New Business Performance Risk Management Social Contributions · 2016. 10. 5. · Dear shareholders and customers, in 2016 Mirae asset Daewoo will emerge anew to a brighter future

ManageMent’s Discussion & analysis

Business Performance 06

Risk Management 20

Social Contributions 24

CEO Message 03

Financial RepoRt

Consolidated Financial Statements 26

Separate Financial Statements 32

Independent Auditors’ Report 38

Review Report on Internal Control over Financial Reporting 40

Audit Committees’ Report 41

appenDix

Company Overview 43

History 44

Organization Chart 45

Domestic Network 46

Overseas Network 48

contents

2015 was a significant year for Mirae Asset Daewoo: we achieved profitable growth in all of our business operations,built a more balanced profit and loss structure while strengthening the foundation for sustainable growth.

ceo Message

Dear shareholders and customers,

First, allow me to the pleasure of conveying my heartfelt appreciations for the trust and encouragement you have given us over the years.

Net income for 2015 came to KRW 298.8 billion, 46% more than the previous year and the most in the industry for the year. We, again, made the DJSI World Index, a four-year running mark certifying Mirae Asset Daewoo a sustainable company. In particular, all business divisions reporting a solid profit is the highlight of the year, for it illuminates that the profit and loss structure has been stabilized and the foundation laid firm for sustainable growth.

every step we have taken toward the next decade is complete in itself.

In 2015 Mirae Asset Daewoo stayed focused on being sustainable in growth amid fast changing market conditions. To discard an income structure top-heavy with brokerage and thus vulnerable to frequent market swings, we concentrated on improving our competitiveness in wealth management and corporate investment banking.

As one of such efforts, we established a ‘PB Academy’ and trained talents in the intricacies of private banking. In addition, through enhancement of collaboration among all business divisions, including the industry’s best performing trading house, we sought and improved product and services quality.

As a result, our customer base is expanding rapidly. We set a company record in financial product assets, ending the year at KRW 65 trillion, and multiplied personal pension accounts by 982% in 2015.

In investment banking, after successfully lead-managing the IPO of Cheil Industries in 2014, we were also selected as a lead-manager for the Lotte Hotel’s IPO in 2015, thereby further solidifying our leadership in a key market. In addition to extending our IB expertise to promising small and mid-sized companies, we diversified revenue sources by expanding the business range to include asset securitization, acquisition finance and other investment finance sectors.

In trading, we continued our unrivaled dominance, not only improving the 2014 performance in all sectors—from fixed income to derivatives and proprietary trading—but also achieving the best performance yet and further diversifying profit sources.

Our overseas subsidiaries marked improvement as well. We focused on overseas assets and alternative investment in developed economies while striving to become a full-service securities firm in Indonesia. By implementing strategies developed to the characteristic of different regions, we achieved both qualitative and quantitative growth.

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Dear shareholders and customers, in 2016 Mirae asset Daewoo will emerge anew to a brighter future.

This year, the financial market is expected to become more vulnerable to growing concerns over China’s slowing growth, U.S. interest rate hikes, raging competition across the industry, and other uncertainties. However, Mirae Asset Daewoo will turn these challenges into growth opportunities. Breathing “CreActive”, the new motto professing our will to be creative and active in how we think and act, we will practice creative management and sharpen our competitive edge.

creactive captures how we plan to adapt to and thrive in the new financial environment.

Financial possibilities are available to anyone, anywhere or anytime. Technological developments are bringing down boundaries between industries, resulting in new challenges for the financial industry. Neither accepted methods nor standard actions will be of much use for ceasing the new opportunities; which is why Mirae Asset Daewoo will seek new challenges and embrace change by thinking outside the conventional framework of finance, from pioneering new markets and to delivering innovative products and services.

creactive paves the way over the low-growth quagmire toward sustainable growth.

Our core strengths lie in our strong customer base and in the can-do competency of our employees. Low growth and an aging population have combined to push financial investment companies to require higher level of specialties, setting a new paradigm for wealth management. Accordingly we will seek shared growth to grow customer assets and, at the same time, improve our financial health, based on the distinctive expertise and customer-focused mindset we have cultivated over the years. The insight thus developed will help Mirae Asset Daewoo’s employees grow into financial experts, with a philosophy of life and a partner, who deliver greater value to customers.

creactive runs through our distinctive corporate culture.

