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Mirae Asset Chairman Says Financial Industry Lacks Dynamics
In a Debt Trap
Mirae Asset Chairman Says Financial Industry Lacks Dynamics
  • By matthew
  • March 6, 2015, 02:30
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Park Hyeon-joo, chairman of Mirae Asset Financial Group.
Park Hyeon-joo, chairman of Mirae Asset Financial Group.

 

Mirae Asset Financial Group Chairman Park Hyeon-joo emphasized the importance of global asset allocation through a letter written during a flight to the U.S. on Mar. 2.   

​Park has been visiting financial investment firms all over the world for three months, starting from December last year. During this trip to Asia, Australia, Europe, and the U.S., Park sent messages to his employees about the beginning of the era of China’s capitalism, and a hopeless trend of a rapid increase in debt, an unprecedented basis of low interest all around the world. 

In the letter, he said, “Under present conditions, raising asset income is an important task for us, along with increasing income and reducing liabilities. If I meet a customer now, I want to tell him over and over to please trust Mirae Asset, and do global asset allocation.” 

He also said, “I have been keeping a low profile and focusing on the group’s strategy and global businesses for years in order to significantly improve Mirae Asset’s ability at asset allocations and its quality of services.”  

He continued, “The debt problems should be solved with income increments. Also, economic growth and the improvement of asset income is needed. The unprecedented low interest around the world shows that there are great inherent dangers economically and socially. We are now caught in a Debt Trap, and increasing debts are bound to bring on a crisis.”

Park also added, “Not only is economic growth but also the improvement of asset income needed as well. Our society should be more concerned about how to increase a return on assets through global asset management, together with debt reduction at the same time.”

He argued that the difficulties of long-term investments and asset allocation overseas due to regulations should also be solved.

Park said, “Regulations lessen the dynamics of the financial industry. The regulations on insurance businesses’ long-term alternative investments are excessive. If the government slightly eases the regulations on the the asset management of insurance companies, I will make all efforts to develop another business model.” 

Meanwhile, he also revealed his plan to strengthen international sales, arrange its manpower resources for marketing in the west and major cities in the U.S., and expand the group’s equity capital to 10 trillion won (US$9.09 billion) within three years through an IPO of its subsidiaries.