South Korean investors holding Tesla stock may face a 22 percent capital gains tax if Elon Musk proceeds with a potential merger between Tesla and SpaceX, intensifying speculation.

South Korean retail investors are significantly increasing their investments in Chinese artificial intelligence and chip-related stocks, despite strong performance in their domestic market.

A potential merger between Tesla and SpaceX could result in significant tax liabilities for Korean investors, according to a report from phnompenhpost.com.