Mirae Asset continues to blaze trail in global investments
기자명 Tim Kim Published 2025.02.03 15:29
Korean financial giant vows to keep forging ahead in overseas markets
Pictured is Four Seasons Hotel Sydney, which is owned by South Korean financial conglomerate Mirae Asset Group. [Photo courtesy of Mirae Asset Group]
South Korea’s Mirae Asset Group noted on Feb. 3 that the financial conglomerate would continue to blaze a trail in global investments down the road. The Seoul-based outfit vows to keep finding alternative investment opportunities as part of efforts to become a global investment bank like Goldman Sachs and JP Morgan. When it comes to alternative investments, Mirae Asset has been second to none among Korean competitors and is regarded as one of the top Asian players. Now, the entity hopes to forge a path to become a world-class leader. For instance, Mirae Asset has taken over such prestigious hotels as the Four Seasons and Fairmont.
In addition, the corporation has made strategic investments in many innovative firms, including SpaceX and X, which is formerly known as Twitter.
Most recently, Mirae Asset launched Mirae Asset Sharekhan in India, with a bold vision to become one of the country’s top five brokerage houses within five years. The growth of the group is underpinned by its two representative subsidiaries of Mirae Asset Securities and Mirae Asset Global Investments.
The former is a top-tier brokerage in the South Korean market with the country’s largest equity capital. The latter manages the nation’s biggest Nasdaq 100 ETF under the TIGER brand.
Mirae Asset founding Chairman Park Hyeon-joo now serves as the group’s Global Strategy Officer. [Photo below courtesy of Mirae Asset Group]
Visionary leader
Observers point out that the exponential growth of Mirae Asset Group has been boosted by its visionary founding Chairman Park Hyeon-joo, who also works as the entity’s Global Strategy Officer. Under the stewardship of Chairman Park, Mirae Asset has been proactive in diversifying portfolios, mitigating market volatility, and hedging against inflation, which are the features of global top IBs. The results have been impressive.
For instance, the Four Seasons Sydney, purchased in Sept. 2013, has appreciated by 79.3 percent and is now valued at about AUD 610 million ($375 million) as of Sept. 2024.
Similarly, the Fairmont Orchid in Hawaii, acquired in May 2015, has increased in value by 68.9 percent, reaching an estimated $ 380 million.
Given the complexities of valuing alternative assets compared to traditional stocks and bonds, Mirae Asset claims that the firm’s successful investments in this sector amply demonstrate its expertise and strategic acumen as a global IB.
Since 2022, the company has invested more than 800 billion won ($550 million) in such high-tech firms as SpaceX, X, and AI startup xAI.
As of Nov. 2023, the valuations of these investments had increased by around 1.5 times, with expectations for further growth, according to Mirae Asset.
M&A strategy for global expansion
Watchers pick Mirae Asset’s aggressive approach to mergers and acquisitions (M&A) as a key driver of its global competitiveness. Chairman Park is famous for having long championed the idea that Korean firms should create national wealth by expanding overseas and entering global markets through bold M&A activities. Currently serving as the Global Strategy Officer, he continues to oversee significant M&As and equity investments.
Driven by his strategic vision and commitment to expansion, Mirae Asset has made several crucial acquisitions over the past several years to strengthen its global presence.
In 2018, the company gobbled up Global X, a leading U.S.-based thematic ETF provider. This was followed by the acquisition of Global X Australia in 2022 and Australian robo-advisor Stockspot in 2023. Plus, Mirae Asset acquired GHCO, a European ETF market-making specialist. In India, the corporation completed the purchase of Sharekhan late last year to launch Mirae Asset Sharekahn in the potential-loaded South Asian country. With this acquisition, Mirae Asset expects that its global business will generate an additional 100 billion won ($68 million) in annual profit.
By allocating 40 percent of its equity capital to overseas operations, Mirae Asset projects its global business to chalk up 500 billion won ($340 million) in pre-tax profits beginning in 2027.
Over the past 21 years, Mirae Asset has successfully expanded its international footprint, now operating 47 overseas subsidiaries and offices across 19 regions. “With 21 trillion won ($14 billion) in equity capital and 840 trillion won ($570 billion) in global client assets under management, Mirae Asset has established itself as Asia’s premier investment bank,” a Mirae Asset official said.
“Looking ahead, we are preparing to ascend to the ranks of the world’s top-tier investment banks, continuing our trajectory of innovation, strategic expansion, and long-term value creation.”
