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.”