Mirae Asset Daewoo becomes first Korean brokerage raking in nearly $1 bn OP

Mirae Asset Daewoo Co. became the first securities firm in South Korea that posted more than 1 trillion won ($869.7 million) in operating profit in 2020 after its businesses across the board generated handsome profit despite the Covid-19 pandemic.

The company announced Thursday that its operating profit on a consolidated basis last year reached 1.1 trillion won, up 52 percent from the previous year. This is the first time for a Korean securities firm to report more than 1 trillion won in operating profit.

Its pre-tax profit grew 26 percent on year to 1.13 trillion won and net income up 23 percent to 818.3 billion won.

“We achieved strong performance across the board including the overseas business,” it said.

Thanks to its strong performance in 2020 despite pending challenges from the pandemic, the company decided to enhance shareholder returns.

The company said in a separate filing that it will buy back 103.3 billion won worth treasury shares. It will purchase 10.5 million common shares from Friday to April 28, about 2.1 percent of its outstanding shares.

Mirae Asset Daewoo bought back 50 million shares worth 372.7 billion won during the four rounds of buyback program last year and canceled 13 million shares.

The aggressive shareholder return policy has been drawing foreign investors. Offshore investors net purchased 50.9 billion won worth shares of the company since the beginning of the year, compared with a 57.6 billion won worth net sale by institutional investors.

Mirae Asset Daewoo shares gained 3.39 percent from Jan.1-28. They finished Friday 2.66 percent lower from the previous session at 9,500 won.

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