Mirae Asset Group strives to establish itself as global investment bank powerhouse
By Lee Yeon-woo Posted : 2025-01-22 16:03
Mirae Asset Group is striving to become a global investment powerhouse under the leadership of its founder, Chairman Park Hyeon-joo, through active investments in global alternative assets and innovative technologies.
Since 2022, the group has invested over 80 billion won ($55.6 million) in SpaceX, X (formerly Twitter) and xAI. These investments have reportedly grown by approximately 1.5 times in market value and are expected to continue increasing. The group has also achieved significant returns from investments in global alternative assets, such as luxury hotels in major tourist destinations. For instance, Four Seasons Hotel Sydney was valued at approximately 610 million Australian dollars ($381.8 million) as of September 2024, marking a 79.3 percent increase since its initial investment in 2013. Similarly, Fairmont Orchid in Hawaii has reached a valuation of 380 million dollars, reflecting a 68.9 percent increase since 2015. Mirae Asset Group is also gaining a competitive edge through bold mergers and acquisitions (M&A). "Korean companies should focus on creating national wealth through overseas operations and actively pursue M&As to establish a strong presence in the global market," Park said.
Under Park’s leadership as global strategy officer, the group has expanded overseas, acquiring key entities such as Global X, a leading U.S. thematic exchange-traded funds (ETFs) provider, Australian asset management firm Global X Australia, Australian robo-advisory company Stockspot and GHCO, a European ETF market-making specialist. As a result, Mirae Asset Group has built the largest global network among Korean financial firms, operating 47 overseas subsidiaries and offices across 19 regions over 21 years of international expansion. "With 21 trillion won in equity capital and 840 trillion won in global client assets, we aim to evolve from Asia’s leading investment bank into a top-tier global investment bank," a Mirae Asset Group official said.
Mirae Asset Securities Completes Acquisition of Indian Brokerage Firm Sharekhan
Mirae Asset Securities has completed its acquisition of Sharekhan, a top 10 local brokerage firm in India, for 586.6 billion won, the company announced on Nov. 27. This strategic move marks a significant milestone for Mirae Asset Securities, which first entered the Indian market in 2018, and aims to capitalize on the burgeoning opportunities in the Indian financial sector.
Established in 2000, Sharekhan has grown to become one of India's largest retail brokerage firms, boasting approximately 3,500 employees and a comprehensive network of branches across the country. The acquisition process began with the signing of a stock purchase agreement (SPA) worth $480 million in December last year. Following a year of coordination and obtaining necessary approvals from local financial authorities, the deal has now been finalized.
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Mirae Asset Management Expands Global Footprint with 27 Overseas Subsidiaries
Mirae Asset Management has significantly expanded its global footprint, as revealed in its 2024 semi-annual report submitted to the Financial Supervisory Service's electronic disclosure system (DART) on August 19. The report highlights that the company now operates 27 overseas subsidiaries in 10 countries, marking an 80% increase in its overseas presence over the past five years.
Mirae Asset Management first ventured into the global market in December 2003 by establishing 'Mirae Asset Management Hong Kong,' becoming the first domestic asset management company to do so. This initial step set the stage for a series of strategic expansions and acquisitions that have solidified its position as a global player in the asset management industry.
In February 2005, the company launched the “Mirae Asset Asia Pacific Star Equity Fund,” the first overseas fund directly managed by a domestic asset management company's overseas subsidiary. This move was followed by the acquisition of Canada's “Horizons ETFs” in 2011, marking the beginning of Mirae Asset's journey to becoming a global ETF management company.
The company's global expansion continued with the acquisition of the United States' “Global X” in 2018 and Australia's “ETF Securities” in 2022. Notably, the acquisition of “ETF Securities” was the first instance where a domestic asset management company acquired an overseas ETF manager with profits earned overseas. Last year, Mirae Asset further diversified its portfolio by acquiring “Stockspot,” an Australian robo-advisor specialist, becoming the first domestic financial group to acquire an overseas robo-advisor specialist.
As of the end of June this year, Mirae Asset Management manages 585 ETFs in 16 countries and regions, including the United States, Vietnam, Brazil, the United Arab Emirates (UAE), the United Kingdom, India, Japan, China, Canada, Colombia, Australia, and Hong Kong. The company's total assets under management (AUM) at the end of the first half of this year stood at 200.9343 trillion won (approximately $148.8 billion), with overseas investment AUM reaching 83.0797 trillion won, surpassing Samsung Asset Management's 69.6577 trillion won.
