Mirae Asset Securities is entering the Japanese market by acquiring mid-sized brokerage Sanko Securities. The company plans to start with proprietary trading and ultimately conduct retail business in Japan. The decision to acquire Sanko Securities through a U.S. intermediate holding company is interpreted as a strategy to broaden its global operations, including selling U.S. stocks and global financial products in the Japanese market.
The brokerage held a board meeting on Thursday and resolved to sign a Share Purchase Agreement (SPA) to acquire 100% of the shares in Sanko Securities, under the Okasan Securities Group in Japan, through its U.S. subsidiary Mirae Asset Securities Holdings (US Holdings).
For this transaction, Mirae Asset Securities will invest approximately 100.6 billion won (approximately 12 billion yen) into US Holdings. Part of the investment will be used as the acquisition price for Sanko Securities shares. The remainder will be injected into Sanko Securities to serve as funding for business expansion in Japan.
Sanko Securities is a brokerage specialized in proprietary trading. Through this acquisition, Mirae Asset Securities will enter the Japanese stock proprietary trading business. Proprietary trading is a business where a brokerage buys and sells stocks and bonds using its own funds rather than client money to generate profits.
Ultimately, the company plans to pursue retail business in Japan. Although Sanko Securities discontinued its retail business last May to focus on proprietary trading, it holds a "Class 1 Financial Instruments Dealer" license that permits stock and bond trading as well as underwriting. By acquiring Sanko Securities, Mirae Asset Securities has secured this license, enabling it to quickly establish a foundation for its operations in Japan.
Mirae Asset Securities' acquisition of Sanko Securities through US Holdings is interpreted as part of a strategy to expand global business by selling global financial products such as U.S. stocks in the future. Mirae Asset Global Investments has already entered the global ETF (Exchange-Traded Fund) market by acquiring U.S.-based asset manager Global X. Global X is growing rapidly by increasing its lineup of ETFs centered on innovative industries such as AI (artificial intelligence), robotics, semiconductors, cloud, and aerospace.
The Japanese capital market is showing a favorable trend due to the value-up program policy, the introduction of NISA (Nippon Individual Savings Account, a tax-exempt small investment scheme), and inflows of overseas funds.
Accordingly, Mirae Asset is expected to implement a strategy of selling Global X's financial products to Japanese investors. Japan also has low geopolitical risks, providing an environment suitable for stable business operations. The mention of the possibility that Mirae Asset Securities will collaborate with the Okasan Securities Group in product and service fields in the future also appears to reflect this strategy.
Park Hyun-ju, Chairman of Mirae Asset Group and Global Strategy Officer (GSO), has presented the "Mirae Asset 3.0" vision aiming to build a global investment platform, while promoting the expansion of the global financial network and strengthening digital finance competitiveness. The strategy aims to reduce dependence on specific countries or asset classes and secure a stable revenue base even amid changes in economic cycles.
An official from Mirae Asset Securities said, "This will be an important opportunity to secure a local business foundation in Japan and expand global operations," adding, "We are preparing our business tailored to the local market and regulations, and we will pursue retail business in the future."
As of the end of last June, it operates 25 local subsidiaries and three offices across 11 regions worldwide, including Hong Kong, the United States, India, and Vietnam. Its global workforce numbers approximately 5,300 people.
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