Mirae Asset Securities Issuer Summary

Report date: 2026-05-13
Issuer: Mirae Asset Securities Co., Ltd.
Relevant bond context: Mirae Asset Securities senior unsecured and foreign-currency bond investors; issuer-level credit view, not a recommendation on a specific bond issue

1. Business Snapshot and Recent Developments

Mirae Asset Securities Co., Ltd. (“Mirae Asset Securities”) is not the Mirae Asset Financial Group as a whole, but a major Korea-based securities company. For credit analysis, it should be viewed not as a commercial bank centred on deposits and lending, but as a market-based financial issuer combining client assets, brokerage, wealth management, retirement pensions, trading, investment banking, proprietary investment, and overseas securities subsidiaries. For bond investors, the central question is how far the company’s large client base and access to capital markets can absorb the volatility associated with proprietary investment, real estate and alternative investments, structured products, repos, commercial paper, and short-term borrowings.

The company’s official corporate profile page shows, on a consolidated basis as of end-December 2025, total assets of KRW150.3tn, equity of KRW13.5tn, and client assets of KRW601.6tn. The 2025 Integrated Report shows total assets of KRW132.8tn, equity of KRW12.3tn, and client assets of KRW405.3tn as of end-March 2025, and identifies Hong Kong, the United States, London, Singapore, India, Vietnam, Indonesia, Brazil, and Mongolia as key markets.

The most recent credit-relevant change for the company is the sharp improvement in earnings in full-year 2025 and 1Q 2026. Adding up the quarterly consolidated columns in the official XLSX materials, 2025 operating profit was approximately KRW1.92tn and net profit attributable to owners of the parent was approximately KRW1.57tn, a clear increase from operating profit of approximately KRW1.19tn and net profit attributable to owners of the parent of approximately KRW0.92tn in 2024. 1Q 2026, although based on unaudited materials, was an extremely strong quarter, with operating profit of approximately KRW1.38tn and net profit attributable to owners of the parent of approximately KRW1.00tn. However, earnings at a securities company are heavily affected by market turnover, equity prices, interest rates, FX, valuation gains and losses, and the trading environment. 1Q 2026 should therefore not be simply annualised and treated as recurring earnings.

On the franchise side, WM product balances, retirement pensions, and brokerage assets are expanding. According to the official factsheet, WM product balances were KRW211.1tn at end-2025 and KRW224.0tn at end-1Q 2026; retirement pensions were KRW38.1tn at end-2025 and KRW42.4tn at end-1Q 2026; and brokerage assets were KRW306.9tn at end-2025 and KRW357.6tn at end-1Q 2026. These figures indicate that Mirae Asset Securities’ earnings are supported not only by proprietary trading, but also by client assets, pensions, overseas equity trading, and financial product distribution.

Overseas expansion also changes the issuer profile. According to the 2025 Integrated Report, the company has subsidiaries and offices in Hong Kong, the United States, the United Kingdom, Singapore, India, Vietnam, Indonesia, Brazil, and Mongolia, among others. In India, the acquisition of Sharekhan added more than 3.1 million clients, over 130 branches, and more than 4,400 business partners. Over the long term, this broadens overseas WM and brokerage revenues, but acquisition integration, local regulation, profitability, and capital allocation remain monitoring items.

On ratings, S&P Global Ratings affirmed Mirae Asset Securities’ long- and short-term issuer credit ratings of BBB/A-2 on 2025-06-24 and revised the outlook back to Stable from Negative. S&P cited improved profitability at Korean securities firms, manageable real estate-related risk, the company’s capital and liquidity buffers, and its franchise as the largest securities company in Korea as key reasons. At the same time, S&P expects the company’s RAC ratio to be around 8.0-9.0% over the next one to two years, and identified as downside factors a sustained decline below 7%, deterioration in funding and liquidity, or weakening quality of corporate loans and investments. This means that the recent improvement in earnings supports the rating, while capital, liquidity, and risk appetite remain constraints on the credit assessment.

It is therefore insufficient to characterise the company simply as “one of Korea’s largest securities companies with strong profits.” Its deep client assets and business franchise are supportive, but the core issue is how far these strengths can be converted into cash, funding access, and loss absorption under market stress. Total assets of KRW169.9tn, equity of KRW14.3tn, and increases in repos, borrowings, and client deposits at end-1Q 2026 should be viewed with the same weight as the improvement in earnings.

2. Industry Position and Franchise Strength

Mirae Asset Securities’ franchise rests on a combination of scale as a domestic Korean securities company, client assets, retirement pensions, overseas equity trading, and an overseas network. In its 2025-06-24 release, S&P described the company as Korea’s largest securities company and stated that its strong business franchise and diversified funding sources support adequate funding and liquidity. The company’s own disclosures also show client assets of KRW601.6tn as of end-December 2025, and total assets of KRW132.8tn and equity of KRW12.3tn as of end-March 2025, confirming that it is a leading domestic securities franchise.

