securities to determine if there were overall issues with internal controls.

The issue of exaggerated or false advertising and overheated marketing in the financial sector has also come under fire. Korea Investment Management's "ACE U.S. Space Tech Active" ETF initially promoted that it would incorporate SpaceX public offering shares through Mirae Asset Securities, but ultimately had to acquire the stock through market purchases.

Due to disappointment over lower expected returns compared to incorporating public offering shares, the fund's share price closed down 10.81% on June 15 compared to the previous trading day.

Reported by Kim Minjeong | Video Editing: | Graphics by Yang Hye-min | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.