South Korean retail investors' fervor for SpaceX highlights the intense global market demand for this rocket and artificial intelligence company.
According to data from the Korea Securities Depository, on its official debut on June 12 (Friday), more than 14 million individual investors in South Korea recorded a net daily purchase of the stock amounting to $796 million. This propelled it to become the most favored US stock holding among Korean retail investors. This single-day net purchase figure even surpassed the total cumulative net purchases of any other US stock over the past three months.
Since its listing, SpaceX shares have surged by 49%, elevating the company's market value to $2.65 trillion, which is approximately $8 billion higher than Amazon. The massive buying by Korean retail investors occurred against the backdrop of these investors being previously excluded from the SpaceX IPO, further underscoring the company's appeal among the global retail investor community.
Missing the IPO, Investors Rush to Buy Post-Listing
Unlike Japan and Australia, South Korea did not open channels for retail investors to participate directly in the SpaceX IPO subscription. Mirae Asset Securities Co., one of the underwriters for this IPO, had offered subscription opportunities to some specific investors but ultimately failed to secure any allocation.
This misstep has drawn regulatory attention. The Financial Supervisory Service of Korea subsequently expanded its inspection scope of Mirae Asset Securities to include its failure to obtain SpaceX shares in the IPO.
Excluded from the IPO, Korean retail investors chose to "catch up" in the secondary market. The nearly $800 million net purchase on the first day vividly illustrates the concentrated release of this long-suppressed demand following the listing.
The Musk Effect: A Long-Standing Preference
Korean retail investors' enthusiasm for assets associated with Elon Musk is long-standing. According to Korea Securities Depository data as of June 15, Korean individual investors collectively hold Tesla stock worth $25.9 billion, making them a significant shareholder group for Tesla that cannot be ignored.
ETFs related to SpaceX are also highly sought after. According to the same data, over the past month, exchange-traded funds investing in SpaceX saw net inflows of $301 million, demonstrating Korean retail investors' strong willingness to gain exposure to this asset through various channels.
In the three months leading up to June 12, Micron and ETFs tracking the Nasdaq 100 index ranked as the second and third most popular US stocks among Korean retail investors, with net purchases of $748 million and $696 million, respectively—both figures were surpassed by SpaceX's single-day purchase amount on its debut.
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