Mirae Asset Securities Co., Ltd. ($A006800)

Good morning, everyone. Thank you for your participation in the Mirae Asset Securities Earnings Release Conference Call. The agenda for today: We will have a presentation by Mirae Asset Securities, followed by a Q&A session with your participation. [Operator Instructions] From now on, we will start the Q1 2026 earnings release presentation by Mirae Asset Securities.

Yes. Thank you very much for joining us. This is Dong-ho Shin, Head of the ESG and IR team at Mirae Asset Securities. Thank you very much for joining us at our earnings call for the first quarter 2026. Joining us today is our CFO, Mr. Kang-hyuk Lee, who is also Head of Business Innovation Division. Please be advised that simultaneous interpretation in English is being provided for our international investors. Today's call will proceed in the following order: a status update on Mirae Asset Securities' key strategies for the first quarter, a review of overall performance and business results by segment, followed by a Q&A. The presentation materials for the first quarter of 2026 are available on our company's corporate website at ci.securities.miraeasset.com under the regular reports menu. A recording and transcript of today's call will also be posted on our corporate website. Please note that today's presentation contains forward-looking statements based on information available as of the time of preparation. Actual business results may differ due to changes in business environment or strategy. We will now begin with the remarks from our CFO. Please refer to Page 2 of the presentation materials.