The strength of a securities company lies not in stable insured deposits, but in its ability to generate revenue from client flows, product distribution, asset balances, pension transfers, overseas equity trading, and capital markets transactions. The official factsheet shows a brokerage trading value share of 11.4% and commission income share of 8.8% at end-2025, and 10.7% and 8.1%, respectively, in 1Q 2026. Shares in the high-single-digit to low-double-digit range indicate a strong presence in the domestic securities market. However, because market share is affected by market turnover and investor mix, the credit focus is less on the level in any single year and more on whether client asset balances, pension balances, and product balances remain sticky over time.

Retirement pensions and wealth management move the earnings profile closer to balance-based revenue. The 2025 Integrated Report describes the company as one of the industry leaders in retirement pension reserves, and the official factsheet shows retirement pensions of KRW38.1tn at end-2025 and KRW42.4tn at end-1Q 2026. Pension assets depend more on client retention, product line-up, investment performance, and regulatory changes than on short-term trading revenue. If accumulated sustainably, they can soften volatility in market-based earnings.

Overseas equity trading and global asset allocation are also distinguishing features. The 2025 Integrated Report shows overseas equity balances increasing from KRW16.5tn in 2022 to KRW23.5tn in 2023 and KRW40.8tn in 2024. Linking domestic brokerage with an overseas investment platform increases commissions and client touchpoints, but also raises the importance of foreign-currency liquidity, sudden moves in overseas markets, client leverage, systems, and compliance.

Overseas subsidiaries represent both revenue diversification and risk diversification. S&P stated that clearing services and ETF trading in developed markets, as well as WM and brokerage in India, support profitability. At the same time, overseas securities subsidiaries involve local regulation, FX, capital injections, clearing and collateral, and operational risk. It is therefore necessary to assess not only the growth potential but also the parent’s potential support burden under stress.

Investment banking, trading, and proprietary investment create both earnings capacity and volatility. The 2025 Integrated Report refers to market making, liquidity provision for ETFs and government bonds, FX, securities lending and borrowing, swaps, IPOs, corporate bonds, global bonds, real estate PF, and PEF-related transactions. These are earnings opportunities, but they also involve risk-weighted exposure, valuation gains and losses, collateral needs, and regulatory capital burdens.

The company’s industry position is therefore strong, but this is not the same type of stability as a bank deposit and lending franchise. Its foundation is market access, client assets, product development, risk management, and overseas expansion. If market prices, regulation, real estate, foreign-currency liquidity, or investor sentiment toward structured products deteriorate, earnings, collateral requirements, and funding burdens can shift over a short period.

3. Segment Assessment

In assessing Mirae Asset Securities by segment, it is important to note that the company’s disclosed revenue categories do not necessarily align with the risk categories needed for credit analysis. This report reads the business by function, based on what can be confirmed from official materials: WM and retirement pensions, brokerage, trading and market activities, investment banking, proprietary and alternative investments, and overseas subsidiaries. The credit question is which businesses support the earnings floor and which businesses amplify earnings and capital volatility.

Note: Business indicators are based on the official 4Q 2025 and 1Q 2026 factsheets. Overseas network, Sharekhan, and business descriptions are based on the 2025 Integrated Report. The table reflects a credit interpretation by business line and is not an official segment profit table disclosed by the company.

WM and retirement pensions are the businesses most capable of stabilising credit quality. Retirement pensions and financial product balances are more closely tied to balances than trading flows, and they help preserve client relationships over longer periods. The 2025 Integrated Report states that in pensions, the company emphasises in-kind transfers, global asset allocation, and long-term stable growth portfolios. If this becomes recurring revenue, earnings quality should improve.

Brokerage is a traditional strength. Brokerage assets increased from KRW306.9tn at end-2025 to KRW357.6tn at end-1Q 2026, indicating strong client assets, market appreciation, and trading activity. However, brokerage is affected by US equity markets, FX, overnight trading, margin trading, and risk appetite. The key point is whether client assets and commission income remain resilient even in weak markets.

Trading and market activities support high earnings, but should be treated conservatively. They expand when lower interest rates, higher equity prices, spread compression, and client flows are favourable. Conversely, under a market shock, they can generate valuation losses, collateral postings, liquidity needs, and repo rollover risk. The strong 1Q 2026 earnings are supportive, but should not be treated as recurring earnings.

