Chairman Park Hyeon-joo of Mirae Asset Daewoo Group. (Photo: Mirae Asset Daewoo Group)

Domestic securities firms generated much more profits from their overseas operations in the first half of this year than when they first started two years ago. Overseas sales amounted to $66 million, up 17 times compared to the earnings in the initial year of their overseas operation.

But most of those earnings belong to Mirae Asset Daewoo Securities, with earnings coming to around 75 percent of those made by all 15 domestic securities firms operating overseas, at $49.76 million. Mirae took advantage of its vast overseas network of 12 local subsidiaries and branches.

According to the office of Rep. Yoon Ui-dong of the Bareunmirae Party, the figures released by the Financial Services Commission (FSC) show 15 domestic securities firms with overseas operations generated $66.07 million in earnings in the first half of this year, and by the end of this year, the total earnings would be some 30 times over those made by the entire Korean securities firms overseas.

Mirae Asset Daewoo kicked off its overseas operation in 1991 by launching its local subsidiary in London and in India last year by far being the most aggressive among the Korean securities firms to move overseas for more profits.

The company’s LA subsidiary earned $19.34 million in the first half alone, joining 8 other Mirae Asset Daewoo Securities overseas units generating profits, while 3 had operations in the red in the first half.

Other Korean securities firms that generated profits in the first half included NH Investment and Securities, Korea Investment and Securities, and KB Securities and other large securities firms that were able to boost their first half earnings a lot.

NH Investment and Securities with operations in Hong Kong and Indonesia, generated $6.49 million in earnings in the first half, although its operations in 2016 ended the year in the red with $9.28 million in losses and $5.72 million in the loss column last year. But the 1st half profit amounted to $2.22 million. Shinhan Financial Investment’s 1st Half earnings amounted to $1.85 million while Samsung Securities secured $1.36 million in 1st Half earnings.

Most Korean firms have been able to close their deficits in their overseas operations, but they still have a long way to go to catch up with Mirae Asset Daewoo.

Rep, Yoon Ui-dong of the Bareunmirae Party, said the mid-level securities firms have lots of problems to explore overseas financial market and they need government help as they have to struggle with the risks in their over operations.

Also, they should try to set up their operations in advanced countries overseas rather than the emerging market countries as they have less risks, the legislator said.

Mirae Asset Global Investments is one of the world's largest investment managers in emerging market equities (Investments & Pensions Europe, November 2017).

Mirae Asset's offices are located in Australia, Brazil, Canada, China, Colombia, Hong Kong, India, Korea, Taiwan, the U.K., the United States and Vietnam. Headquartered in Seoul, South Korea, the firm manages approximately US$ 134 billion in assets globally through a diversified platform to offer market-leading franchises in traditional equity and fixed income products, ETFs and alternative strategies, such as real estate, private equity and hedge funds. Mirae Asset Global Investments is focused on providing equity and fixed income investment advisory services to mutual funds, foreign investment trusts, and institutions.

Mirae Asset Daewoo lends its business acumen as a global investment expert to securing successful wealth management and the financially secure retirement of its clients. In the face of Korea’s current economic environment of low growth and an aging society, Mirae Asset Daewoo is actively developing a number of quality assets around the world.