Mirae Asset Global Investments Co. made more than half of its operating profit from overseas operations in the first quarter of this year, a rare feat for Korean financial institutions primarily focused on the domestic market.
The asset management unit of South Korean financial services conglomerate Mirae Asset Financial Group achieved operating profit of 44.9 billion won ($ 40.3 million) on overseas operations and 41.5 billion won from domestic operations in the first quarter.
It becomes the first Korean financial institution with higher income from abroad.
The company’s overseas assets under management (AUM) stood at 70 trillion won at the end of March, increasing fivefold in five years. Its AUM in Korea rose 55% to 148 trillion won during the same period.
At the end of March, overseas assets represented 32% of the company’s total assets under management, more than doubling from 2016.
Mirae Asset Global Investments is responsible for 80% of the 88 trillion won of international assets under management by the seven main Korean asset managers Samsung, Mirae Asset, Hanwha, KB, Shinhan, Korea Investment, NH Amundi.
Korean banks account for 6.0% of international assets under management, with just 6.5% of their net profit generated from overseas operations, according to data from the Financial Supervisory Service.
Mirae Asset Global Investments suffered a net loss of 16.2 billion won from overseas operations from 2016 to 2017. But its international operations managed to make a big turnaround after the acquisition of Global X Management Co. , a United States-based exchange-traded fund (ETF). ) issuer, in 2018. Assets under management by Global X Management at the time of acquisition were $ 10 billion. Its AUM has now grown to $ 30 billion, placing the company among the top 10 issuers of ETFs in the United States.
By Moon Ji-woong and Cho Jeehyun
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