Yes. Good morning. This is Kang-hyuk Lee, the CFO and Head of Management Innovation. Thank you for joining us at our 2026 first quarter earnings call. First, I will walk you through our key results for the first quarter. Please refer to Page 3 of the presentation. In the first quarter of 2026, our consolidated pretax income was KRW 1,357.6 billion, and net income was KRW 1,001.9 billion. Both increased by 229% (sic) [ 292% ] and 228% (sic) [ 288% ] Y-o-Y and 77% and 74% Q-o-Q, reaching an all-time high. As of the end of the first quarter, consolidated shareholder equity was KRW 14.1 trillion and annualized ROE was 29%. In Q1 2026, across brokerage, WM, overseas subsidiaries and fair value gains from principal investments, we delivered results exceeding the previous quarter's record high levels. Our overseas subsidiaries recorded annualized ROE of 14% on a post-tax basis, achieving the highest ever performance. Fair value gains from our principal investment portfolio amounted to approximately KRW 804 billion. Please refer to Page 4 for a summary of our performance results. And before we proceed further, I would like to add one clarification regarding our revenue structure. The securities industry is structurally different from manufacturing and other industries in terms of how gains and losses from investment assets are reflected in our financial results. While equity method gains and certain investment items are classified under nonoperating income according to accounting standards, in substance, they represent recurring income reflecting our core capabilities. Accordingly, we believe it is more appropriate to evaluate our fundamental performance based on pretax income and net income rather than operating income alone. In particular, given our global business exposure and high mix of investment assets, consolidated earnings provide a more accurate view of our performance than stand-alone financials. Now then let me move on. Regarding the recent rise in our share prices, we do understand that some view it as a short-term rally. However, this reflects a conventional interpretation of the domestic securities industry and playbook while failing to fully capture the structural nature of our business model. A deeper understanding of our differentiated structure will suggest that the current valuation is a reasonable reflection of our future growth potential while providing indication of significant upside given our growth trajectory. Our differentiated strategy is built on 4 pillars. First, our Wealth Management and Pension business, which are highly competitive and difficult to replicate within a short period, which has seen accelerated growth among the ongoing money move trends. Second, our overseas business, which already accounts for a meaningful share of earnings, has been gaining added momentum, making us the only financial institution in Korea with a significant overseas revenue mix. Third, our balanced portfolio of investments in innovative companies across both domestic and global markets has become a stable earnings base while also delivering standout successes such as our investment in SpaceX. Fourth, our global WM business strategy, which we continue to advance by building out our global investment platform spanning emerging markets such as India, Vietnam and Indonesia, as well as developed markets such as Hong Kong and the U.S. We will now briefly walk you through these differentiated capabilities during our call, which will be followed by more detailed business segment results for the first quarter of 2026. First, in the first quarter, amid continued money move trends from last year, let's look at our WM and Pension business. We saw a clear acceleration of inflows into our platforms, building on the momentum of last year. Mirae Asset Securities has built a stable earnings structure centered on WM and Pension. And this differentiated earnings base, combined with continued growth momentum is expected to further strengthen our competitiveness. Growth in client assets translates directly into margin expansion and serves as a key driver of income growth. Total client assets, including domestic and overseas, increased from KRW 602 trillion at the end of 2025 to KRW 660 trillion at the end of the first quarter and currently stands at KRW 776 trillion. This represents an increase of KRW 174 trillion compared to year-end. This increase exceeds both the full year 2025 increase of KRW 120 trillion and the cumulative increase over the 2023 to 2024 period of approximately KRW 113 trillion. Over the past 3 years, total client assets, domestic and overseas combined have grown at an average annual rate of roughly 18%. As a result, profitability is expected to increase in line with asset growth. While fees vary by asset class, we currently generate stable fee income at an average rate of approximately 60 basis points. If this growth trend continues, we expect WM and Pension net operating revenue to increase to KRW 4.25 trillion at the start next year, an increase of approximately KRW 0.6 trillion year-on-year, before reaching approximately KRW 8.2 trillion by 2030. This will serve as a stable foundation supporting the lower bound of our earnings going forward. Pension assets also continued steady growth. As of the end of last year (sic) [ the first quarter ], Pension assets stood at KRW 64.3 trillion, an increase of KRW 6.5 trillion from KRW 57.8 trillion at the end of last year. This represents approximately 43% of last year's full year increase. At present, Pension assets are now KRW 74 trillion. The increase in the first quarter alone already represents approximately half of our annual net inflow target. In particular, our DC and IRP combined balance reached KRW 36.8 trillion as of the end of the first quarter, ranking #1 across the entire financial industry in terms of total accumulated assets. Second, our overseas subsidiaries are seeing continued accelerating growth as we continue our strategy of supporting the development of the domestic capital market while expanding the