Mirae Asset Securities reported a record quarterly net income of 1.91 trillion won ($1.4 billion) in the second quarter, outpacing three of South Korea's four largest banking groups and trailing only KB Financial, the country's biggest financial institution. The result underscores a broader shift in Korea's financial landscape, where securities firms — long overshadowed by the dominant banking sector — are gaining ground as household wealth migrates from traditional bank deposits into capital market products.

The brokerage's earnings exceeded Shinhan Financial Group's 1.82 trillion won, as well as the profits of both Hana Financial Group and Woori Financial Group. Shinhan, KB, Hana, and Woori collectively make up Korea's four dominant banking groups. Mirae Asset Securities also became the first Korean brokerage to record net income above 1 trillion won for two consecutive quarters, a milestone that highlights the widening competitiveness of non-bank financial institutions in a market where banks have historically captured the lion's share of profitability.

The company said Wednesday that consolidated net income surged 90 percent from the previous quarter, while pretax profit climbed 86 percent to 2.53 trillion won. The quarterly result came within roughly 80 billion won of KB Financial's 1.99 trillion won, significantly narrowing the gap with Korea's largest financial group.

For the first half of the year, Mirae Asset Securities' net income soared 338 percent on-year to 2.91 trillion won, while pretax profit jumped 349 percent to 3.89 trillion won. That ranked the brokerage third among Korea's major financial groups by first-half net income, behind KB Financial's 3.88 trillion won and Shinhan Financial's 3.44 trillion won, and ahead of Hana Financial's 2.42 trillion won and Woori Financial's 1.61 trillion won. Shareholders' equity stood at 16.2 trillion won at the end of June, with annualized return on equity reaching 39.5 percent for the first half.

Investment Gains and Overseas Growth Drive Record Performance

Investment gains were a major driver of the record earnings. Trading and other financial income more than doubled from the previous quarter to 836.9 billion won. Overseas operations contributed 609.1 billion won in pretax profit, accounting for about 24 percent of the consolidated total, up 6 percentage points from the first quarter. The United States generated 37 percent of overseas pretax profit, followed by Hong Kong at 35 percent, London at 18 percent, and India at 5 percent.

Domestic operations also strengthened, supported by robust trading activity and growing client assets. Brokerage fee income rose 36 percent from the previous quarter to 625.6 billion won. Fees from financial product sales reached a record 131 billion won, up from 112.5 billion won in the first quarter, while investment banking fee income increased 65 percent to 42.8 billion won.

Client assets in Korea and overseas grew by 124 trillion won during the quarter to 784 trillion won. Pension assets exceeded 80 trillion won at the end of June, with retirement pension reserves growing more than 60 percent over the past year — approximately 2.5 times the market average, according to the company.

Global Expansion and Digital Asset Initiatives

Mirae Asset Securities is expanding its global wealth management business. In June, the company launched MAPS, a platform covering both traditional and digital assets, in Hong Kong, with plans to introduce the service in additional markets including the United States and Singapore. The brokerage is also developing a platform that would enable overseas investors to invest directly in Korean stocks and Mirae Asset exchange-traded funds.

In Korea, Mirae Asset is preparing for the institutionalization of security token offerings and plans to expand into real-world asset tokenization and security tokens through Digital X, formerly known as Korbit. These initiatives align with the Korean government's efforts to establish a regulatory framework for digital assets, including the implementation of the Virtual Asset User Protection Act in 2023 and ongoing discussions around security token legislation.

"The company's continued growth and corporate value have always gone hand in hand with the growth of our clients' assets," a Mirae Asset Securities official said. "We will continue to strengthen long-term trust with clients and develop into a global investment platform that contributes to their successful asset management."