Mirae Asset Daewoo excels in overseas earnings

By Kim Bo-eun

Mirae Asset Daewoo showed a commanding lead in Korean securities firms' overseas earnings in 2018.

According to data from the company, the net profit of its 12 overseas subsidiaries amounted to 89.42 billion ($78.41 million) won in 2018, up from 38.28 billion won in 2017.

The securities firm attributed the surge to notable performance in countries such as Indonesia and Vietnam.

The net profit from the Indonesia operation grew from 5.8 billion won to 9.9 billion won, and the operation in Vietnam from 5.5 billion won to 9.7 billion won.

"Mirae Asset Daewoo's subsidiary in Indonesia currently ranks third in terms of market share," a company spokesman said.

"In Vietnam, we have many branches and they are expected to create synergy with the group's asset management and life insurance units there," he said.

Mirae Asset has the largest number of overseas subsidiaries among Korean securities companies.

Among the top five securities firms ― Mirae Asset Daewoo, NH Investment and Securities, Korea Investment and Securities, KB Securities and Samsung Securities ― Samsung showed the poorest performance, with its three overseas subsidiaries recording 2.73 billion won in net profits last year. This was down from 4.81 billion won in 2017.

The fall in profits was due to the worsening performance of its New York subsidiary. Its net profit plunged from 3.1 billion won in 2017 to 541 million won in 2018.

NH Investment and Securities' net profit in 2018 grew to 16.51 billion won, from 10.92 billion won the previous year.

KB Securities, meanwhile, switched to a surplus of 6.72 billion won in 2018, from a net loss of 14.75 billion won a year earlier.

In December 2018, 14 Korean securities firms had a presence in 13 countries. They were operating 47 subsidiaries and 15 offices.

The largest number were based in Asia ― including countries such as China, Hong Kong, Indonesia and Vietnam.

The overseas subsidiaries posted a combined net profit of $122.8 million (135.1 billion won) in 2018, which was a 155.7 percent increase from a year earlier.

The net profits have continued to grow from $4.5 million in 2016, to $48 million in 2017.

Net profits from subsidiaries based in Asia accounted for 82 percent of the total net profit for 2018.

Their handsome performance came as they have diversified their sources of revenue through brokerage and investment banking businesses.

The presence of securities firms in ASEAN member states and India is growing as part of the government's increasing focus on the region.

They are set to further expand their businesses, through recapitalization and acquisition of local financial companies.