contribution of overseas earnings. In Q1 2026, overseas subsidiaries recorded pretax income of KRW 242.2 billion (sic) [ KRW 243.2 billion ]. This represents the highest quarterly performance in history. ROE based on net income post-tax reached 14%. Emerging market WM assets in India, Vietnam and Indonesia reached KRW 79 trillion at the end of the first quarter, with both assets and profitability showing steady growth. In developed markets such as New York and Hong Kong, diversified business lines and investment asset performance continued to strengthen our earnings base. Notably, Hong Kong recorded pretax income of KRW 81.3 billion, already approaching its full year level of KRW 86.3 billion achieved in 2025. New York also achieved KRW 83 billion in the first quarter alone, representing approximately 40% of last year's record high annual performance. Furthermore, our Hong Kong subsidiary has obtained a digital asset retail license, and we're preparing to launch the first global MTS by our Korean securities firm later in June. We aim to expand touch points with global retail clients and expand our WM strategy, currently centered on emerging markets, to key markets, including Hong Kong. Going forward, we plan to progressively evolve into an integrated digital wealth management platform spanning crypto assets, Korean equities and tokenized investments. Third, our globally diversified investment portfolio of innovative companies. After repositioning our portfolio to innovative companies across both domestic and global markets, our portfolio is now more balanced than before. Last year, we reflected approximately KRW 602 billion in fair value gains on investments. And in the first quarter alone this year, we recorded approximately KRW 804 billion in valuation gains. The gains are largely driven by substantial returns from SpaceX-related investments, and we're expecting additional upside upon IPO planned sometime around the end of the second quarter. We continue to deploy capital into new innovative sectors, including both listed and unlisted equities. And notably, gains from listed equities are mark-to-market and therefore, not included in the aforementioned PI valuation gains of KRW 804 billion. Despite market volatility, including sharp declines in March, driven by geopolitical tensions related to Iran, we generated approximately KRW 105 billion in gains from investments in Korean memory, the U.S. semiconductor value chain and China AI-related companies. We secured cornerstone investment opportunities in Hong Kong listed companies such as MiniMax from late last year, recording KRW 155.8 billion investment gains in the first quarter. These cornerstone opportunities are the result of our long-standing global network built through the Mirae Asset Group's expansion efforts. We'll continue to institutionalize and enhance these capabilities to deliver and generate further meaningful outcomes. Lastly, I'd like to comment on our global investment platform and discuss our strategy to build a global platform covering both traditional and digital assets. We are steadily pursuing a strategy that goes beyond the traditional Morgan Stanley style WM model, expanding toward a fully integrated global investment platform. It also incorporates digital asset capabilities similar to platforms like Robinhood. As of the end of first quarter, Robinhood reported total assets of approximately USD 45.5 billion, which is around KRW 65 trillion, and net income of USD 350 million or KRW 510 billion, both lower than our own. However, it is currently valued at a market capitalization of roughly KRW 100 trillion with a PBR of around 7.45x, significantly higher than our valuation of KRW 44 trillion based on common equity and a PBR of around 3x. While there are inherent limitations in directly comparing the 2 companies given the differences in our business structures and geographic scope, Mirae Asset Securities is currently still largely perceived as a traditional brokerage firm. But as our global investment platform business gains further traction and the market begins to recognize our evolution into a fintech and platform-based company, this may be viewed as an indication of meaningful upside in valuation relative to current levels. As a first concrete milestone of this transformation, we plan to sequentially launch a global MTS starting with Hong Kong in June 2026, marking the beginning of our transition into a comprehensive global investment platform aimed to deliver both earnings growth and further valuation re-rating momentum going forward. We're also currently pursuing the acquisition of a U.S. brokerage firm, and we will provide further updates once the process becomes more firm. The U.S. retail wealth management market AUM is approximately USD 59 trillion, which is quite significant. Even a 1% share of this immense market will represent a scale of about USD 590 billion or KRW 855 trillion. While entering the U.S. WM market through such an acquisition of a brokerage firm is a challenging path, even a modest success in such a large market would be highly meaningful relative to the domestic market. Given the ongoing shift towards digital assets and online trading as the dominant channel of choice, we view this as a difficult but not infeasible opportunity. Amid growing expectations that the recent implementation of the Omnibus foreign investor account system will accelerate inbound global brokerage business and create foreign capital inflows into the Korean equity market, the development of our Hong Kong MTS and potential acquisition of a U.S. brokerage firm are expected to play a meaningful role in securing new revenue streams. If realized, they will strengthen our differentiated competitive position. In January 2024, the group established WealthSpot, which is a dedicated AI-driven financial services company, by selecting highly specialized talent within the group. WealthSpot is accelerating the development of AI-based investment products and robo-advisory services. We expect this initiative to generate