Will Korean investors get rare access to SpaceX IPO?

Mirae Asset Securities is pushing to secure up to $5 billion in shares from SpaceX's upcoming IPO, in a bid to offer South Korean retail investors direct access to one of the world's most anticipated listings.

If successful, the move would mark the first time local retail investors gain such access to a major global IPO. As a first-of-its-kind attempt, the process would require regulatory approval and coordination across multiple jurisdictions.

In the US, underwriters typically allocate IPO shares to institutional investors through a book-building process. In Korea, however, offering shares to retail investors requires submitting a registration statement to financial authorities and proceeding through a public subscription process.

The Financial Supervisory Service, the country's top watchdog, is reportedly in the early stages of discussions with Mirae Asset Securities over how such a structure could be implemented.

The timeline poses a key challenge. A registration statement typically takes at least 15 business days to become effective. With SpaceX widely expected to make its market debut as early as June, the window for completing the process is tight, raising uncertainty over whether retail participation can be arranged in time.

If regulatory hurdles or timing constraints prove too high, Mirae Asset Securities may instead distribute the shares to institutional investors or private equity funds.

Meanwhile, local asset managers are racing to secure exposure to SpaceX ahead of the highly anticipated listing through exchange-traded funds.

Mirae Asset Global Investments, an affiliate of Mirae Asset Securities, is set to list the Tiger US Space Tech ETF on Tuesday. Tracking the Akros US Space Index, the ETF plans to include SpaceX in its portfolio at a weighting of up to 25 percent within two business days of its IPO.

"The ETF is designed to strategically capture the listing momentum of SpaceX, which is expected to shape the direction of the global space industry," said Kim Nam-ho, head of the global ETF management division at Mirae Asset Global Investments, during an online seminar held Monday.

"The space industry is moving beyond a launch-centric phase and expanding into stages focused on utilization and revenue generation," he added.

Korea Investment Management, an affiliate of Korea Investment & Securities, is also set to list the Ace US Space Tech Active ETF on the same day, tracking the FnGuide US Space Tech Index.

The fund constructs its portfolio exclusively with space-related companies, excluding those in aviation or defense, and adopts an active strategy that allows flexible inclusion of new entrants. It is expected to add SpaceX following its listing.

Portfolio manager Kim Hyeon-tae, head of the Global Quant Investment Department, holds a Ph.D. in physics from Seoul National University, the asset manager said, highlighting his expertise.

Other asset managers, including Shinhan Asset Management and KB Asset Management, are also expected to launch similar ETFs. Some are revising their index methodologies to allow the swift inclusion of SpaceX.

"With SpaceX, an IPO of such scale and investor interest is unprecedented, triggering a major shake-up in the Korean ETF industry," an official from the Korea Financial Investment Association said.