What should I watch out for when buying listed SPAC shares on the exchange?

A SPAC is a company with no business operations whose sole purpose is a merger, so if the merger falls through and it dissolves, the amount returned is based on the escrowed funds, and investors who bought at a higher price in the market may incur losses.

A Korea Exchange handbook describes a case in which a SPAC rose 113% after hitting the upper price limit on 4 of its first 8 trading days, was designated an investment warning issue and, in response to an inquiry disclosure request, stated that no merger was in progress, as well as a case in which an investigation was opened into allegations that people connected with a merger target bought up SPAC shares before the announcement. Prices driven only by merger expectations can swing widely, so check the disclosures and judge carefully.