The Financial Supervisory Service is closely watching whether it will classify Mirae Asset Securities' handling of the SpaceX IPO housing subscription as investment brokerage and intermediary activities under the Capital Markets Act, potentially imposing fines. If deemed an investment brokerage business under the Capital Markets Act, the Financial Consumer Protection Act (FCPA) would also apply, allowing fines to be calculated based on the investment amount. The outcome of this determination is expected to influence not only the scale of potential fines but also trigger broader impacts on future overseas IPO housing subscription services for companies like OpenAI and Anthropic.
According to information from the office of Kang Jun-hyun, a Democratic Party of Korea lawmaker serving on the National Assembly's Political Affairs Committee, the Financial Supervisory Service responded to requests for data on investor types, numbers, and fundraising results related to the SpaceX IPO housing subscription by stating, "We are currently processing inspection results, and it is difficult to provide specific details on inspection items." The Financial Supervisory Service conducted on-site inspections in June targeting Mirae Asset Securities, which handled the SpaceX IPO housing subscription, and Korea Investment Trust & Management, which faced controversy over false advertising related to SpaceX ETFs (exchange-traded funds), and is now processing the results.
Based on MoneyToday's comprehensive reporting, a key issue is whether the Financial Supervisory Service will classify Mirae Asset Securities' handling of the SpaceX IPO housing subscription as an investment brokerage business and apply the FCPA. The applicability of the FCPA is critical because it directly affects the scale of fines. Under revised financial consumer protection supervision regulations enacted in November last year, fines for investment-type products are calculated based on the investment amount. The total funds raised from professional investors through Mirae Asset Securities amounted to $500 million (approximately 684.2 billion won at current exchange rates), allowing for potential fines of up to 50% (342.1 billion won). Depending on factors such as the degree of illegality, whether it was a simple procedural violation, and post-violation remediation efforts, the fine could be reduced by half.
Opinions also exist within the financial investment industry that only the Capital Markets Act will apply, not the FCPA. If the Capital Markets Act is applied, liability for damages may arise based on principles such as duty of care and good faith. However, compared to the FCPA, both monetary penalties and damage compensation amounts are likely to be lower under the Capital Markets Act.
Legal experts anticipate that the Financial Supervisory Service will apply the investment brokerage classification and examine sales principles under the FCPA. Kim Hyun-seok, a lawyer at Clavis Law Firm, stated on a personal basis: "The procedure involved accepting customer housing subscriptions, collecting funds, and placing orders with overseas underwriters, which is more likely to qualify as an investment brokerage business under the Capital Markets Act than simple agency." He added, "If customers' orders were not submitted as valid housing subscriptions or if there were errors in processing the subscription procedures, disputes could arise regarding violations of the principle of good faith and duty of care under the Capital Markets Act."
Lawyers formerly affiliated with the Financial Supervisory Service also predict that the agency will classify the activity as investment brokerage and apply FCPA principles. While suitability and appropriateness principles and disclosure obligations do not apply to professional investors under the FCPA, prohibitions on unfair solicitation practices may still be enforced. There are also observations that procedural aspects, such as hastily registering individuals as professional investors specifically for the SpaceX IPO housing subscription, could become points of contention for the Financial Supervisory Service.
According to data obtained by People Power Party lawmaker Park Seong-hoon from the Korea Financial Investment Association, as of late July this year, Mirae Asset Securities had 3,154 professional investors, an increase of 789 (33.4%) compared to the end of last year. Notably, 376 new professional investors were added solely during June, when the SpaceX IPO housing subscription took place.
The financial investment industry is closely monitoring which provisions the Financial Supervisory Service will use as a basis for its disciplinary proceedings. This determination is a critical consideration in deciding whether to offer IPO housing subscription agency services ahead of major corporate IPOs such as those by OpenAI and Anthropic.
Regarding Korea Investment Trust & Management's exaggerated advertising about SpaceX, an investigation is also underway by the Financial Crime Investigation Division of the Seoul National Police Agency. Korea Investment Trust & Management has been sued for fraud against individual investors; if the allegations are substantiated, it could face criminal penalties under criminal law.
In this regard, Kang (Rep.) emphasized: "The essence of the SpaceX IPO housing subscription failure lies in ultimately breaking promises made to investors and causing harm." He added, "Regulatory authorities should conduct thorough inspections to hold asset management firms and sales companies appropriately accountable, while financial institutions must not focus on minimizing their responsibilities toward investors."
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