Working Note: Mirae Asset Securities

Knowledge Snapshot

This file is issuer coverage memory for the next research agent. Detailed extracted metrics are stored in data/mirae_asset_securities_key_metrics.json.

Last updated: 2026-06-12

Issuer Overview

• Mirae Asset Securities Co., Ltd. is a major Korea-based securities company. It should be analysed as the issuing securities company, not as Mirae Asset Financial Group as a whole.
• The issuer is a market-based financial institution rather than a commercial bank. The credit analysis should separate client assets, wealth management, retirement pensions, brokerage, trading, investment banking, proprietary/alternative investment, funding, structured products, and overseas subsidiaries.
• The current reports focus on issuer-level credit for senior unsecured and foreign-currency bond investors. They do not make security-level recommendations.

Core Credit View

• The May 2026 issuer_summary and Q1 2026 issuer_flash position Mirae Asset Securities as a higher-quality Korean securities-company credit and a BBB/Baa2-equivalent international investment-grade market-facing financial issuer.
• The direction improved from the weaker 2023-2024 period because earnings recovered materially through 2025 and 1Q26, and S&P revised the outlook back to Stable in June 2025. The view is still more stable than actively improving because earnings repeatability, capital, liquidity and risk-asset growth remain the key constraints.
• A sharp near-term deterioration is not the base case in the current reports, but the credit profile could move quickly under simultaneous market shock, funding stress, valuation losses, real estate / alternative-investment losses, and foreign-currency liquidity pressure.

Business and Franchise View

• The franchise rests on scale as a large Korean securities company, a deep client asset base, brokerage, WM products, retirement pensions, overseas equity trading, investment banking, trading/market activities, and overseas subsidiaries.
• Client assets, WM products, retirement pensions and brokerage assets are core support factors because they indicate customer touchpoints beyond one-year trading revenue. However, these balances can still be affected by market prices, client activity and risk appetite.
• Overseas expansion is credit-relevant. The 2025 Integrated Report identifies key markets including Hong Kong, the United States, London, Singapore, India, Vietnam, Indonesia, Brazil and Mongolia. The Sharekhan acquisition increases India exposure and should be monitored for integration, local regulation, profitability and capital needs.

Capital Structure and Structural Points

• The issuer should be distinguished from Mirae Asset Capital, other subsidiaries, and the broader financial group. Group brand and network support the franchise, but they are not explicit guarantees for foreign-currency bonds.
• International rating context includes S&P BBB/A-2, Stable, affirmed on 2025-06-24, and company-disclosed Moody's Baa2 (Stable) for foreign-currency bonds in the 2025 Integrated Report. Domestic ratings in the Integrated Report include AA for corporate bonds and A1 for commercial paper, but these are local-scale ratings and should not be compared mechanically with international ratings.
• Individual foreign bond offering circulars, covenants, change-of-control provisions, cross-defaults, tax provisions, subordination, maturity ladder and current spreads were not reviewed in the May 2026 report set.

Liquidity and Funding View

• Funding is market-based, not bank-deposit based. The balance sheet uses repos, borrowings, CP, client deposits, derivative-linked securities and collateralised transactions.
• Cash and deposits are meaningful, and S&P describes funding sources as diversified, but stress resilience depends on repo haircuts, collateral values, client outflows, CP/bond rollover, legal-entity liquidity, currency mix and committed lines.
• The 1Q26 flash notes that high earnings support capital, but total assets, borrowing liabilities, repos and client deposits expanded; liquidity and leverage should therefore be assessed with earnings, not after earnings.

Credit Strengths

• Large Korean securities-company franchise with significant client assets, WM products, pensions, brokerage assets and overseas operations.
• Material earnings recovery in 2025 and very strong 1Q26 earnings, supporting capital accumulation and rating stability.
• Business diversification across WM, pensions, brokerage, overseas equity trading, investment banking, market making, ETF/government-bond liquidity provision, clearing and overseas subsidiaries.
• S&P's return to Stable outlook indicates that rating pressure from the 2023-2024 weak period had eased as of June 2025.

Credit Weaknesses

• Earnings are market-sensitive and can be affected by turnover, equity prices, rates, FX, valuation gains/losses, derivatives, repo costs, client risk appetite and overseas markets.
• Funding and liquidity depend on market access, collateral and short-term funding channels rather than insured deposit stability.
• Real estate PF, overseas commercial real estate, alternative investments, proprietary investments, structured products and derivative-linked securities remain recurring risk pockets.
• Overseas subsidiaries and acquisitions can diversify earnings but may require capital support, integration costs and local liquidity management.

Rating Watchpoints

• S&P expects the RAC ratio to remain around the high single digits in the current rating case. A sustained decline below 7%, material funding/liquidity deterioration, or deterioration in corporate loans/investments is a downgrade path; a sustained RAC ratio above 10% with stronger risk-management and liquidity track record is the main upgrade route.
• Moody's detailed rating report has not been checked. Use the company-disclosed Baa2 / Stable rating only as a rating line until primary Moody's materials are obtained.
• Domestic AA/A1 ratings support domestic market access, but they are on a different scale from international BBB/Baa2 ratings.