Investment banking and real estate PF-related businesses combine earnings opportunities with risk. The company is involved in real estate PF, private equity funds, infrastructure, and corporate financing. In June 2025, S&P changed its view on Korean securities companies’ real estate-related risks to manageable under stricter screening, provisions and impairments taken in recent years, and regulatory oversight. This does not mean the risk has disappeared. Regional real estate, overseas commercial real estate, and subordinated or equity-like investments are especially likely to pressure both capital and earnings when prices fall. S&P stated that Mirae Asset Securities’ domestic real estate financing is concentrated in Seoul and surrounding cities and that high-risk exposures based on strict criteria are limited, but this report has not verified the details of individual transactions.

Proprietary and alternative investments raise earnings capacity, while also potentially constraining ratings. The 2025 Integrated Report indicates a policy of prioritising timely exits from long-term unlisted assets and reducing the holding burden of illiquid assets. For bond investors, the important points are monetisation capacity, collateral eligibility, valuation transparency, provisioning, and the relationship with loss-absorbing capital.

Overseas subsidiaries broaden growth potential, but also complicate the analysis. The Sharekhan acquisition expands the company’s client base in India, while also requiring integration of local personnel, systems, compliance, products, and client behaviour into parent-level risk management. As overseas earnings increase, the company’s credit profile will be exposed not only to Korea, but also to regulation and market stress across multiple markets.

4. Financial Profile and Analysis

Financially, Mirae Asset Securities materially improved its earnings capacity from 2023 to 2025. Based on annual sums extracted from the official financial XLSX materials, consolidated operating revenue was KRW20.36tn in 2023, KRW22.24tn in 2024, and KRW29.28tn in 2025; operating profit was KRW0.52tn, KRW1.19tn, and KRW1.92tn, respectively; and net profit attributable to owners of the parent was KRW0.33tn, KRW0.92tn, and KRW1.57tn. 1Q 2026, although unaudited, showed operating profit of KRW1.38tn and net profit attributable to owners of the parent of KRW1.00tn, indicating that the improvement through 2025 continued at least into the start of 2026.

Note: 2023-2025 figures are obtained by summing the quarterly consolidated columns from Mirae Asset Securities’ official IR 4Q Financial Statements XLSX for each year. 1Q 2026 is based on unaudited quarterly materials posted on 2026-05-12. Operating revenue is total operating revenue for a securities company and does not have the same stability as revenue at a general operating company.

The most important point from this table is the significant recovery in earnings capacity from the low-profit 2023 period to 2025. In 2023, Korean securities companies broadly faced heavy pressure from real estate and alternative investment risks, higher interest rates, weak markets, valuation losses, and provisions. S&P also revised the company’s outlook to Negative in March 2024. In 2025, brokerage, wealth management, trading, overseas subsidiaries, and a better interest-rate environment combined to support improvement, and S&P returned the outlook to Stable in June 2025. The earnings recovery creates real capacity to maintain capital and liquidity buffers.

However, earnings quality requires caution. The increase in 2025 net profit is positive, but in a securities company, favourable market years often lead to simultaneous increases in trading revenue, valuation gains, brokerage commissions, and client margin activity. This report has not confirmed the 1Q 2026 high earnings by segment or by valuation component, so the quarter should not be used to estimate recurring earnings. Credit analysis should focus on whether the company can secure operating profit in weaker markets and whether capital ratios and liquidity can be maintained even when losses, provisions, and collateral needs increase.

The balance sheet is expanding alongside the earnings improvement. Consolidated total assets increased from KRW128.2tn at end-2023 to KRW137.2tn at end-2024, KRW150.3tn at end-2025, and KRW169.9tn at end-1Q 2026. Equity increased from KRW11.2tn to KRW12.3tn, KRW13.5tn, and KRW14.3tn, respectively, supported by retained earnings. However, there are periods when total assets have grown faster than equity, and the balance sheet expanded sharply by end-1Q 2026. For a securities company, growth in total assets may involve repos, securities lending and borrowing, client deposits, derivatives, short-term funding, and collateral management. It is therefore important not to read balance-sheet expansion simplistically as credit improvement.

Note: The table above is extracted from the consolidated statements of financial position in the official Financial Statements XLSX for each period-end. Client deposits and similar balances, borrowing liabilities, repos, and derivative-linked securities are summarised from the company’s reported line items for credit-analysis purposes.

This balance-sheet table shows that the company’s creditworthiness depends not only on earnings capacity, but also on market-based funding and liquidity management. Cash and deposits of around KRW9-10tn are substantial, but repo sales are around KRW45-50tn, and borrowing liabilities are around KRW80tn. A significant portion of total assets is therefore linked to market-based funding and collateralised transactions. As a result, an abrupt change in credit quality may appear first in the repo market, collateral values, CP and bond market access, client deposit outflows, and foreign-currency liquidity, before it appears in the income statement.