significant synergies, not only in AI-enabled wealth management services in Korea, but also in building our global investment platform. Next, allow me to cover the detailed earnings results by business division. Let me begin with Brokerage earnings. Please refer to Page 5 of the earnings release presentation. Brokerage fee revenue, driven by higher equity trading volume, increased 38% Q-o-Q to KRW 459.4 billion, renewing an all-time high. Domestic equity brokerage fee increased 72% Q-o-Q to KRW 340.8 billion, while overseas equity brokerage fee decreased 11% Q-o-Q to KRW 118.6 billion. The average fee rate for domestic equities recorded 2.9 basis points, unchanged from the previous quarter, while the fee rate for overseas equities increased 2.2 basis points Q-o-Q to 14.9 basis points. In Q1, average daily trading value in the domestic equity market increased 80.7% Q-o-Q to KRW 66.7 trillion, supported by increased inflows of retail investors recording the highest level in the history of the Korean stock market. In particular, trading value on NXT increased significantly by 120.6% Q-o-Q to KRW 22.8 trillion. Total equity custody assets, including domestic and overseas equities recorded KRW 357.6 trillion. Of this, overseas equity assets decreased 9% Q-o-Q to KRW 47.5 trillion, while domestic equity assets increased 22% Q-o-Q to KRW 310.1 trillion. Margin loan balance recorded KRW 6.9 trillion, remaining at similar level Q-o-Q, and margin loan net revenue, included under interest P&L in our earnings report, decreased 1% Q-o-Q to KRW 91.2 billion. Recently, the global financial market has entered a transition period in which traditional assets and digital assets are converging. In 2026, by sequentially revamping the key services of our MTS, m.Stock, we plan to upgrade the competitiveness of our digital platform to make the transition to m.Stock 3.0. While existing digital platforms focused on securing customer touch points and trading convenience, moving forward, in order to respond to market changes such as extended trading hours, shortened settlement cycles and the introduction of new digital assets, the entire process from customer acquisition to investment and trading, wealth management and product sales can be supported within a single platform to further evolve. As a starting point for expanding into integrated wealth management system, we are renewing our asset inquiry service, My Assets, to better seamlessly connect and advance customers' traditional financial assets and digital assets. In the case of Tokenized Securities, in order to fully commence the business in line with the institutional schedule, we are simultaneously strengthening internal capabilities and external partnership activities for preparation. In addition, by renewing our AI chatbot to strengthen overall business support, including Pension and personalized responses, we plan to reduce the time and effort customers spend using m.Stock. To view market trends and personalized stock information at a glance, we also plan to newly provide AI and database investment information and content through the m.Stock 3.0 UI. Our m.Stock for 4 consecutive months, from last December through this March, ranked first in monthly active users, MAU, maintaining one of the highest levels of customer engagement among domestic securities firms and MTS platforms. Based on stable platform operations and traffic management capabilities, digital transformation and the strengthening of wealth management centered services resulted in actual increases in customer inflows and usage. m.Stock will continue to be positioned as a key pillar, driving our future business growth. Next, let me discuss WM earnings. Please refer to Page 6 of the presentation. In Q1, fee revenue from financial product sales increased 17% Q-o-Q to KRW 112.5 billion, continuing record earnings momentum. In particular, fee income related to the sales of wrap accounts, collective investment securities, and retirement pensions accounted for 41%, 29% and 23%, respectively, of total AUM earnings, respectively, recording all-time highs. Financial product client assets recorded KRW 224 trillion, increasing 6% Q-o-Q. Total client assets combining financial product client assets and equity custody assets increased 12% Q-o-Q or KRW 63.6 trillion to KRW 581.7 trillion, renewing an all-time high. The scale of total client assets serves as a key foundation driving stable and recurring earnings generation. And under the management principle of client returns first, we are focusing on generating client performance while continuously strengthening our mid- to long-term earnings base alongside sustained asset growth. The WM business is evolving into a wealth management platform based on AI and big data. To enable clients to access professional level wealth management services anytime and anywhere, we operate a dedicated organization combining data-driven digital wealth management and PB services and centered on digital PB services, we are also strengthening non-face-to-face and online client service capabilities. And key domestic and overseas investment information provided through AI will expand the target scope from existing equity holders to ETF investors as well. As of the end of March, Pension assets recorded KRW 64.3 trillion and as of current date have surpassed KRW 74 trillion, continuing strong growth momentum. Based on combined DC and IRP balances, we ranked first across the entire financial industry. Next, let me explain the earnings results for Trading and Financial Income. Please refer to Page 7 of the presentation. Trading and Other Financial Income based on a separate basis include gains and losses generated from traditional trading activities such as equities, bonds, derivatives as well as S&T and stand-alone PI. In addition to direct earnings generated through proprietary trading, this category also reflects foreign exchange gain and losses and the IB side valuation and disposal gains and losses on assets. Total Trading and Financial Income recorded KRW 405 