Why Did Park Hyun-joo Invest in Musk? "Musk's Innovation DNA Resonates with Mirae Asset"

"Chairman Park Hyun-joo Emphasizes 'Innovation' in Decision Making"
Elon Musk, the Ability to Turn Dreams into Reality
SpaceX, Long-Term Growth of the Space Industry

[Asia Economy Reporter Hwang Yoon-joo] "Investing in Elon Musk's innovation DNA."

Recently, Mirae Asset Group's investments have attracted market attention. Coincidentally, all were businesses of Elon Musk, CEO of Tesla. Mirae Asset Global Investments formed a fund worth 300 billion KRW (Mirae Asset Partners No. 11 Private Equity Fund) to jointly acquire shares of Twitter with Musk. Mirae Asset Securities contributed $157.96 million (approximately 224.7 billion KRW), and other affiliates also participated. In July, the group established the 'Mirae Asset Global Space Investment Association No. 1' and invested $100 million (about 142.2 billion KRW) in SpaceX.

According to group insiders, the 'innovation' philosophy emphasized by Chairman Park Hyun-joo of Mirae Asset Group since its founding has led to a distinctive investment approach in the U.S. A senior group official said, "One important factor Chairman Park considers when making decisions is 'innovation.' The innovation mindset that Chairman Park emphasizes?from organizational management to business?aligns well with Elon Musk's innovation DNA."

After completing the two projects, Chairman Park reportedly said, "We may participate in other investments by CEO Musk," and "We may announce other projects." This reflects the trust between Chairman Park and CEO Musk.

[Image source=Yonhap News]

A group executive emphasized that the 'innovation' Chairman Park stresses is not a pie-in-the-sky dreamer’s temperament. It is an evaluation that they bet on Musk CEO’s ability to realize his dreams. The electric vehicle business is a representative example. When Musk, who had no prior experience in the manufacturing industry's 'flower,' the complete automobile sector, revealed his vision for electric vehicles, many were skeptical.

Now, Tesla holds the number one market share in the electric vehicle market. Thanks to Tesla, the secondary battery and materials industries are also growing together. Mirae Asset Global Investments quickly increased its market share in the exchange-traded fund (ETF) market through thematic products such as 'electric vehicles.' This shows that where there is innovation, there is opportunity, and where there is opportunity, money flows.

From an investor’s perspective, CEO Musk is an unpredictable figure. Mirae Asset Group also experienced a rollercoaster ride regarding the Twitter acquisition due to Musk’s decision to acquire Twitter and subsequent mentions of contract termination, raising the possibility of lawsuits. A Mirae Asset Group official said, "Although it is past news, we were surprised when CEO Musk pointed out subscriber issues," adding, "He can be seen as a spontaneous person, but he is excellent as a manager."

They also emphasized that the SpaceX capital increase is not simply an investment in a 'dream.' A senior group official said, "In the industry, it is said that 'stocks are art, and bonds are science.' Musk is someone who has the ability to realize dreams, and Chairman Park invested in his innovation."

He said, "The space industry is difficult to generate profits in the next 1 to 2 years, but thinking about 5 to 10 years ahead, it seems like it will make big money like the electric vehicle industry," adding, "We invested because we saw the numerous added values that can be created from the technology in this field."

This content was produced with the assistance of AI translation services.