The Financial Supervisory Service (FSS) has effectively decided to extend its inspection period for Mirae Asset Securities (006800.KS) over the "SpaceX IPO non-allocation" controversy. The move aims to examine the entire process behind the failed share allocation.
In particular, observers suggest a strong possibility that the FSS will also review whether management's internal controls were properly maintained, including remarks on SpaceX made by Park Hyeon-joo, chairman of Mirae Asset Group.
According to the financial investment industry Thursday, the FSS began an on-site inspection of Mirae Asset Securities on the 5th of this month, then shifted to a formal examination from the 9th, looking into the overall situation surrounding the failed SpaceX IPO allocation.
The FSS has typically conducted inspections over a one-week period, extending them when necessary. The inspection of Mirae Asset Securities covers a wide scope, and the regulator is said to have a strong intention not to set a time limit for now.
In addition to the registration process for individual and corporate professional investors who were eligible to subscribe to the SpaceX IPO, the FSS is further examining the entire process leading up to the failed allocation. Given the unusual situation in which Mirae Asset Securities failed to secure even a single SpaceX share, industry observers expect that aspects that could be viewed as advance promotion will also come under scrutiny.
Earlier, in a media interview in April this year, Mirae Asset Group Chairman Park Hyeon-joo anticipated that the volume of SpaceX IPO shares to be allocated would be substantial and outlined a plan to give as many investors as possible the opportunity. In response, authorities issued a verbal warning to Mirae Asset Securities to refrain from excessive marketing. The reason was that, at a time when neither the allocation volume nor whether investors would be able to subscribe had been determined, continued promotion amounted to "indirect marketing" and could cause confusion among investors.