On capital, the official Integrated Report shows an NCR of 2,858% at end-2024. This is an important indicator of regulatory capital headroom for Korean securities companies and does not point to an immediate regulatory capital shortfall. S&P also expects the company’s RAC ratio to be 8.0-9.0% over the next one to two years and expects it to maintain sufficient capital buffers. However, the RAC ratio is a rating-agency risk-adjusted measure and differs from the company’s disclosed NCR. A high domestic regulatory metric does not by itself remove constraints on the international rating.

Shareholder returns also need to be incorporated into the financial analysis. The 2025 Value-up Report shows a total shareholder return ratio of 40% in 2024, with cash dividends of KRW146.7bn and treasury share cancellations of KRW220.3bn. The company’s shareholder return policy for 2024-2026 includes a minimum return ratio of 35% and treasury share cancellations. When earnings are strong, there is room for returns, but if earnings decline due to market factors, the priority between the return policy and capital buffers needs to be checked.

Overall, Mirae Asset Securities’ financial profile is clearly supported by improved profitability and increased capital, while funding and balance-sheet volatility as a market-based financial company remain constraints. Earnings in 2025 and 1Q 2026 have strengthened the company’s capacity to absorb legacy real estate and alternative investment risks and support rating stabilisation. However, given the scale of total assets, repos, borrowings, and client deposits, the credit should not be simplified as “safe because it is profitable.” Credit assessment requires an integrated view of earnings repeatability, capital headroom, liquidity, and the quality of risk assets.

5. Structural Considerations for Bondholders

The first structural point for bondholders is that while Mirae Asset Securities is part of the Mirae Asset Financial Group, the issuer is Mirae Asset Securities Co., Ltd. According to the 2025 Integrated Report, as of end-March 2025 on a common-share basis, Mirae Asset Capital Co., Ltd. held 32.0%, National Pension Service held 6.3%, NAVER Corp. held 8.3%, treasury shares accounted for 23.0%, and others held 30.3%. Mirae Asset Capital is a major shareholder and the group relationship is important, but the group brand and parent ownership should not be confused with an explicit guarantee on foreign-currency bonds.

Using consolidated financial statements is reasonable. Overseas subsidiaries and operating subsidiaries generate the company’s earnings capacity, client base, risk exposure, and capital needs, so the consolidated basis cannot be ignored when evaluating issuer credit quality. At the same time, bondholders of the issuer entity do not always have free access to cash, capital, client assets, collateral, or regulatory capital held at subsidiaries. Securities subsidiaries in particular are subject to each jurisdiction’s client protection, clearing, collateral, capital, and liquidity regulations. Under stress, local clients, regulators, and counterparties may take priority over upstreaming funds from a subsidiary to the parent.

The company’s group structure provides both support and constraints from a credit perspective. The group brand, Mirae Asset Capital’s major shareholding, overseas network, and links with Mirae Asset Global Investments and intra-group products can support client acquisition and funding access. At the same time, group growth investment, overseas businesses, acquisitions, related-party transactions, and capital allocation could affect the issuer’s balance sheet and risk appetite. Bondholders should assess not only the group’s business strength, but also in which legal entity that strength is generated and in what priority it reaches issuer-level debt.

There are still many unverified items for individual bond analysis. This report has not reviewed the Offering Circulars for foreign-currency senior notes, governing law, existence of guarantees, negative pledge, cross default, change of control, tax gross-up, early redemption, subordination, or the presence or absence of TLAC-like loss-absorption terms. S&P has affirmed the long-term issue rating of BBB on the company’s outstanding senior unsecured foreign-currency notes, but individual bond investment requires confirmation of terms and maturity.

Structurally, Mirae Asset Securities differs from a commercial bank holding company bond. Bondholder recovery resources depend on market access, liquid assets, capital, earnings, and intra-group capital allocation. The brand is strong in normal conditions, but under stress, investors should verify usable cash, assets already pledged as collateral, and the debt that will be rolled over on a priority basis.

6. Capital Structure, Liquidity and Funding

Analysis of Mirae Asset Securities’ capital structure and liquidity needs to focus on repos, short-term borrowings, CP, client deposits, and structured product liabilities, given its nature as a securities company. At end-1Q 2026, consolidated total assets were KRW169.9tn, liabilities were KRW155.5tn, and equity was KRW14.3tn. Cash and deposits were KRW9.4tn, but borrowing liabilities were KRW83.0tn, including repo sales of KRW49.6tn, direct borrowings of KRW12.2tn, CP borrowings of KRW3.6tn, and derivative-linked securities sold of KRW7.2tn. These figures indicate that the company has substantial market access, while also relying heavily on market-based funding.