Recurring Analytical Cautions

• Do not annualise 1Q26 earnings as recurring earnings. The quarter is credit-positive, but securities-company revenue includes market-sensitive trading, valuation, derivatives, FX and repo-related components.
• Do not analyse the issuer as a bank-style stable-deposit credit. Repos, CP, borrowings, collateral and foreign-currency liquidity are central to downside analysis.
• Keep issuer-level credit separate from individual bond investment decisions. Security-level work needs offering circulars, maturities, pricing, spreads, currency liquidity and ranking.
• Watch total asset growth relative to capital, especially when high profits may encourage risk-asset growth, shareholder returns, overseas expansion or proprietary investment.

Reliable Core Sources

• Official 2023-2025 4Q financial statements, 2025 4Q earnings release, and 2026 1Q financial statements / earnings release.
• 2025 Integrated Report and 2025 Value-up Report for company profile, ratings, overseas network, shareholder return and risk-management route checks.
• Official "Who We Are" page for company profile figures as of December 2025.
• S&P Global Ratings 2025-06-24 rating action for international rating rationale and monitoring triggers.
• data/mirae_asset_securities_key_metrics.json for reusable extracted earnings, balance sheet, funding, factsheet and ratings data.

Issuer Notes

This file is issuer coverage memory for research and writing judgment. Detailed extracted metrics are stored in data/mirae_asset_securities_key_metrics.json.

Last updated: 2026-06-12

Ongoing Follow-Up Items

• Treat the target issuer as Mirae Asset Securities Co., Ltd., not as the entire Mirae Asset Financial Group.
• Analyse it as a large Korean securities company and market-based financial issuer, not as a commercial bank.
• Monitor whether high 1Q26 earnings were mainly market/valuation driven or whether WM, pensions, brokerage assets, overseas subsidiaries and client-balance revenues can sustain earnings in weaker markets.
• Track S&P RAC ratio direction. A sustained fall below 7% is a downgrade risk; sustained improvement above 10% is an upgrade condition in the S&P framework.
• Monitor repos, CP, direct borrowings, client deposits, cash and deposits, total assets, capital growth, and short-term funding access together.

Unresolved Issues and Items to Check Next Time

• Confirm the official IR posting date / event date for the Q1 2026 results on the issuer IR page in the next update; the flash used 2026-05-12 based on saved official materials and registry context.
• Obtain individual foreign-currency bond offering circulars to confirm issuer, ranking, covenants, change of control, cross-defaults, tax, governing law, subordination and guarantee language.
• Check foreign-currency liquidity, maturity ladder, funding by currency, unused committed lines, entity-level liquidity and collateral portability.
• Obtain detailed exposures and impairments for domestic real estate PF, overseas commercial real estate, alternative investments, NPLs, PEFs and subordinated/equity-like investments.
• Obtain full Moody's detailed rating report and any additional Fitch or other international rating materials if available.
• Check current bond prices, yields, OAS, Z-spreads and relative value versus same-tenor Korean financial institution bonds when security-level work is requested.
• Check full-year 2026 audited financials and the breakdown of Q1 2026 high earnings by brokerage, WM/pensions, overseas subsidiaries, proprietary/valuation P&L, derivatives, FX and repo-related items.

Analytical Cautions

• Do not annualise 1Q26 earnings mechanically. The quarter is positive for loss absorption, but the P&L includes market-sensitive trading, valuation, derivatives, FX and repo-related items.
• Do not interpret client deposits and repos like bank deposits. Funding stability depends on market access, collateral values, haircuts, rollover capacity and client behaviour.
• Treat total asset growth and funding growth as both franchise evidence and potential leverage/liquidity pressure.
• Real estate and alternative investment risk was described by S&P as more manageable in 2025, but that does not mean the risk has disappeared; pockets of overseas CRE and illiquid assets still need monitoring.
• Distinguish domestic AA/A1 ratings from international BBB/Baa2 ratings because the rating scales and investor universes differ.

Report Wording Cautions

• Avoid wording that implies the broader Mirae Asset group guarantees Mirae Asset Securities' foreign-currency bonds unless a specific guarantee is confirmed.
• Use "market-based financial issuer" or "Korean securities company credit" rather than bank-style language.
• When mentioning Moody's, clarify that the detailed Moody's report is not yet checked unless the current update obtains it.
• Keep issuer-level credit view separate from security-level investment judgment, especially where offering circulars and market spreads have not been reviewed.

Follow-Up on Management Strategy, Investment Plans, and Financial Policy

• Watch whether high earnings lead to capital accumulation, shareholder returns, overseas expansion, proprietary investment growth, or risk-asset expansion.
• Monitor Sharekhan integration: profitability, integration costs, capital injection needs, client retention, local regulation and operational risk in India.
• Track Value-up / shareholder-return policy against capital needs and S&P RAC trajectory.
• Check whether the company continues reducing long-term illiquid assets or increases exposure again during favourable markets.

Items to Check for Ratings and Bond Investors

• S&P RAC, funding/liquidity assessment, corporate-loan/investment quality, and rating-sensitivity language.
• Moody's detailed rating rationale and any international rating updates after the 2025 Integrated Report rating line.
• Repo, CP, bond, foreign-currency borrowing and maturity profiles by currency and legal entity.
• Real estate PF, overseas CRE, alternative investments, derivative-linked securities, structured products and proprietary investment exposures.