We have taken on countless challenges, setting in the process many firsts and earning kudos for our pioneering role. Our corporate culture, a fusion of the intercommunication, passion and confidence, is a driving force which is more competitive than any performance figures can imply. To bring such a power source to its fullest potential, we will adopt innovative human resources management, compensation and relevant systems, and keep improving them.

In 2016, we are facing a new business environment and expecting many changes. We will neither fear challenges nor simply respond to change. Being Mirae Asset Daewoo, we will lead change through creative thought and action. Let us look forward to 2016 and see Mirae Asset Daewoo lead the future of finance through a whole new dimension of innovation.

Thank you.

CEO & Chairman of Board of Directors,

Mirae Asset Daewoo

Sungguk Hong

04 Mirae Asset Daewoo 2015 Annual Report

05

Mirae asset Daewoo

MD&AMAnAgEMEnt’S DiSCuSSiOn & AnAlySiS

Business Performance 06

Risk Management 20

Social Contributions 24

BAlAnCED gROwtH

Growing in both quality and quantity, blending soundness and profitability, balancing profit and loss – these are some of the meaningful marks of growth Mirae Asset Daewoo left in 2015.

Business environment

stock and Fixed income Market Review

The Korea Composite Stock Price Index (KOSPI) rose 2.4% year-on-year in 2015, but, with Korean Gross Domestic Product (GDP) registering just 2.6% as a result of the global economic slowdown causing stagnant exports, KOSPI has still not climbed back to its all-time highs reached in the second half of 2011.

Small- and medium-capitalization stocks remained strong in 2015, with the medium-capitalization stock index and small-capitalization stock index up by 20.8% and 19.7%, respectively. The large-capitalization stock index, however, fell by 1.2%. Shipbuilding, steel, transport, and construction sectors were weak as a result of China’s economic slowdown. In contrast, the health care sector benefited from substantial technology exports, and consumer staples enjoyed a strong performance as well. Strong spread of core chemical materials rose due to falling oil prices, resulting in rising stock prices in the energy and chemical sectors.

The Korea Securities Dealers Automated Quotation (KOSDAQ) index soared 25.7% during the year, in line with the strong performance of small- and medium-capitalization stocks.

Foreign investors sold net KOSPI holdings worth KRW 4.4 trillion, and Korean institutional investors and individual investors sold net KOSPI holdings of KRW 0.5 trillion and KRW 0.4 trillion, respectively. Other corporate bodies were net buyers of KRW 5.3 trillion worth of KOSPI stocks as a result of treasury stock purchases by major conglomerates, including Samsung and SK. In the KOSDAQ market, foreign investors and institutional investors recorded net selling of KRW 0.3 trillion and KRW 0.2 trillion, respectively, while individual investors were net buyers of KRW 0.5 trillion.

Trading volume of stock index futures was up 4.3% in 2015. This was seen as a reaction to plummeting trading volume to nearly reach the structural bottom since 2011, rather than actual improvements in market conditions. There was also an increase of 1.0%p year-on-year in intrinsic volatility, which was at a record low in 2014, and the percentage of trading by individual investors was stable at around 26.6%. Trading volume was up by 3.4% year-on-year for the same reasons.

Business performance

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Interest rates in the bond market fell in line with continued slow growth in the Korean economy. Exports fell 10.5% compared to the previous year due to slow global demand, and domestic demand was severely negatively impacted by the MERS (Middle East Respiratory Syndrome) outbreak in May 2015. In response, the Bank of Korea twice cut the base rate, and market interest rates dropped to all-time lows.

Major changes in the Financial system

In 2015, the Financial Services Commission moved forward with financial reforms to promote Korean capital markets.