Repo funding is a normal funding source for a securities company, and the size of the balance is not in itself an immediate weakness. Repos fund client transactions, market making, inventory holdings, and securities lending and borrowing by raising short-term funding against securities collateral. Under credit stress, however, falling collateral values, higher haircuts, shorter rollover tenors, and lower counterparty risk appetite tend to occur at the same time. The KRW49.6tn repo sales balance at end-1Q 2026 shows the scale of the company’s funding capacity, but also indicates that collateral management is central to the credit profile.

CP borrowings and short-term borrowings are also monitoring items. CP borrowings increased from KRW2.6tn at end-2023 to KRW3.2tn at end-2024, KRW3.3tn at end-2025, and KRW3.6tn at end-1Q 2026. The absolute amount is limited relative to total liabilities, but if short-term markets close, it could create liquidity pressure when combined with other short-term funding. S&P has also stated that a downgrade could occur if the company aggressively expands the promissory note business or securities lending by its US subsidiary, increasing maturity mismatches between funding sources and assets.

Client deposits show both the depth of the client base and potential outflow risk. Client deposits and similar balances were KRW21.8tn at end-1Q 2026, up from KRW17.9tn at end-2025. However, unlike bank deposits, they are affected by investor trading, withdrawals, risk aversion, FX, and trends in overseas equity investment. Liquidity analysis needs to distinguish “depth of client franchise” from “liquidity available for issuer debt repayment.”

Derivative-linked securities and structured products decreased from KRW9.4tn at end-2023 to KRW6.6tn at end-2024, and were around KRW7.2tn at end-2025 and end-1Q 2026. Korean securities companies have historically faced issues involving ELS/DLS, overseas indices, abrupt interest-rate and equity market moves, client distribution, hedging, and foreign-currency liquidity. The lower balance than in 2023 is positive, but structured products can involve hedge gains and losses, collateral postings, client management, and reputational risk under market stress. Credit assessment should check not only the balance, but also product type, hedging method, foreign-currency liquidity, and client sales governance.

On liquidity management, the 2025 Integrated Report describes regulatory ratios including NCR and the liquidity coverage ratio, the risk management committee, an integrated crisis management system, and management of liquidity gaps and liquidity ratios. S&P also assesses the company’s market position and diversified funding sources as supportive of funding and liquidity. However, this report has not verified the maturity ladder, funding by currency, foreign-currency liquidity, unused committed lines, haircuts by collateral type, or liquidity by legal entity.

This limitation is important. The credit quality of a market-based financial issuer depends not only on annual earnings or total capital, but also on its ability to withstand market stress over days to weeks. When equities, bonds, and FX move simultaneously, valuation losses, client withdrawals, collateral postings, repo revaluation, CP market closure, and higher foreign-currency funding costs can overlap. As a major securities company, Mirae Asset Securities is likely to have stronger market access than smaller peers, but the extent to which that strength is maintained under stress should be confirmed in the next update using further detail on maturities, currencies, and liquidity buffers.

7. Rating Agency View

The ratings show both the company’s strong franchise and the constraints of being a market-based financial institution. In the company profile section of the 2025 Integrated Report, ratings as of end-June 2025 are shown as AA for domestic corporate bonds, A1 for commercial paper, Moody’s Baa2 (Stable) for foreign-currency bonds, and S&P BBB (Stable) for foreign-currency bonds. Domestic AA/A1 ratings indicate a strong relative position and strong credit standing in Korea’s capital markets, but they should not be compared mechanically by notching with international BBB/Baa2 ratings. Domestic and international ratings differ in scale, rating universe, sovereign and institutional environment, and assumptions on default probability.

S&P’s 2025-06-24 release is the most useful external credit assessment for understanding the current rating view. S&P judged that Negative pressure had receded because earnings at Korean securities companies had improved and real estate risk had become manageable. For Mirae Asset Securities, S&P cited an expected RAC ratio of around 8.0-9.0%, expanding profits at overseas subsidiaries, its franchise as the largest securities company in Korea, and diversified funding sources.

At the same time, S&P’s rating clearly identifies the company’s constraints. Downside factors are a material deterioration in the funding and liquidity profile, the RAC ratio remaining below 7%, or a significant deterioration in the quality of corporate loans and investments leading to a sharp increase in earnings volatility. An upgrade would require the company to sustain a RAC ratio above 10% and maintain a good track record of risk management and funding and liquidity buffers. In other words, the current Stable outlook does not mean “the company is strong, so upside potential is large.” It means that earnings improvement and risk management support the rating for now, while capital and liquidity constraints remain.

