Artemis II launch, SpaceX IPO expectations fuel Korean aerospace rally - The Korea Times

The Artemis II crewed lunar mission lifts off from Pad 39B at Kennedy Space Center in Cape Canaveral, Fla., Wednesday. AFP-Yonhap

NASA's historic Artemis II lunar launch and SpaceX's anticipated record-breaking initial public offering (IPO) are driving massive capital inflows into Korean aerospace equities and exchange-traded funds (ETFs).

NASA successfully launched Artemis II on Wednesday at 6:35 p.m. (local time), marking the first crewed lunar mission in 54 years. The milestone accelerated market momentum sparked by a Bloomberg report that SpaceX filed confidentially for an IPO with the U.S. Securities and Exchange Commission for a June listing. SpaceX is targeting a 2,648 trillion won ($1.76 trillion) valuation and a $75 billion capital raise, which would surpass Saudi Aramco's record $29 billion IPO.

Korean market shifts

Domestic asset managers moved quickly to launch aerospace ETFs to capture the capital rotation. Korea Investment Management received a Korea Exchange ticker symbol for its ACE US Space Tech Active ETF, expected to launch in May. Hana Asset Management introduced the 1Q US Aerospace Tech ETF last November, while Samsung Asset Management rolled out the KODEX US Aerospace ETF last month.

Korean aerospace stocks jumped an average of 55.6 percent this year through March 13, outperforming the broader market, including KOSPI's 28.8 percent and Kosdaq's 20.4percent gains. Hanwha Aerospace shares closed 6.3 percent higher despite broader market weakness.

However, Mirae Asset Securities -- an investor in SpaceX -- reversed course after gaining more than 2 percent premarket as a broader market sell-off weighed on sentiment following U.S. President Donald Trump's hard-line remarks on Iran.

Downstream commercial operations

Daishin Securities researcher Kim A-young attributed the sector's upbeat outlook to expanding budgets driven by the growing rivalry for space dominance. She cited the race for space dominance between the U.S. and China in 2026 and 2027, increased European launch frequencies and the transition to low Earth orbit commercial space stations.

"Domestic events also support this growth, including repeated launches of the Nuri rocket and military reconnaissance satellite deployments," Kim said.

The Korea Aerospace Administration confirmed its research and development budget for this year at 949.5 billion won, up 4.5 percent from the previous year.

KB Securities researcher Sung Hyun-dong recommended a corporate-centered approach focusing on downstream commercial players -- companies monetizing satellite data, ground station operations and communications services.

"The domestic space industry grew 9.5 percent annually from 2022 to 2024," Sung added.