billion, increasing 83% Q-o-Q. This includes distribution and dividend income of KRW 111.5 billion and Trading income and Others of KRW 293.5 billion. Bonds balance recorded KRW 42.3 trillion, increasing KRW 2.7 trillion Q-o-Q. In March, as inflation risk expanded due to geopolitical risk, domestic and overseas bond yields rose sharply. Accordingly, we increased hedging on bond-holding positions and operated conservatively, but earnings did not reach the level we had expected for Q1. Going forward, amid an environment of continued high uncertainty and volatility, in order to ensure stable earnings from management, we plan to maintain a conservative operating strategy. In Q1, we actively responded to increased ETF trading volume and heightened market volatility, while expanding domestic and overseas swap counterparties and LP coverage. In addition, including seeding for new listed Global X ETFs in Hong Kong and Hong Kong IPO Arbitrage trading, we identified revenue sources leveraging the group's network. We continue to advance ETF LP and trading algorithm based on overseas networks in Hong Kong, India and other regions. We are expanding IPO and derivative sales opportunities. In June, the launch of the digital asset platform at our Hong Kong subsidiary is planned, and we are exploring related business opportunities while upgrading organizational structures and systems in preparation for extended trading hours in parallel. Next, let me discuss the fair valuation results of major consolidated PI assets. In Q1, resulting from the completion of the merger of an innovative company in which we have previously invested, we reflected roughly around KRW 840 billion of increased enterprise value. However, combining other investment assets, subject to fair value valuation, we recognized losses which resulted in total gains of -- and this is not included in the number that we mentioned before. However, as mentioned earlier, our PI investments in innovative companies also include a substantial amount of listed equities for [ comp ], and they are not included in the fair value. And we have recorded profits of innovative companies and memory companies and semiconductors of KRW 105 billion and investment profits of MiniMax and Hong Kong listed companies of KRW 155 billion. Let me explain IB earnings. Please refer to Page 8. IB fee revenue recorded KRW 26 billion, decreasing 39% Q-o-Q. And geopolitical risk triggered rises in commodity prices and heightened uncertainties became more widespread, resulting in a decrease Q-o-Q. In Corporate Finance, 2 KOSDAQ listings, exercise of warrants plus real estate equities we underwrote and IB lead and management mandates for corporate bond issuance were the revenue highlights. In the case of IPOs, we are targeting 4 KOSDAQ listings within Q2. In the real estate PF market, while short-term liquidity concerns have eased compared to the past as a significant portion of distressed assets has been resolved, we believe structural risks remain. In Q1, due to decline of supply of new high-quality projects, deal sourcing opportunities were somewhat limited, and we are maintaining a cautious stance. Corporate loan revenue, which is included in interest P&L in our earnings report, recorded KRW 27.2 billion, decreasing 2.3% Q-o-Q. The venture capital regulatory ratio set by supervisory authorities for this year is 10%, and we preemptively achieved 16.4% within Q1. Going forward, by continuing to take a leading role in providing venture capital based on the sales capability of our IB division, including deal sourcing, we plan to identify and utilize as many business opportunities as possible linked to venture capital provision. Next, let me discuss the earnings results for our overseas subsidiaries. Please refer to Page 9 of the presentation. Overseas subsidiaries recorded pretax income of KRW 243.2 billion, increasing 22% Q-o-Q, achieving another record earnings high result. Overseas subsidiaries accounted for approximately 18% of total consolidated pretax income. In Q1, ROE based on net income of overseas subsidiaries recorded 14%, achieving a double-digit ROE for the first time ever. While investment asset performance reflected in certain subsidiaries within Advanced region, the Advanced Market Center flow trading business, which we have focused over the past several years, also showed solid growth momentum, further strengthening the recurring earnings base. In Q1, approximately 65% of total assets were representing -- recorded KRW 157 billion valuation gain on investment assets of total overseas subsidiaries pretax income. The contribution of pretax income by major region was composed of U.S. at 34%; Hong Kong, 33%; India, 10%; Vietnam, 5%; and others at 18%. Centered on flow trading and PI investment, advanced markets such as U.S., Hong Kong and Europe accounted for 79% of pretax income, while emerging markets centered on Brokerage and Wealth Management account for 21%. In Q1, there were meaningful achievements centered on the expansion of our global trading platform infrastructure. Global Trading X established to expand the flow trading business in the U.S., obtained a broker-dealer license, strengthening its business foundation. In addition, GTX U.K. and GTX EU in the United Kingdom recorded earnings during Q1, exceeding their full year pretax income from the previous year. As mentioned earlier, in Hong Kong, we are preparing to launch a global MTS in June, as well the first Korean securities firm to do so, and we will gradually advance the establishment of Integrated Digital Wealth Management platform. Lastly, regarding capital policy and shareholder return, we currently are reviewing multiple aspects regarding the shareholder return policy to be applied for the 3-year period beginning 2027, as well as plans for treasury share cancellation following the commitments to the Commercial Act, and we will communicate transparently with the market once specific plans are finalized. This concludes Mirae Asset Securities 2026 Q1 Earnings Release Conference Call.

Now we will start the Q&A. [Operator Instructions] The first question will be by Mr. Doosan Baek from Korea Investment & Securities.

Yes. This is Baek Doosan from KIS. I have 2 questions. First of all, regarding your investment assets. So it seems starting from last year, you continue to see quite positive returns and yields. Earlier you mentioned SpaceX. Considering the upcoming IPO, on a full year basis, how much earnings do you expect from those investments? Also diversification of your portfolio, also reinvestment of the proceeds upon exit, how much earnings or gains you expect from this kind of virtuous cycle, also the return profile of the earnings side and what kind of investment strategy you have? Regarding the integrated MTS, you said that you're going to open services in Hong Kong in June. So through MTS, the investors can access not only Korean stocks, but other digital assets as well? In comparison with your competitors like IBKR, how do you believe that you can be competitive and differentiated versus the peers?

Thank you for the 2 questions. First, in terms of investment assets, let me cover that one first. So in terms of this question. Before I answer, I think we need to clarify what we mean exactly by investment assets because actually, we may need to redefine what we mean exactly. So let me explain briefly the terminology before answering your question. In the past, funds were our investment asset of choice. They were not included on our stand-alone financials. Some of these assets were on our consolidated financials only. So that's why we categorize them under the investment asset category. So these are mostly assets measured at fair value, including real estate or alternative investments. But then 4 years ago or so, starting 2022, our investment assets, rather than real estate property, shifted more to innovative business companies. Among innovative companies, there are unlisted companies and also listed businesses as well. For investments into unlisted entities, similar to real estate investments, they were mostly in the form of funds. And so they are included under fair value assets. But then nowadays, we have quite a lot of listed innovative business companies as well. So we think that marketable investment assets should also be included in the scope. When we say investment assets, they should also be included in the scope as well. Now in the first quarter, we recognized about KRW 804 billion in fair value gains in the first quarter, including the innovative business investment. And then cornerstone investment in Hong Kong for listed companies, we did start from the end of last year. And just in the first quarter alone, we saw about KRW 156 billion in performance from those investments. In terms of the innovative business investments, you talked about our expectations in terms of valuation. The biggest portion, of course, is SpaceX. For SpaceX, according to the media reports, we're talking about USD 1.75 trillion market cap. So if we assume -- well, some are even talking about USD 2 trillion. So for us, it's hard to estimate exactly. But if it does succeed with the IPO at USD 1.75 trillion around the end of June-ish, which is our expectation at the moment, we think maybe we will see about KRW 1.3 trillion in additional earnings from the IPO. And then in terms of investment assets, you asked about our target returns. Well, the returns that we are aiming to achieve for real estate, we do go in mostly with that kind of hurdle in mind. But as far as our investments into innovative companies are concerned, it's not that we approach with a target return in mind. So given the changes in the world, we try to anticipate what will happen, try to find the best fit in terms of what company we invest in. We look at companies with expected upside in terms of growth in the mid- to long term. That is how we select our investment. But for risk management, we do try to diversify our portfolio. And so that is our basic approach or strategy. And more on strategy by country, U.S. and China are our main exposures. We do also look at India as well by sector. We are most interested in AI, semiconductor, aerospace. These are industries with structural growth drivers. And so we have been expanding our allocations mostly for these sectors. One thing I do want to emphasize, and we did comment on it before, but for Mirae Asset Group, for 20 years now with asset management at the center, we have really built up a significant global network and now have established a long-standing track record, which is now returning a virtuous cycle. We're reinforcing the virtuous cycle with good investment returns, leading to even better investments. And our overseas local network is also delivering even added synergy as well. And regarding the second question regarding the Omnibus accounts for foreign nationals, you asked about our strategy, also expected synergy benefits. First, for the Omnibus account scheme, let me cover this first. In our view, with this scheme, I think the biggest change will be improved accessibility for persons outside of Korea, the foreign nationals, they will have much better access to Korean investments. In the past, if the international investor wanted to invest in Korean stock, they had to open a securities account from one of the local securities companies in Korea, go through KYC. But now they will be able to do this very conveniently through their local brokerage firm in Hong Kong. And they can use the local platform and local account that they are used to for easy access into Korean stocks. So it will lower the entry threshold or barrier in terms of investing into Korean stock. Samsung Electronics and Hynix, these are memory semiconductor plays that are drawing more attention given the AI boom. And actually semiconductor, shipbuilding, national defense, military defense, aerospace, these are very strong sectors in Korea. So we are one of only a few countries with many competitive industries, very competitive across the value chains of multiple sectors. So for foreigners point of view, I think this kind of improvement to the institutional system will increase the appeal of the Korean market. And given the limited access to the Chinese market, I think it only adds to the appeal. And foreign investors' investments into Korean equity markets, I think the inflow again can be a big opportunity and a big boost to the business of Korean securities companies. So the Hong Kong MTS launch, again, planned for June, I think it's almost -- we are almost at the final wrap-up stage in terms of our acquisition of a securities firm in the U.S. And these will really combine to deliver strong differentiation versus other competitors. We will move on to the next question.

