20 Years After International Expansion
The overseas subsidiary capital of Mirae Asset Securities has exceeded 4 trillion won (US$2.99 billion). It is the largest among domestic securities firms. The net profit earned overseas is also steadily increasing.
According to the investment banking industry on Aug. 22, the capital of Mirae Asset Securities’ overseas subsidiaries exceeded 4 trillion won as of the first half of this year. It has been 20 years since the company’s initial overseas expansion in 2003, starting with Hong Kong. At that time, the Hong Kong subsidiary started with capital of US$5 million. It has grown nearly 600 times during this period. Currently, Mirae Asset Securities has expanded to 10 countries, including Indonesia, India, Vietnam, and the United Kingdom.
The net profit is also steadily on the increase. The net profit of the overseas subsidiaries of Mirae Asset Securities, which stood at 66 billion won in 2017, exceeded 1 trillion won the following year, 2018. It continues to generate a net profit of over 100 billion won annually. Mirae Asset Securities recorded a net profit of 63.4 billion won in the first half of this year as well.
The pre-tax profit of overseas subsidiaries for the entire group, including Mirae Asset Securities, in the past year was approximately 446.8 billion won. This accounts for 22.7 percent of the group’s total pre-tax profit of 1.9653 trillion won. The goal of the Mirae Asset Group is to increase the overseas share to half.
Park Hyeon-joo, chairman of the Mirae Asset Group, has been personally overseeing the overseas expansion since 2018 in his role as Global Strategy Officer (GSO). Recent reports indicate that Chairman Park has shown a keen interest in competitive overseas AI and robo-advisor financial firms.
Experts in the industry attribute the capital growth of Mirae Asset Securities’ overseas subsidiaries to its specialized overseas expansion strategies tailored to each regional group. In countries like those in Southeast Asia, where direct corporate entry alone can sufficiently secure competitiveness, they are introducing measures such as online account opening, a home trading system (HTS), and a mobile trading system (MTS) to increase their market share. In countries more financially advanced than South Korea like the U.K., on the other hand, they are opting to establish a foothold by directly acquiring local corporations rather than pursuing direct entry.
Analysis indicates that the pioneering introduction of MTS and HTS in the local market in Indonesia has proven to be effective. According to officials from Mirae Asset Securities, the launch of a fund mall, where funds can be sold online, also played a significant role in expanding their market presence. Currently, Mirae Asset Securities holds the top position among all securities firms in terms of stock trading market share in Indonesia, with a share of 8.15 percent as of last year.
The adoption of online account opening services and the bolstering of digital marketing strategies in Vietnam have received positive evaluations as well. Among all securities firms, it currently ranks fourth in terms of stock trading market share. Among foreign securities firms, it holds the top position in market share.
In London, which is regarded as one of the key hubs in the global financial market, Mirae Asset Securities made a significant move by acquiring the British financial firm GHCO in the second quarter of this year with investment totaling approximately US$35 million. GHCO serves as a critical liquidity provider (LP) for Exchange-Traded Funds (ETFs) to 18 ETF management companies, including prominent players such as BlackRock and Vanguard. This strategic acquisition signals Mirae Asset Securities’ commitment to pursuing further mergers and acquisitions of local European financial firms in the future.
The asset management firm Mirae Asset Financial Group has also been proactively engaging in overseas expansion and mergers and acquisitions, leading to assessments of synergies between the two companies. To date, Mirae Asset Financial Group has completed acquisitions that include “Global X” in the United States, “ETF Securities” in Australia, and “Stockspot.”