India hosts the most Mirae Asset Management locations with six subsidiaries, followed by Australia with five, and the United States with four. In comparison, Mirae Asset's overseas bases are 3.4 times more than Samsung Asset Management's and 5.4 times more than Hanwha Asset Management's.
A significant milestone in Mirae Asset's journey was celebrated last June when a congratulatory message for the listing of the “TIGER NASDAQ 100 +15% Premium Ultra-Short ETF” was displayed on the Nasdaq Tower billboard in New York, USA. This event underscored the company's growing influence and recognition in the global financial markets.
Korea’s Mirae Asset to open AI business unit in New York
WealthSpot in the US, Stockspot in Australia, Mirae Asset’s Indian unit to accelerate the group’s AI business expansion worldwide
Mirae Asset Group, the pioneer in South Korea’s mutual fund industry, plans to set up an artificial intelligence business unit in New York as the financial conglomerate aims to expand global investment services with robo-advisors for future growth.
“WealthSpot, Mirae Asset Group’s AI unit, is set to be opened in New York City,” the group founder and Global Strategy Officer Park Hyeon Joo told The Korea Economic Daily in an interview on Tuesday. “We will dispatch core Mirae Asset executives such as Kim Yeon Chu, head of derivatives, to lay the foundation for the business.”
Kim, who is touted as one of the group’s future leaders along with Kim Namki, head of Mirae Asset Global Investments Co.’s exchange-traded fund (ETF) business, has been appointed to head up WealthSpot.
The New York unit is poised to oversee the group’s AI business and handle the robo-advisor sector, global investment asset allocation and ETF development.
Robo-advisors are digital platforms that provide automated, algorithmic investment services with minimal human supervision.
Mirae Asset Securities' Overseas Stock Holdings Increase by Over 10 Trillion Won This Year
Mirae Asset Securities’ balance of foreign stocks has increased by approximately 10 trillion won ($7.32 billion) this year alone. Mirae Asset Securities plans to generate more than 50 percent of its total profits from overseas in the medium to long term.
According to Mirae Asset Securities on August 1, the balance of foreign stocks stood at 33.8 trillion won as of July 11. This figure represents an increase of 10.2 trillion won compared to the end of last year.
Mirae Asset Securities' balance of foreign stocks started at 1 trillion won in January 2017, surpassed 20 trillion won in April 2021, and has continued to grow steadily, exceeding 30 trillion won in June of this year. In 2024 alone, the foreign stock balance increased by 10.2 trillion won, while clients' valuation gains on these foreign stocks rose by approximately 8.7 trillion won during the same period.
Currently, Mirae Asset Securities operates 12 local subsidiaries and three offices abroad, giving it the largest overseas network among the 14 domestic securities firms that have successfully expanded internationally. The company's overseas subsidiaries have a combined capital of about 4.5 trillion won. In 2020, Mirae Asset Securities became the first in the industry to achieve annual pre-tax profits of 200 billion won from overseas operations. In 2021, it set a new record with pre-tax profits of 243.2 billion won, marking two consecutive years of exceeding 200 billion won in pre-tax profits from international ventures.
In particular, Mirae Asset Securities has been aggressively expanding into the Indian market, which has emerged as a “post-China” investment hub, by acquiring a local securities firm last year. The Indian subsidiary of Mirae Asset Securities has surpassed 1.6 million retail customer accounts. Following the launch of the online trading platform “m.Stock” in April 2022, it rose to 9th place among local online brokers and 16th overall within 26 months, establishing itself as the fastest-growing securities firm in India.
The Indian subsidiary handles an average of 2.2 million transactions daily. As of the end of June, it managed approximately 1.06 trillion won in total customer assets under management (AUM) and held around 267.8 billion won in margin trading facility (MTF).
Global X ETFs Surpasses $50 Billion in Assets Under Management in the U.S.