The next question will be from DAOL Investment & Securities, Jiwon Kim.

I would like to ask about some of the comments made before. There was a lot covered. Moving forward in terms of just guidance for earnings and gains related moving forward, I would like to have a more specific breakdown of the investment portfolio assets for listed and unlisted companies, the breakdown. And AI and semiconductor, such innovative growth industries were mentioned as your focus. Other than that, what would be the industry breakdown? Please share to the extent that you can?

Yes. Thank you for the question. So in the market, I think there is a lot of curiosity over our investment asset portfolio, and we've been receiving a lot of questions under this light. In the past, after the acquisition of [ Veris ] Securities, we would say our investment dry powder was relatively limited. And unavoidably, in the early 2000s and late 2010s, there was a boom in overseas real estate. And as a result, within our portfolio, real estate accounted for a high portion. So for a certain number of years, until 2023, we definitely recorded a negative on our P&L as a result. As of now, we have expanded our equity capital base and also have significant turnaround in our earnings, and we have much more capacity for investment as of now. And our global network has been expanded. And with the strengthened network, we have better accessibility for investment opportunities to multiple blue-chip companies. So as of now, largely looking at the innovative company-related assets, it's around KRW 6 trillion. Alternative assets, including real estate, infrastructure, physical assets account for about KRW 2 trillion, and IB and other sales-related positions account for about KRW 4 trillion. In terms of listed and unlisted companies, out of the innovative companies that I just mentioned, SpaceX, in terms of our investment size, domestic and overseas together, is around KRW 800 billion, and with significant valuation gain currently stands at book around KRW 3.3 trillion. So it accounts for a significant portion. But based on the investment size alone and in the initial phase, SpaceX related, we are subject to an NDA, and this is applicable for most unlisted companies. So it's difficult to open everything. But for the listed companies on a valuation basis, about KRW 600 billion is recognized. So for the unlisted companies, if you do the calculation, out of the KRW 5 trillion corporate investments, it's over KRW 4 trillion. And SpaceX valuation gain, KRW 3.3 trillion is accounted for in that number. And semiconductors and other U.S., China-driven AI drive that we're seeing. As a result, we are having a balanced and diversified portfolio. And please understand that I am limited for providing more details at this point in time. We'll move on to the next question.

The next question will be from [indiscernible] Securities, [ Hansol Kim ].

This is Hansol Kim. I do have one other question. It might be a follow-up to the previous questions and answers provided. Other than SpaceX, are there any additional expected valuation gains from overseas equity investments?

Yes. So as I mentioned before, for the listed stock, we have a diverse investment portfolio. And out of the innovative companies we've made investments so far, SpaceX, this is a merger between 3 companies, X AI, SpaceX, we've actually made investments into them separately, and now they merged into one. So as of now, it looks like there was a significant investment into one company. But realistically, it was separate investments into 3 that were merged into one. So I think corporate investment at SpaceX obviously accounts for a significant portion, but we are still diversified. In terms of valuation gains, obviously, that will come from unlisted companies. There has been some press release on our investment into Perplexity. This is accounting for a considerable size in comparison. And Perplexity also, my understanding is at the current juncture, there are no IPO plans within the year. So there might be actually not much valuation gain to be recognized. So the valuation gain or loss from such stocks, we do expect that there will be considerable gains, but equity investment and non-listed stock valuation gain or loss, at this point in time, it's difficult to speculate exactly how much that size will be for this year.

Okay. Due to the time constraints, we will now conclude the Mirae Asset Securities 2026 Q1 Earnings Call. Thank you for your interest and participation. Should you have any further inquiries, please feel free to reach out to the Mirae Asset Securities ESG and IR team. Thank you very much. [Statements in English on this transcript were spoken by an interpreter present on the live call.]