The rating agency view is broadly consistent with this report’s credit view. The large franchise, domestic and overseas market access, and strong current earnings support investment-grade ratings. At the same time, market-based earnings, repos, CP, short-term borrowings, proprietary investments, real estate, overseas CRE, alternative investments, and structured products constrain the rating ceiling. Stable should be read not as a reason for complacency, but as a signal that the monitoring focus has shifted to capital, liquidity, and risk appetite.

8. Credit Positioning

Mirae Asset Securities is naturally positioned as a higher-tier Korean securities company and as a lower- to mid-tier international investment-grade market-based financial issuer. Domestically, its equity base, client assets, overseas network, pensions, brokerage, and overseas equity trading scale are strong, and its domestic AA/A1 ratings indicate strong domestic market access. Internationally, however, the ratings are S&P BBB/A-2 and Moody’s Baa2, which are not high ratings among global financial institutions. This reflects the market-based revenue profile, risk-adjusted capital, liquidity, the Korean securities company sector, proprietary investment, and real estate risk as viewed by international markets.

Compared with other securities-company credits, the company differs from a global securities group such as Nomura Holdings in scale, geographic diversification, resolution regime, TLAC, and holding company structure. The credit questions, however, are similar: how far client assets and stable revenue can absorb volatility in market-based earnings; how much capital proprietary investments consume; and how much market funding and collateral capacity remains under stress.

Compared with domestic financial institutions, earnings and funding volatility are higher than at banks. Major Korean banks have deposit franchises, lending, regulatory capital, and links to the central bank and deposit insurance framework. Mirae Asset Securities has client deposits and repos, but these are different in nature from bank deposits. Therefore, even within the same Korean financial sector, securities company bonds require an additional risk premium for market liquidity, client trading, securities prices, structured products, and alternative investments. However, given its scale as a major securities company and its presence in domestic capital markets, it should have higher stress resilience than small and mid-sized securities companies.

No conclusion is drawn on relative value because this report has not checked market spreads, bond prices, yields, OAS, or same-tenor comparisons. Without market prices, the qualitative positioning is: a BBB/Baa2 issuer with a strong franchise as one of Korea’s largest securities companies, but with larger market, liquidity, and investment risks than a bank-type credit.

9. Key Credit Strengths and Constraints

Mirae Asset Securities’ first strength is its scale and client base as a Korean securities company. Client assets of KRW601.6tn, equity of KRW13.5tn, brokerage assets of KRW357.6tn, WM product balances of KRW224.0tn, and retirement pensions of KRW42.4tn indicate client touchpoints that go beyond annual trading revenue. This supports funding access and the earnings floor by making it easier to retain a degree of client flow and domestic market recognition even when capital markets are closed.

The second strength is the recent earnings improvement. Net profit attributable to owners of the parent was approximately KRW1.57tn in 2025 and approximately KRW1.00tn in 1Q 2026, a substantial improvement from the weak 2023 level. This expands the capacity for equity accumulation, provision and impairment absorption, shareholder returns, overseas expansion, and rating stabilisation. S&P’s revision of the outlook back to Stable was also based on sector-wide earnings improvement and the manageability of real estate risk.

The third strength is business diversification. The company has not only domestic brokerage, but also WM, pensions, overseas equities, overseas subsidiaries, Sharekhan in India, investment banking, trading, clearing services, and ETF-related businesses. Compared with smaller securities companies, it is more resilient to deterioration in a single market or product. S&P also stated that increased earnings from overseas subsidiaries support the company’s profitability.

The first constraint, however, is earnings volatility as a market-based financial company. Earnings in 2025 and 1Q 2026 were strong, but they are affected by trading, valuation gains, trading turnover, overseas equities, the interest-rate environment, real estate and alternative investments, and client risk appetite. Securities company earnings can contract rapidly in a bad year. The current earnings capacity supports credit quality, but should not be mechanically fixed as future normalised earnings.

The second constraint is the balance sheet and funding structure. At end-1Q 2026, total assets were KRW169.9tn, borrowing liabilities were KRW83.0tn, repo sales were KRW49.6tn, and client deposits and similar balances were KRW21.8tn. Cash and deposits of KRW9.4tn are substantial, but the amount of collateral needs, funding outflows, and rollover requirements under stress is also large. Diversity of funding sources is a strength, but dependence on market-based funding is a rating constraint.

The third constraint is risk from real estate, alternative investments, and structured products. S&P has assessed real estate risk at Korean securities companies as manageable, but overseas CRE and alternative investments remain pockets of risk. Mirae Asset Securities is involved in real estate PF, commercial real estate, NPLs, PEFs, structured products, and derivative-linked securities. These are earnings opportunities in normal conditions, but can lead to valuation losses, provisions, liquidity needs, and reputational risk in a downturn.

The fourth constraint is structure and transparency. It is necessary to distinguish among the issuer entity, consolidated subsidiaries, Mirae Asset Capital, and the Mirae Asset Financial Group. The group brand and overseas network are supportive, but they are not equivalent to explicit guarantees on foreign-currency bonds. In addition, this report has not reviewed individual bond terms, maturity ladders, foreign-currency liquidity, detailed PF and overseas CRE exposures, or Moody’s detailed rating report. Issuer-level credit views and individual bond investment decisions should therefore be kept separate.

10. Downside Scenarios and Monitoring Triggers

The most realistic downside scenario is simultaneous deterioration in domestic and overseas markets, causing brokerage revenue, trading revenue, valuation gains and losses, client assets, and collateral needs to weaken at the same time. If equity markets fall sharply, interest rates and FX move unfavourably, client overseas equity trading declines, and haircuts rise in the repo market, liquidity and collateral pressure can appear before the effect is fully visible in earnings. Indicators to monitor are quarterly operating profit, brokerage assets, WM product balances, client deposits, repo balances, cash and deposits, CP borrowings, foreign-currency borrowings, and rating actions.

The second scenario is a renewed deterioration in real estate and alternative investment risk. If valuations worsen for regional domestic real estate, PF, overseas commercial real estate, illiquid assets, and subordinated or equity-like investments, additional provisions or impairments may be required, pressuring earnings and capital at the same time. S&P changed its view in 2025 to regard the risk as manageable, but it also stated that pockets of risk remain in overseas CRE. Indicators to monitor are impairments and provisions, alternative investment balances, PF commitments, overseas CRE by region, ranking and valuation, NCR, and S&P’s RAC outlook.

The third scenario is liquidity pressure in short-term funding, repos, and the CP market. As a major securities company, normal market access is strong, but under market-wide stress, funding tenors may shorten, collateral postings may increase, and client withdrawals and securities lending repayments may overlap. S&P’s identification of maturity mismatch from expansion in the promissory note business or US subsidiary securities lending as a downgrade trigger is important. Indicators to monitor are short-term borrowings, CP, repos, bond maturities, foreign-currency liquidity, unused committed lines, cash and deposits, and rating-agency assessments of funding and liquidity.

The fourth scenario is failure in overseas expansion and acquisition integration. If the Indian business after the Sharekhan acquisition does not monetise as expected, and client attrition, higher costs, regulatory responses, or systems integration problems arise, the overseas growth story may become a capital burden rather than an earnings support. Developed-market subsidiary clearing, ETF, and securities lending businesses also involve collateral, counterparty, and operational risks. Indicators to monitor are overseas subsidiary pre-tax profit, capital injections, acquisition-related costs, goodwill and intangible assets, local regulation, and clearing and collateral-related liquidity metrics.

The fifth scenario is the emergence of non-financial risks such as sales practices, systems, cyber, and AML. As complex financial products, overseas equity trading, structured products, margin trading, and AI/digital investment advice increase client touchpoints, sales governance and systems resilience become more important. Regulatory sanctions, customer compensation, sales suspensions, system outages, and internal control disclosures should be monitored.

For ratings surveillance, S&P’s three conditions are important. First, the funding and liquidity profile should not deteriorate materially. Second, the RAC ratio should not remain below 7%. Third, the quality of corporate loans and investments should not deteriorate materially in a way that sharply increases earnings volatility. Conversely, if the RAC ratio is sustained above 10% and the company establishes a stronger track record of risk management and liquidity, upgrade potential could emerge, but this should not be assumed at present.

11. Credit View and Monitoring Focus

Mirae Asset Securities’ current credit quality is appropriately assessed as high for a Korean securities company and as a BBB/Baa2-equivalent market-based financial issuer in the international investment-grade universe. The direction has improved from the weakness seen in 2023-2024, but as of 2026-05-13 it is more stable than improving, with further improvement awaiting confirmation of earnings repeatability and maintenance of capital and liquidity. The probability of a sharp near-term deterioration in credit quality does not appear high at present, but if market shocks, repos and short-term funding, proprietary investment, real estate, and overseas CRE losses occur simultaneously, the credit profile could change quickly through liquidity and capital expectations rather than through earnings alone.

