Park Hyun-joo "AI, a Potential Solution That Can Change the Future of Finance"

"If it was judged to be strategically right, we never hesitated to make bold investment decisions considering both organic growth and strategic acquisitions. Making the right decisions when opportunities arise has been the cornerstone of Mirae Asset's development."

Chairman Hyun-Joo Park (center), AIB Dean Tamer Carpusgil (left), AIB Fellow Professor Seung-Ho Park (right) [Photo by Mirae Asset Securities]

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On the 3rd, Park Hyun-joo, Chairman of Mirae Asset Group, received the ‘International CEO of the Year’ award for the first time as an Asian financier at the '2024 Academy of International Business (AIB)' held at Lotte Hotel in Sogong-dong, Jung-gu, Seoul. AIB is a globally prestigious academic society in the field of international business headquartered in Michigan, USA, currently with over 3,400 members from more than 90 countries worldwide. It conducts research, education, policy formulation related to international business, as well as academic exchanges and seminars between countries. The ‘AIB International CEO of the Year’ award, which Chairman Park received, has been given since 1982. Past recipients include industry icons representing their eras such as Akio Morita, Chairman of Sony Group in 1983, Peter Sutherland, Chairman of Goldman Sachs in 1998, and Muhtar Kent, Chairman of Coca-Cola in 2013. The only Korean corporate executive to have received this award before was the late Choi Jong-hyun, former Chairman of SK Group, in 1995. Chairman Park is the second Korean and the first Asian financier to receive this honor.

On that day, Chairman Park introduced the establishment and development process of Mirae Asset in his keynote speech. He recalled, "After encountering finance lectures at university, I became interested in actually participating in the stock market. I started investing in stocks with a small allowance and became deeply fascinated by it."

Regarding founding a financial company, Chairman Park explained, "I had an overflowing passion for finance and confidence that I could positively influence both customers and myself, which fueled my desire to start a business in this field. I first established a 10-year plan to achieve my goals as a financial entrepreneur and decided to gain experience as an employee at a domestic securities firm." Subsequently, he became the youngest branch manager at a domestic securities firm at age 31 and then a head of headquarters. About 10 years later, he founded his own company. He said, "At that time in Korea, it was extremely rare and difficult for an ordinary office worker to establish a personal company, let alone in the financial industry." The path after founding was not always smooth. The 1997 International Monetary Fund (IMF) foreign exchange crisis struck the Korean market just as Chairman Park was starting Mirae Asset’s first business division, venture capital. He explained, "I was confident that the Korean economy would recover, and I tried to turn the crisis into a greater opportunity by maintaining a contrarian perspective as an investor," describing how he overcame the crisis.

He turned his eyes to the global market, saying, "For a long time, I pondered how diversification strategies in the fund industry could benefit investors. At that time, Korea’s contribution to the world’s Gross Domestic Product (GDP) was less than 1%, so providing an investment portfolio focused only on Korea was not the best strategy for our clients. Observing global businesses led by adventurous Korean entrepreneurs, I was captivated by the thought, ‘Why can’t finance do the same?’ and subsequently introduced fund strategies covering Asia, China, and India." He added, "This strategy was a decisive turning point that evolved investment from being solely focused on the Korean market to a global perspective."

He then greatly expanded business areas and strengthened investment capabilities through 16 successful acquisitions. As a result, Mirae Asset Group has built a global network spanning 19 countries and grown into a meaningful global player managing over KRW 834 trillion based on diverse investment strategies. Mirae Asset’s Exchange-Traded Fund (ETF) platform has secured a leading position in the global market, fueled by successive successful mergers and acquisitions (M&A) and rapid growth in the United States. Currently, its asset size exceeds KRW 173 trillion, ranking 12th worldwide in ETF assets. Recently, it has continued successful global expansion by acquiring India’s Sharekhan local securities firm, UK ETF liquidity provider GHCO, and Australia’s AI robo-advisor Stockspot.

Chairman Park cited strategic thinking ability and adaptability to foresee the future as conditions defining a successful entrepreneur. He said, "There may be many conditions to be defined as a successful entrepreneur, but I believe strategic thinking ability and adaptability to foresee the future are the most important factors. Also, honest and passionate leadership is essential to fostering an innovative corporate culture."

Regarding risk management, he emphasized ESG (Environmental, Social, Governance). Chairman Park explained, "I believe ESG is the starting point of risk management and can improve the sustainability of all companies. Since the company’s founding, we have been dedicated to integrating ESG principles as the cornerstone of decision-making processes and efficient risk management systems." He added, "The social aspect and sound governance have served as core values guiding our organization and individuals. We have continuously strived for sustainable development implementation and practice, which will ultimately positively impact corporate culture."

He stressed that financial companies should be cautious about reckless expansion and focus on maximizing investment expertise. Chairman Park said, "Companies that uphold sound and robust ESG principles resist the temptation to prioritize short-term profits and focus on long-term value creation. I believe only financial companies that adhere to these fundamental principles can rightly lead our society. We must concentrate on maximizing investment expertise, which is the core competency to provide the best results to customers, and everyone should be wary of reckless expansion."

Chairman Park also mentioned the importance of AI for future growth. "We must continuously seek new ways to provide greater value to customers and society, and in this regard, AI is emerging as a potential solution that can transform the future of finance," he said. "Our goal is to equip the entire organization with an intelligent AI platform while using this powerful technology transparently and responsibly across all operations." Mirae Asset established Wealthspot in the United States this year and acquired Stockspot, Australia’s leading robo-advisor, last year, laying the foundation for global AI expansion. Chairman Park said, "This is just the starting point of our next major business transformation aimed at providing better customer profitability at lower fees."

Finally, Chairman Park emphasized, "Success is not a destination but a process," and added, "The future belongs to those who can continuously deliver responsible and sustainable entrepreneurship."

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