DistantNews
Support us
Financial Regulator Calls SpaceX IPO Share 'Zero Allocation' Unexpected, Launches Probe
🇰🇷 South Korea /Economy & Trade

Financial Regulator Calls SpaceX IPO Share 'Zero Allocation' Unexpected, Launches Probe

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Under investigation
  • Financial Supervisory Service (FSS) Governor Lee Chan-jin stated that the "zero allocation" of SpaceX IPO shares by Mirae Asset Securities was unexpected.
  • The FSS is investigating Mirae Asset Securities to understand the reasons for the failed allocation and to ensure investor protection.
  • Lee also addressed concerns about financial authorities' influence, stating the allocation failure was unrelated to the FSS's policies.

Financial Supervisory Service (FSS) Governor Lee Chan-jin described the "zero allocation" of SpaceX IPO shares by Mirae Asset Securities as an unforeseen event. He announced that the FSS has launched an investigation into Mirae Asset Securities to clarify the circumstances surrounding the failed allocation and to review investor protection measures.

This kind of situation was something I could not have imagined.

— Lee Chan-jinDescribing his reaction to the zero allocation of SpaceX IPO shares.

Lee stated during a press conference that he had not anticipated such an outcome, expressing that investors were left with their funds tied up when they could have potentially purchased shares on the first day of trading if they hadn't participated in the IPO. The FSS is examining whether communication issues by the lead underwriter or other factors contributed to the situation. The investigation aims to prevent similar incidents from recurring.

We need to conduct an investigation to determine if the lead underwriter's communication played a role, or if there were other factors.

— Lee Chan-jinExplaining the scope of the FSS investigation into Mirae Asset Securities.

Addressing claims that the FSS's guidance on overseas stock investments might have influenced the allocation failure, Lee dismissed the connection. He confirmed that funds were collected and converted to foreign currency, indicating that the lack of allocation was not directly related to FSS policies. He also noted that while global investment banks are not directly supervised by the FSS, the agency can request information and potentially seek assistance from the U.S. Securities and Exchange Commission if necessary.

From an investor's perspective, they could have bought shares on the first day of trading if they hadn't subscribed, but their money was tied up.

— Lee Chan-jinHighlighting the negative impact on investors due to the failed allocation.

In other matters, Lee mentioned that the FSS plans to conduct an on-site inspection of an asset management firm this week regarding allegations of exaggerated advertising related to SpaceX IPO inclusion. Separately, the disciplinary committee hearing for MBK Partners concerning the Homeplus situation is expected to resume in early July.

What does the failure to allocate shares have to do with the FSS?

— Lee Chan-jinDismissing the idea that FSS policies were responsible for the failed allocation.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog