Mirae Asset Securities has announced a landmark shareholder return plan worth a record KRW 635.4 billion.
This comprehensive package is a mix of direct and indirect returns to investors. It includes a cash dividend of KRW 300 per share, a stock dividend valued at KRW 500 per share, and the cancellation of nearly 12 million of its own shares. Canceling shares, also known as a buyback and retirement, reduces the total number of shares in the market. This move mechanically increases the earnings per share (EPS) for the remaining stock, making each share more valuable. This multi-pronged approach shows a sophisticated strategy to boost shareholder value.
So, why such a generous move right now? This decision wasn't made in a vacuum; it's the result of a powerful combination of three key factors that created the perfect environment for this announcement.
First and foremost is the government's 'Value-Up Program'. This initiative is designed to tackle the 'Korea Discount'—the phenomenon where Korean companies are valued lower than their global peers—by pushing companies to improve returns. Recently, new rules took effect that require companies with high dividend payouts to disclose their plans for improving shareholder value, linking these disclosures to tax benefits. This policy directly incentivized Mirae Asset to not just increase its payout, but to structure it in a way that clearly signals its long-term value enhancement strategy.
Second, the company had an outstanding year financially. 2025 was a 'super-cycle' for the Korean securities industry, with trading volumes and commissions surging as the KOSPI index hit record highs. Mirae Asset's net profit reached a massive KRW 1.59 trillion, giving it more than enough capacity to share the success with its investors. This strong performance transforms the return from a discretionary bonus into a credible signal of sustainable earnings power.
Finally, recent changes in corporate governance laws, specifically the amended Commercial Act, played a crucial role. The new laws emphasize board independence and shareholder engagement. By aligning its charter with these new standards—for example, formally renaming 'outside directors' to 'independent directors' and preparing for new voting rules—Mirae Asset is reinforcing its commitment to transparent and shareholder-friendly management. The timing of these governance updates alongside the return package is no coincidence.
In essence, Mirae Asset's record-breaking plan is a masterful strategic move, perfectly timed to capitalize on policy incentives, record profits, and a nationwide push for better governance. It positions the company as a leader in the Value-Up era, aiming to build lasting trust with its shareholders.
- Value-Up Program: A South Korean government-led initiative to boost the stock market by encouraging listed companies to improve corporate governance and increase shareholder returns, thereby resolving the 'Korea Discount'.
- Korea Discount: A term referring to the tendency for South Korean companies to have lower market valuations compared to similar firms in other countries, often attributed to factors like weak corporate governance, low dividend payouts, and geopolitical risks.
- Share Cancellation (or Retirement): The process where a company permanently eliminates shares it has repurchased from the open market. This reduces the total number of outstanding shares, which can increase earnings per share (EPS) and the ownership stake of remaining shareholders.