Capital Increase in US
Mirae Asset Daewoo Securities, former KDB Daewoo Securities, made a capital increase of US$100 million (113.5 billion won) to its subsidiary in New York, the U.S., in order to strengthen the overseas business.
The latest movement was made in just six days after Park Hyeon-joo, chairman of Mirae Asset Financial Group, revealed a plan to increase capital to overseas subsidiaries during the open business strategy conference on Apr. 15. It showed Park’s will for “speed management” to strengthen the global competitiveness of Mirae Asset Daewoo Securities.
Mirae Asset Daewoo publicly announced that it participated in a paid-in capital increase to its affiliate in New York and acquired 25,000 new stocks at US$100 million (113.5 billion won) on the 21st. Accordingly, the capital of the subsidiary increased by nearly 10 times from US$12 million (13.62 billion won) to US$112 million (127.12 billion won).
Founded in 1992, Mirae Asset Daewoo’s subsidiary in New York has been selling Korean stocks to American institutional investors and selling American stocks to Korean institutional investors. With the latest capital increase, however, it will directly invest in assets, including shares in the U.S. and seek investment opportunities in North America and Central and South America.
An official from Mirae Asset Daewoo said, “The latest capital increase has made to secure finances for the wealth management business expansion of the affiliate in New York and expand its alternative investment and principal investment. The subsidiary will make not only a direct investment in the market but also a joint investment with the related divisions in the headquarters and Mirae Asset Global Investments when it finds other investment opportunities.”
Meanwhile, Chairman Park announced the plan to increase capital by 300 billion to 500 billion won (US$264.32 to 440.53 million) to its affiliates in the U.S., Indonesia, Vietnam and London, in which Mirae Asset Daewoo has already local offices, earlier. Thus, additional paid-in capital increase will go on in the future.
Meanwhile, Mirae Asset Securities Co. will establish a committee for the merger with Mirae Asset Daewoo in the middle of next month. The committee will be led by Chairman Park and it will consist of nine members, including Mirae Asset Securities President Cho Woong-ki and Mirae Asset Daewoo CEO Hong Sung-guk.
An official from Mirae Asset Securities said, “As the company seeks to establish a legislative body called “Integration Promotion Committee,” the efforts for the completion of the merger on Oct. 1 will be accelerated along with the working-level integration task force team which currently works on the merger,