Paper Title
Exchange Listing Through Spac: Korean Evidence

Abstract
SPAC(Special Purpose Acquisition Company) first introduced in Korea at 2010, aims at merging with unlisted firms using the proceeds of SPAC�s IPO and seeks to realize high returns on investment by enhancing its value through the mergers. Compared to American SPACs, Korean SPACs have a large portion of individual investors, issue only common stock and they are only allowed to merge with the target firms to achieve the goal of SPACs. We find that 22 SPACs went public in the first phase (2010-2011) and 10 SPACs succeed in merging with target firms out of the 22 SPACs. In addition, out of the 39 SPACs in the second phase (2013-2015), 5 SPACs have merged with target firms. Using Korean stock market data, we document evidence that SPAC investors have a high probability of losing money even though the SPACs are successful in finding target firms.