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[Apha Biz=(Chicago) Reporter Paul Lee] Mirae Asset Securities' equity capital, an overseas subsidiary, exceeded KRW 4 trillion. Twenty years after establishing its first corporation overseas, its equity capital has increased 600 times.
Dollars earned from abroad are also steadily increasing. It is considered one of the most successful cases of overseas expansion throughout the domestic financial sector.
According to a semiannual report by Mirae Asset Securities on the 22nd, the company's overseas subsidiary's equity capital stood at $3 billion as of the end of June. The amount converted into Korean won amounts to 4 trillion won. Mirae Asset Securities launched its overseas business in 2003 when it established its first corporation in Hong Kong. At that time, the equity capital of the Hong Kong corporation was $ 5 million. In just 20 years, the size of the overseas corporation grew 600 times. Net profit is steadily increasing as well. In 2017, right after the acquisition of Daewoo Securities, Mirae Asset Securities' overseas subsidiary earned a total net profit of 66 billion won. The scale rose to 142.7 billion won last year. Pre-tax profits earned by overseas subsidiaries of all affiliates of Mirae Asset Group, including Mirae Asset Asset Management and Mirae Asset Life Insurance, reached 446.8 billion won last year. It is 22.7% of the group's total pre-tax profit (1.9653 trillion won).
Both inside and outside the group, they assessed that differentiated local strategies are paying off. For example, in Southeast Asia, where online trading culture has developed, the market share is increasing based on home trading system (HTS) and mobile trading system (MTS). Indonesia is leading the expansion of online transactions by introducing MTS and HTS for the first time in the country. Mirae Asset's share of stock trading last year was 8.15%, ranking first among all securities firms.
Developed countries such as the United States and the United Kingdom are digging into the market through mergers and acquisitions (M&A). Mirae Asset Asset Management entered the global Exchange Traded Fund (ETF) market in 2011 by acquiring Canada's Horizon ETFs’.
It is also worth noting that the selection and concentration centered on the ETF market. Mirae Asset Group acquired Global X (Global X), a US ETF company, for $ 488 million in 2018 and acquired Australian ETF operator 'ETF Securities’' along with Global X in June last year. It bought British financial firm GHCO for $ 35 million this year. This company serves as an LP (Funding) for ETF.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
