Mirae Asset Global Investments has become the first South Korean financial company in which the overseas operating profit ratio is higher than that of the country.
The company’s overseas assets under management (AUM) grew from 14 trillion won in 2016 to 70 trillion won in the first quarter of this year, when its domestic AUM grew from 95 trillion won to 148 trillion won. won. During this period, the company’s overseas asset ratio increased from 13% to 32%.
In contrast, other large asset management companies in South Korea are still out of balance with the domestic market. Specifically, the top seven overseas assets under management stand at 88 trillion won, with Mirae alone accounting for 80 percent.
The overseas operating profit ratio of Mirae, which has 12 overseas subsidiaries, fell from 11% to 52% in 2017 in the first quarter of this year. From January to March of this year, the 12 posted operating profit of 44.9 billion won while the company’s operating profit in South Korea was 41.5 billion won.
The subsidiaries recorded a net loss of 16.2 billion won in 2016 and 2017. However, it managed to turn the tide by buying Global X in January 2018. The AUM of the US ETF manager tripled to reach $ 30 billion since the repurchase and it is currently in the top 10 in the US ETF market.