[2020 Capital Investment Awards] Overseas Stock Assets 14 Trillion Won... Industry's First 'Net Profit 1 Trillion' in Sight

Daesang Mirae Asset Daewoo

Choi Hyun-man, Senior Vice Chairman of Mirae Asset Daewoo

[Asia Economy Reporter Ji-hwan Park] Mirae Asset Daewoo, selected as the '2020 Asia Capital Investment Award' winner, is the largest securities firm in Korea, having become the first in the industry to surpass KRW 9 trillion in equity capital and currently holding KRW 9.5 trillion. In the second quarter of this year, its net profit increased by 184% compared to the previous quarter, reaching KRW 304.1 billion, setting a new record for the largest quarterly profit since the merger last year. This year, it is also expected to be the first in the securities industry to achieve a pre-tax profit of KRW 1 trillion.

In particular, growth in the Wealth Management (WM) division stood out. Due to increased volatility caused by the COVID-19 pandemic and prolonged low interest rates, large-scale funds flowed into the stock market, and the number of new customers also increased significantly. The number of new accounts opened through non-face-to-face channels rose from an average of 35,000 accounts per month last year to over 100,000 accounts per month this year. Direct customer assets also grew substantially, increasing from around KRW 11 trillion last year to KRW 16 trillion currently.

Overseas stock assets, regarded as the next-generation growth engine, surpassed KRW 14 trillion through differentiated overseas stock investment systems and strengthened content. Pension assets exceeded KRW 15 trillion for the first time in the industry. The steady increase in retirement pension reserves is primarily due to returns. As of the end of the third quarter, Mirae Asset Daewoo ranked first among all operators in the 1-year publicized returns for both DC and IRP retirement pension systems. The DC return rate recorded 4.80%, rising 1.96 percentage points from 2.84% in the previous quarter, maintaining the top return rate for six consecutive quarters among the top 10 large operators by reserves. The IRP return rate also recorded 4.04%, up 1.74 percentage points from 2.30% in the previous quarter, securing first place overall for two consecutive quarters. Mirae Asset Daewoo is the only operator across banks, securities, and insurance sectors to have a combined DC and IRP return rate exceeding 4%. It also boasts the largest overseas network with 11 overseas subsidiaries and 3 offices. This year, it became the first in the industry to exceed KRW 100 billion in pre-tax net profit on a half-year basis from its overseas subsidiaries.

It is also leading ESG (Environmental, Social Contribution, Governance) management. Mirae Asset Daewoo was the first securities firm to issue foreign currency ESG bonds and is taking the lead in efforts to establish social responsibility and governance investments. It offers customers eco-friendly financial products aimed at sustainable social environments, such as the Mirae Asset Sustainable ESG Bond Fund, Mirae Asset Global Innovative Companies ESG, Midas Responsible Investment, and Schroder Global Sustainability. In the 2020 ESG evaluation and rating announcement for listed companies by the Korea Corporate Governance Service, it received the highest grade of A among securities firms.

This content was produced with the assistance of AI translation services.