As the system to simplify the transfer of pension savings accounts was implemented on April 27th in 2015, clients can now easily transfer their account to another company while maintaining the same pension savings tax benefits, by only visiting a financial company to which they want to switch. This increases choice for clients, and will promote long-term investment. With a prolonged period of low interest rates forecast, fixed-rate products are not enough for post-retirement life, and more clients are moving to securities firms’ Individual Retirement Pensions (IRP), which offer higher earnings rates.

On June 15th, 2015, the daily limit on stock price movements was raised from ±15% to ±30% in the KOSPI and KOSDAQ markets. This measure is aimed at preventing potential market disorder and restoring order in a trading environment and helping the market better set the appropriate price in accordance with corporate values. In addition, price stabilization mechanisms were improved to help block sharp price movements during a severe market shock; these mechanisms include Volatility Interruption (VI) and Circuit Breakers (CB).

In order to promote the derivatives market, the Korea Exchange listed Mini KOSPI 200 futures and options and KOSDAQ stock futures as new derivatives products on July 20th and August 3rd, respectively. On October 5th, it also listed dividend index futures and Chinese Yuan futures.

executive overview

Mirae Asset Daewoo’s net operating revenue in 2015 was KRW 1,004.7 billion, with KRW 403.1 billion in operating income, and KRW 298.8 billion in net income. These figures were all better than the previous year, thanks to a rebound in performance from our brokerage business as stock exchange trading volumes increased, and balanced growth among all our businesses, including Sales & Trading (S&T), Investment Banking (IB), and Wealth Management (WM).

trading in the Korean Markets(Unit: KRW trillion)

Description Fy2015 Fy2014 Fy2013

Average daily trading volume

KOSPI 5.4 4.0 4.0

KOSDAQ 3.5 1.9 1.8

ETF 1) 0.7 0.7 0.8

ELW 2) 0.1 0.1 0.1

total 9.7 6.7 6.7

Market turnover breakdown by investor type

Individuals 67.5% 58.9% 59.6%

Foreigners 17.7% 22.1% 21.3%

Institutions 14.8% 19.0% 19.1%

1) ETF: Exchange Traded Funds2) ELW: Equity Linked Warrant

summarized statements of comprehensive income(Unit: KRW billion)

Description

Fy2015(Jan. 1, 2015

~ Dec. 31, 2015)

Fy2014(Jan. 1, 2014

~ Dec. 31, 2014)

Fy2013(Apr. 1, 2013

~ Dec. 31, 2013)

Net operating revenue 1,004.7 798.7 362.9

Brokerage 360.5 236.6 178.3

Wealth management 112.3 97.0 73.4

Investment banking 86.9 58.8 43.4

Sales & Trading 271.8 214.9 37.6

Interest income 142.1 157.5 83.8

Others 56.6 54.9 (31.8)

Commissions expenses (25.5) (21.0) (21.8)

SG&A expenses 601.6 527.9 398.3

Operating income 403.1 270.8 (35.4)

Non-operating income (14.5) 3.0 (0.6)

income beforeincome tax 388.7 273.8 (36.0)

Income tax expenses (89.8) (68.0) 7.3

net income 298.8 205.2 (29.2)

* Based on K-IFRS consolidated financial statements

Net income represents the net income/loss attributable to equity ownership of controlled entity

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Brokerage Business

Revenue from our brokerage services rose KRW 123.9 billion compared to the previous year, to KRW 360.5 billion. This was attributable to a recovery in trading volumes, and a year-on-year rise of 0.4%p in turnover market share. In contrast, our commission market share was down by 0.1%p as a result of an increase in lower margin trading, such as Direct+, a service whereby we visit customers to open their accounts.

performance by sector in 2015

Retail Brokerage _ Our retail brokerage market share rose thanks to a year-on-year rise of KRW 3 trillion in the daily average trading volume and an 8.6%p increase in portion of individual investors. Our commission and turnover market shares rose 0.4%p and 0.9%p, respectively.

There was a substantial increase in our turnover market share, attributable mainly to an expansion in our customer base as a result of a diversification of our channels, including offline and the Home Trading System (HTS), and Direct and the Mobile Trading System (MTS). Since September 2013, we have offered a service whereby our staff visit customers to open their accounts once an application has been submitted by the customer. In its first year of implementation, the Direct+ channel market share was 0.7%, and continued to rise to reach 0.9% in 2014 and 1.5% in 2015.