The largest support for the company’s credit quality comes from its franchise, client assets, capital, and market access. The official company profile as of end-December 2025 shows client assets of KRW601.6tn, equity of KRW13.5tn, and total assets of KRW150.3tn. At end-1Q 2026, consolidated equity was KRW14.3tn, brokerage assets were KRW357.6tn, WM product balances were KRW224.0tn, and retirement pensions were KRW42.4tn. The company’s deep client base as a domestic securities company supports normal-time earnings and market access. Net profit of approximately KRW1.57tn in 2025 and approximately KRW1.00tn in 1Q 2026 increases its ability to absorb legacy real estate and alternative investment risks, and is consistent with S&P’s Stable outlook.

However, the constraints on the company’s credit quality are also clear. As a securities company, earnings are affected by market turnover, trading, valuation gains and losses, proprietary investments, structured products, overseas subsidiaries, and client risk appetite. Funding also relies heavily not on bank deposits, but on repos, CP, borrowings, bonds, client deposits, and collateralised transactions. The scale of borrowing liabilities of KRW83.0tn, repo sales of KRW49.6tn, and total assets of KRW169.9tn at end-1Q 2026 indicates business strength in normal conditions, but under stress it becomes a question of rollover, collateral, haircuts, and foreign-currency liquidity.

Investors should view the company as “a higher-quality Korean securities company credit where earnings improvement has reduced downward rating pressure at the BBB/Baa2 level,” while recognising that it is not a bank-type stable credit. Strong earnings in 2025 and 1Q 2026 support a hold case, but are not sufficient for an additional investment decision without checking price and spread. Before investing in individual foreign-currency bonds, investors need to confirm maturity, terms, issue price, liquidity, spreads versus same-tenor Korean financial institution bonds, foreign-currency liquidity, and any guarantee or subordination features of the specific bond.

The monitoring priorities are, first, earnings quality; second, capital and RAC/NCR; third, liquidity, repos, and short-term funding; fourth, real estate, overseas CRE, and alternative investments; and fifth, overseas subsidiaries and Sharekhan integration. In particular, the focus should not be on how far 1Q 2026’s high earnings can be repeated, but on whether earnings and liquidity can be maintained even in weaker markets. S&P’s Stable outlook indicates that credit quality is currently stable, but the conditions for maintaining the rating lie in capital and liquidity. For bondholders, the core monitoring items are therefore not the absolute level of quarterly profit, but capital headroom relative to total asset growth, dependence on short-term funding, impairment of illiquid and real estate risks, foreign-currency liquidity, and the direction of the RAC ratio indicated by the rating agency.

12. Short Summary & Conclusion

Mirae Asset Securities is a market-based financial issuer and one of Korea’s largest securities companies, with deep client assets, WM and pensions, brokerage, and overseas operations. The earnings improvement from 2025 to 1Q 2026 and S&P’s return to a Stable outlook support credit quality, but this is not a bank-type stable credit. Sensitivity remains to repos and short-term funding, proprietary investment, real estate and overseas CRE, and structured products. Detailed investment decisions should distinguish issuer credit from the terms of individual bonds.

13. Sources

• Mirae Asset Securities, 2025 4Q Earnings Release, official IR PDF, 2025 4Q / FY2025.
• Mirae Asset Securities, 2025 4Q Financial Statements, official IR XLSX, 2025 4Q / FY2025.
• Mirae Asset Securities, 2026 1Q Earnings Release, official IR PDF, 2026 1Q, posted 2026-05-12.
• Mirae Asset Securities, 2026 1Q Financial Statements, official IR XLSX, 2026 1Q, posted 2026-05-12.
• Mirae Asset Securities, 2025 Integrated Report, official IR PDF, 2024 reporting year / published as 2025 report.
• Mirae Asset Securities, 2025 Value-up Report, official IR PDF, 2025.
• Mirae Asset Securities, Who We Are, official company page, company figures as of Dec 2025.
• S&P Global Ratings, Mirae Asset Securities Outlook Revised To Stable On Sector's Improving Profits; 'BBB/A-2' Ratings Affirmed, 2025-06-24.
• Internal extraction file: issuer_summary/issuers/mirae_asset_securities/data/mirae_asset_securities_key_metrics.json.

14. Unverified / Pending

• Offering Circular, guarantee, covenants, change of control, cross default, governing law, tax provisions, and subordination of individual foreign-currency bonds.
• Foreign-currency liquidity, maturity ladder, funding by currency, unused committed lines, and liquidity by legal entity.
• Detailed exposures to real estate PF, overseas commercial real estate, alternative investments, NPLs, PEFs, and subordinated or equity-like investments. These affect capital headroom, impairment risk, and RAC/NCR assessment.
• Full text of Moody’s detailed rating report and additional international rating materials from Fitch or other agencies.
• Current bond prices, yields, OAS, Z-spreads, and relative value versus same-tenor Korean financial institution bonds.
• Full-year 2026 audited financials, and the composition and repeatability of the high 1Q 2026 earnings.