Mirae Asset Global Investments gains traction for robust business overseas

[Photo provided by Mirae Asset]

Mirae Asset Global Investments Co., a leading financial company in South Korea, has been gaining attention for its global business expansion amid growing calls for global competitiveness of “K-Finance.”

At the end of April, Mirae Asset Global Investments’ domestic and international assets under management (AUM) totaled 275 trillion won ($213 billion). Of this, around 40 percent or 112 trillion won is being managed overseas. Among Korean asset management companies, Mirae Asset is the only one actively engaging in such a robust business abroad.

The domestic financial sector is generally considered challenging for international expansion compared with other industries. When Mirae Asset made its first entry into the global market as a Korean asset management company in 2003, there were negative market reactions, citing difficulties in competing with renowned companies like Goldman Sachs and Merrill Lynch. However, Mirae Asset founder, Park Hyeon Joo, who serves as Mirae Asset Group’s Global Strategy Officer (GSO), did not lose sight of the long-term vision for the global market.

“Since we first challenged the overseas market as the first Korean asset management company in 2003, we have made continuous efforts to become a global financial company representing South Korea for the past 20 years,” said Mirae Asset Global Investments Chief Executive Officer Lee Byeong-seong. “We will continue to develop further to discover blue-chip assets around the world and provide competitive financial products.”

Over the past 20 years, Mirae Asset Global Investments has grown into a leading global financial company in South Korea, managing 275 trillion won in 14 markets, including the U.S., Vietnam, Brazil, the UAE, the U.K., India, Japan, China, Canada, Colombia, Australia, Hong Kong and Luxembourg.

Global executives and employees of Mirae Asset Global Investments share ETF business status at ETF Rally 2023. [Photo provided by Mirae Asset]

Mirae Asset’s global business is driven by exchange-traded funds (ETFs) actively operating in various regions worldwide, such as the U.S., Canada and Hong Kong. Mirae Asset manages over 500 global ETFs, with total net assets reaching 121 trillion won at the end of April, surpassing the entire domestic ETF market size of 95 trillion won.

Since introducing the TIGER ETF in 2006, which tracks the Nasdaq 100 Index, Mirae Asset has expanded the range of choices for investors by offering a variety of ETFs. The company is taking the lead in the development of innovative growth theme ETFs, such as the “Chat GPT” ETF, while building a lineup of monthly dividend ETFs and ETFs utilizing strip bonds, making significant contributions to the development of the ETF market in South Korea.

In the international market, Mirae Asset has made a breakthrough as a global ETF manager through strategic acquisitions. Starting with the acquisition of the Canadian ETF manager Horizons ETFs in 2011, it continued with the acquisitions of Global X in the U.S. in 2018 and ETF Securities in Australia in 2022. The acquisition of ETF Securities, which marked the first case of a Korean asset management company acquiring a foreign ETF manager using profits earned overseas, has solidified Mirae Asset’s position as a financial group that expands its global network.

Mirae Asset Global Investments has recently shifted its focus from market expansion to enhancing the brand value of its global ETFs. In May, the company held “ETF Rally 2023” in South Korea, providing an opportunity for Mirae Asset’s global ETF employees to discuss ways to create synergies in global business.

Based on its global business, Mirae Asset Management has achieved the industry’s first equity capital of 3 trillion won. Net income on a consolidated basis reached 106.1 billion won in the first quarter, being the only Korean asset management company to exceed 100 billion won in net profit. This result reflects increased equity method contributions from its strong global business. Net income is expected to grow further in the future as the capabilities of Mirae Asset are increasingly recognized in global financial markets.