Dear respected shareholders and customers,
First of all, I would like to extend my sincerest gratitude and appreciation to the shareholders who have extended endless support to Mirae Asset Securities Co., Ltd.
It may be noted that last year, our 10th year in business, was one of the toughest business years we have endured due to the worldwide financial crisis. In addition, due to the rapid depreciation of the Korean won, the sharp downward spiral of share prices, the real-estate market stagnation, and the credit risks, all economic activities slowed down and our business as a whole had to cope with our very own survival. The economy is appearing to regain normalcy due to the recent implementation of various domestic economic revitalization policies and other programs worldwide. However, forecasts indicate that it may take more time and more effort for the economy to recover to previous levels.
Despite these difficulties, the company has been exerting every effort to achieve those business objectives as promised at last year’s shareholders’ meeting. As a result, in our retirement pension funds, the cumulative AUM reached 196 billion, a 170% increase compared to the previous fiscal year. In terms of wealth management, the company recorded 37.6 trillion in customer trusted assets, the leading position in the industry. As for brokerage operations, the company’s market share climbed to 8.5%, recording a historical high. These clearly show that the company has realized balanced growth during the last fiscal year.
Regarding overseas expansion, the company set up subsidiaries in Shanghai, the US, and the UK during our 10th year, following the establishment of a Vietnam subsidiary in our 9th year, realizing our mission of establishing a worldwide network comprising the Americas, Europe and Asia.
In addition, measures have been taken to reform revenue models as well as investor protection in the wake of the implementation of the CAPITAL MARKET AND FINANCIAL INVESTMENT BUSINESS ACT that will significantly transform the domestic financial market.
In this regard, the company already has set up an advanced risk management system by restructuring the organization, and developing an operating risk system, referred to as the New Operating Process, for a program being designed to enhance investor protection. This will be the industry’s first program aimed at strengthening the culture of investor protection.
As a result, the company obtained top grades among financial institutions comprised of banks and investment banks in the evaluation of fund products sales through “mystery shopping” as executed by the Financial Supervisory Service.
In addition, in line with the new act, the company has completed all business approvals and registrations for those currently being set up by the company while deciding to participate in the futures and cash settlement businesses to create various synergistic effects along existing business lines.
Our respected shareholders and customers, I would like to take this opportunity to assure you that we will do our utmost to implement the aforementioned strategies in our 11th year, and I would like to point out the following objectives:
First, the company shall put strong emphasis on spotting and developing the next generation of growth engines by promoting all areas of the pension fund business and strengthening the profitability of overseas subsidiaries. Through this, we can ensure that the company is firmly positioned as Asia’s top investment consulting company, thereby leading our company in our mission to become a global financial investment bank.
Second, based on the existing infrastructure, including the company’s specialized knowhow in the field of investment consulting as well as wealth management systems, we shall activate VIP marketing. In addition, the company shall focus on attracting new areas for customers to realize profits through the utilization of the online environment.
Third, the company shall set up strong organizational systems fully adaptable to outside economic environment changes or impacts, by strengthening risk management based on the establishment of a compliance culture. Concurrent to this, we will be distributing the company’s resources strategically to attain growth in priority businesses and build the foundation for future growth.
It may be noted that in our firm’s history, we have taken lessons from the economic environment to create various fresh paradigms in order to maintain our strong leadership position in the industry. With this in mind, we believe that the current economic crisis may provide us with another opportunity to stay ahead of the industry through wise and prudent preparation. We can assure our shareholders that Mirae Asset Securities Co., Ltd., shall take yet another leap forward, as we have done in the past, by quickly adapting to the current perils of the global economic environment and turning these adaptations into opportunities.
I would like to again thank you for all your support over the last ten years and confidently assure our shareholders that all matters are to be implemented as promised in a fully transparent manner to achieve a better outcome ahead of the upcoming shareholders’ meeting. The management and staff will do their best to reach all our outlined objectives.
May 29, 2009
Hyeon Man Choi
CEO & Vice - Chairman
Mirae Asset Securities
