Taking Shape as Global Investment Bank
Mirae Asset Daewoo is diversifying its global investments based on its 8 trillion won equity capital.
In 2018, 14 South Korean securities companies recorded a combined net income of US$123 million with a year-on-year growth of 156 percent and Mirae Asset Daewoo accounted for half of the total. During the period, the overseas branches of Mirae Asset Daewoo posted a profit of approximately 85 billion won, equivalent to about 15 percent of the company’s total pre-tax income. In other words, Mirae Asset Daewoo is taking shape as a leading global investment bank.
This year, the company acquired Tour Majunga in Paris for one trillion won in March and invested US$375 million in a new landmark to be located in Times Square, New York. Also, it participated in the mezzanine financing for the Goldin Financial Global Centre in Kowloon, Hong Kong with the Government of Singapore Investment Corporation and Deutsche Bank.
Mirae Asset Daewoo is engaged in various investment banking activities as well as real estate investments. For example, Mirae Asset Daewoo Hong Kong participated as a lead manager in the overseas listing of global unicorn company Maoyan Entertainment. Mirae Asset Daewoo is investing a lot in Asian startups, too. The examples include its 60 billion won investment in Big Basket in India.
Most of the overseas investment is leading to the company’s principal investment as well as sell-down in South Korea. “The dividend income resulting from the overseas investment can lead to large recouped profits in 2020 and 2021, which is expected to contribute a lot to the company’s ROE,” said Hana Financial Investment analyst Shin Dong-ha. The ROE, which was 5.6 percent last year, is expected to top 6 percent this year.
Mirae Asset Daewoo is leading a change in the domestic retail sector as well. When it comes to international stock brokerage, the company is by far the largest player in South Korea with a deposit value of more than six trillion won.