As SpaceX Soars Toward IPO, Domestic Stocks Surge

Mirae Asset Securities, a SpaceX Shareholder, Up 85% This Year
Hanwha Systems, Domestic Satellite Producer, Also Up 73%

As Elon Musk's space company SpaceX moves forward with plans for an initial public offering (IPO), related companies such as Mirae Asset Securities and Seah Besteel Holdings are surging on the Korean stock market.

Domestic Related Stocks Soar on Expectations of SpaceX Listing

According to the Korea Exchange on February 1, Mirae Asset Securities' stock price soared by approximately 83% last month. Starting the year at around 23,000 won, Mirae Asset Securities closed at 42,750 won on January 30 in the KOSPI market. Mirae Asset Venture Investment also saw its share price jump by about 41% last month.

Mirae Asset Group invested 278 million dollars (400 billion won) in SpaceX between 2022 and 2023. With more than half of the 400 billion won investment reportedly coming from Mirae Asset Securities, the value of this investment has drawn significant attention.

SpaceX, founded by Tesla CEO Elon Musk, is currently in the process of selecting underwriters for its IPO. Reports that SpaceX is considering a merger with Tesla or artificial intelligence (AI) company xAI have further fueled the rally in related stocks. Bloomberg and other foreign media outlets have reported that SpaceX is reviewing a potential merger with Tesla and is also considering a corporate combination with xAI as an alternative.

The market estimates that SpaceX's corporate value could reach several hundred billion dollars. If SpaceX successfully goes public, the shares of SpaceX held by Mirae Asset Securities and Mirae Asset Venture Investment are expected to be newly revalued.

Ko Yeonsu, a researcher at Hana Securities, analyzed, "As of the end of the third quarter last year, Mirae Asset Securities' investment assets amounted to about 10 trillion won, so it is highly likely that gains from unlisted investment assets, including SpaceX, will begin to be reflected in earnest going forward."

Ahn Youngjun, a researcher at Kiwoom Securities, also evaluated, "If SpaceX's corporate value is estimated at 800 billion dollars, Mirae Asset Securities could potentially realize more than 600 billion won in valuation gains in the future."

Other space and aerospace-related stocks, including Seah Besteel Holdings, HVM, and Hanwha Systems, also posted strong gains. Seah Besteel Holdings' share price surged by 45% last month on expectations that nickel-based special alloys produced by its U.S. specialty alloy subsidiary SST will be used in SpaceX launch vehicles. HVM and Sphere also reportedly supply special alloys to SpaceX, with their share prices rising by 48% and 85%, respectively, last month.

Space and Defense Companies' Stock Prices Also Rise Sharply

Growing anticipation surrounding SpaceX has also sent the stock prices of domestic space and defense companies soaring. Hanwha Systems is a prime example, with its share price jumping about 73% last month.

Perspective view of Jeju Space Center completed by Hanwha Systems in Haweon-dong, Seogwipo City, Jeju

Hanwha Systems, which possesses independent satellite manufacturing capabilities, also operates the largest private satellite production facility in Korea, located in Jeju. The Jeju Space Center, operated by Hanwha Systems, can produce up to 100 satellites per year.

Lee Dongheon, a researcher at Shinhan Investment Corp., analyzed, "Hanwha Systems could see various space-related momentum this year, including the military surveillance and reconnaissance satellite project, selection as a multi-ministerial small synthetic aperture radar (SAR) satellite operator, and discussions on providing subscription services to the military."