With Korea Investment & Securities Co. and Mirae Asset Securities establishing a two-top structure of super-sized securities firms, the leadership of Korea Investment & Securities Co. President Kim Sung-hwan and Mirae Asset Securities Vice Chairman Kim Mi-seop, who serve as field commanders assisting each company's chief, is being put to the test.
If President Kim Sung-hwan shows strong breakthrough power with rigorous meritocracy focused on IB (investment banking), Vice Chairman Kim Mi-seop presents the aspect of a "strategist" who values long-term capabilities based on global fund management.
In particular, the IMA (integrated managed account) business that both companies are launching simultaneously this year is expected to be a watershed to gauge the two leaders' leadership styles and management scorecards. The industry expects President Kim Sung-hwan and Vice Chairman Kim Mi-seop, the heads of the two firms, to present their own blueprints for the "post big two" through an "IMA showdown."
The difference in the two leaders' leadership is clear. President Kim Sung-hwan is a classic charismatic leader who makes the case that a securities firm's reason for being is "revenue." Under the philosophy of "sufficiently rewarding where there is performance," he is known for awakening the organization's ferocity and rejecting risk-averse complacency.
The "Kim Sung-hwan-style meritocracy" has already shown up in the numbers. In the first half of last year, Korea Investment & Securities Co. became the first domestic securities firm to surpass 1 trillion won in net profit. Even when a securities firm's annual operating profit exceeds 1 trillion won, it earns the honor of the "1 trillion club," but the company achieved the unusual feat of topping 1 trillion won in just half-year net profit. This trajectory appears set to strengthen through the IMA business. Korea Investment & Securities Co. is emphasizing early dominance of the IMA market as its top priority, backed by large-scale capital and aggressive sales.
Industry attention is focused on whether President Kim Sung-hwan's trademark strong drive can deliver not only quantitative results such as returns, but also qualitative outcomes such as long-term risk management. IMA is a product in which a securities firm guarantees the principal of money entrusted by customers. Some worry that Korea Investment & Securities Co.'s characteristic aggressiveness could be a burden when market volatility increases.
By contrast, Vice Chairman Kim Mi-seop is cited as a meticulous "strategic leader." Rather than being swayed by short-term results, the style puts higher value on building solid infrastructure to deliver sustainable performance over the mid to long term.
Recent moves by Mirae Asset Securities are seen as directly reflecting Kim's leadership. Rather than focusing on domestic IB, the firm early on cultivated global asset allocation and wealth management (WM) as core growth pillars. Recently, it has been active at the forefront of financial innovation, including advanced wealth management incorporating artificial intelligence (AI) technology and digital assets.
Under Kim's strategic leadership, Mirae Asset Securities and Mirae Asset Global Investments are building a "structure that grows stronger over time" as they increase market share and improve results in global markets.
However, this "long breath" can, in a fierce competition, risk turning into a "slow response," which is cited as a limitation. In fact, while Mirae Asset talked up global asset allocation and AI innovation, it was at times outpaced in the heated race for market share by other securities firms' speed offensives.
The reason the two leaders' differences stand out is that their roots and careers diverge. President Kim Sung-hwan, a graduate of Korea University's economics department, rose to CEO after being recognized for performance in the IB field. The IB-specific DNA that emphasizes efficiency and results in the fierce competition waged by salespeople has shaped his leadership.
President Kim Sung-hwan is known for preparing his own presentations and explaining step-by-step goals and directions in detail when meeting employees, such as at management strategy meetings or during nationwide branch tours. His grip on the organization is that strong.
Vice Chairman Kim, a graduate of Seoul National University's economics department who began a career at Mirae Asset Global Investments, is assessed as a strategic leader. He also built an international sensibility by taking the lead whenever Mirae Asset expanded into emerging markets such as Brazil and India.
The market is watching how Korea Investment & Securities Co., accustomed to aggressive IB sales, will manage the IMA's inherent long-term risks, and how much Mirae Asset, which has focused on global expansion, can enhance profitability in the fiercely competitive domestic IB market.
An industry official said, "The IMA business is a stage where the two securities firms must prove the leadership they have internalized over a long period with results," and analyzed, "While pursuing the same business, Korea Investment & Securities Co.'s proactive execution and Mirae Asset's strategic management will show a distinct difference in temperature."