NEW YORK, July 10, 2024 /PRNewswire/ -- Global X ETFs, the New York-based provider of exchange-traded funds (ETFs) today announced that the firm exceeded $50 billion in assets under management (AUM) in the U.S.[i] This important milestone reflects the firm's rapid ascent as a leading global ETF provider, having grown from $10 billion in assets under management when the firm was acquired by Mirae Asset Global Investments in July 2018. [ii] As of July 8, the AUM has increased by over $6 billion since the beginning of the year, among its strongest performances in Global X's 15 year history. [iii]
Since Global X launched its first ETF in 2009, the firm has grown and established its expertise in Thematic Growth and Income strategies, reflecting investor interest in the strategies. Global X has expanded its diverse product lineup to feature more than 90 ETFs across several categories, including International, Core, and Commodity funds. The product offerings include themes such as artificial intelligence and evolving infrastructure needs, as well as strategies which seek to generate income including through covered call writing and access to high dividend paying equities. Global X now boasts fourteen ETFs with over $1 billion in assets [iv], spanning across Thematic Growth, Income, and Commodities strategies.[v]
"Global X has developed from a challenger to an industry leader, driven by both our highly innovative product pipeline and through the backing of Mirae Asset, which recognizes Global X as its flagship ETF brand," said Ryan O'Connor, CEO of Global X ETFs. "We have now entered another era of innovation-driven growth, and I am honored to play a leading role in this exciting and transformative period for the business."
CEO Ryan O'Connor continued: "We have an incredible team at Global X with a deep bench of talent and industry knowledge, and this team is building out the infrastructure to take our expansion to the next level—to $100 billion in assets and beyond. In an effort to achieve this growth, we remain laser-focused on delivering for our clients in new, innovative ways to help them reach their investment objectives."
"When I joined Global X as a Research Analyst in 2010, the firm was a new entrant in the ETF industry with $1 billion in assets across eleven funds," said Alex Ashby, Chief Operating Officer at Global X ETFs. "Fast forward to today, we have now eclipsed $50 billion in assets across 93 funds. It has been incredibly rewarding to experience our team's growth to new heights, while prioritizing innovation and collaboration."
About Global X ETFs
Global X ETFs was founded in 2008. For more than fifteen years, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features a wide range of ETF strategies and over $50 billion in assets under management.[vi] While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer both Core and Commodity funds to suit a wide range of investment objectives. Explore our ETFs, research and insights, and more at www.globalxetfs.com.
Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $600 billion in assets under management across 19 countries worldwide.[vii] Mirae Asset has an extensive global ETF platform ranging across the US, Australia, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $119bn in assets under management.[viii]
Global X Launches ETF to Invest in Disruptive Materials
Thematic ETF provider Global X ETFs announced the launch of the Global X Disruptive Materials ETF (DMAT). Formerly known as the Global X Advanced Materials ETF, the fund trades on the Nasdaq and offers investors targeted exposure to global companies that drive long-term, paradigm-shifting themes.
DMAT seeks to invest in companies that produce metals and other raw or composite materials that have been identified as essential to disruptive technologies as identified by the underlying index, the Solactive Disruptive Materials Index. The fund will join Global X’s suite of 34 Thematic Growth ETFs.
From alternative energy sources such as solar panels and wind turbines to evolving technology like lithium batteries and electric vehicles, disruption is rapidly changing how our world looks. These advancements can help slow climate change, improve productivity, or connect millions of people around the world.
But behind these complex technologies are many essential raw inputs like certain metals, minerals, and materials, including carbon fiber, cobalt, copper, graphene & graphite, lithium, manganese, nickel, platinum & palladium, rare earth elements, and zinc — collectively known as “disruptive materials.” Just as fossil fuels were critical commodities for the 20th century economy, disruptive materials could be the essential inputs for the 21st century economy.
Case Study: Mirae Asset Global Investments Investor Climate Action Plan
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Mirae Asset Global Investments (Mirae Asset) was founded in Asia and now operates worldwide across 12 markets, where it takes a collaborative approach in managing a fully diversified investment platform. Mirae Asset invests in multiple asset classes through exchange-traded funds (“ETF”), mutual funds and alternatives and currently invest over US$218bn on behalf of clients, giving it the scale and experience to identify opportunities in a changing world (AUM as of September 2021).
Decarbonisation of global economies is no longer old news; this low carbon trajectory needs to accelerate in order to keep global warming to 1.5C as re-emphasised at the latest COP26. The financial implications of climate change - those that arise from risks due to extreme climate events or stranded assets as well as those that arise from low carbon opportunities – need to be considered as part of investment decisions. Mirae Asset is a supporter of the Task Force for Climate-related Financial Disclosures (TCFD) and also participates in collaborative climate engagement through Climate Action 100+.