Domestic Wholesale Brokerage _ Mirae Asset Daewoo has earned a reputation with its major corporate customers as the nation’s best wholesale broker, thanks to highly experienced brokers who offer distinctive customer services and traders with the ability to execute important deals. In 2015, our relative market share for domestic wholesale brokerage turnover was 4.4%, making us once again the market leader, even without having a major asset management affiliate. This achievement was enabled by increasing the number of institutions we do business with, and developing new sources of revenue.

international Wholesale Brokerage _ Our relative market share for international wholesale brokerage fell by 0.7%p to 2.5%. However, overall revenue went up around 7%, reflecting improvements in profitability as a result of greater revenue diversification, including Hong Kong ELWs, block deals, and IPOs.

pBs _ In the area of Prime Brokerage Service (PBS), Mirae Asset Daewoo serves as the prime broker for eight major asset managers and 12 Korean hedge funds as of the first quarter of 2016. We provide a comprehensive range of services for hedge funds and professional investors.

Brokerage revenue was KRW 360.5 billion, up 52.4% over the previous year. This was the result of recovery in trading volumes and our active response to market changes such as strong performances by small- and medium-capitalization stocks and the KOSDAQ market. There were year-on-year increases in both commissions and turnover market share in the retail sector. We also expanded our customer base by widening sales channels.

WM revenue rose 15.8% to KRW 112.3 billion. Our product line-up is continually adjusted to reflect customer needs and market trends, and now includes unlisted stock trusts, Mongolian high interest rate Certificates of Deposit (CDs), and ‘Special Repurchase Agreements (RP)’. Our total financial product sales assets reached a record high at the end of 2015, at KRW 65 trillion, as all our financial product sales assets rose last year, including wrap accounts, mutual funds, and trusts.

IB revenue was KRW 86.9 billion, a sharp rise of 47.7% over the previous year. We strengthened our position in traditional financing markets such as Initial Public Offerings (IPO), where we led the listing of several cosmetics-related companies in 2015, including TONYMOLY, It’S SKIN, and Yonwoo, and the issuance of corporate bonds. We were chosen as lead manager of Lotte Hotel’s IPO, which is expected to be the biggest Korean IPO of 2016. We also diversified our sources of revenue by expanding to include investment finance, such as asset securitization and acquisition financing.

S&T revenue recorded KRW 271.8 billion, up 26.4%, helped by favorable conditions in the Korean bond market and our own preemptive strategies, including rapid response to a sharp rise in demand for derivatives-linked products. As a result, Mirae Asset Daewoo had the highest share of the issuance market, and also saw both revenue diversification and strong performance in our alternative investment business.

Interest income was down 9.8% in 2015, to KRW 142.1 billion. This was mainly attributable to a one-off issue in 2014, the dividend income of KRW 28.7 billion from Daewoo Capital Corporate Restructuring Vehicle. Excluding this, interest income grew thanks to an increase in the average balance of loan assets such as margin lending.

Client assets rose by KRW 6.3 trillion year-on-year in 2015, to reach KRW 142.9 trillion. This was driven mainly by annual growth of nearly 20% in financial product sales assets and the number of High Net Worth Individuals (HNWI) with investments of KRW 100 million and above. In June 2015, there was a withdrawal of assets amounting to KRW 15.5 trillion in relation to the expiration of Cheil Industries’ lockup period, which Mirae Asset Daewoo managed for its IPO. As a result, brokerage assets were down by KRW 3.4 trillion, to reach KRW 77.9 trillion.

As of the end of 2015, Mirae Asset Daewoo’s total assets and total liabilities stood at KRW 34,841.9 billion and KRW 30,456.6 billion, respectively, with KRW 4,385.3 billion of total shareholders’ equity.

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52.4%year-on-year increasein brokerage revenue

15.8%year-on-year increase

in wM revenue

47.7%year-on-year increase

in iB revenue

Revenue by Business in Fy2015

Brokerage Market share(Unit: %)


Company-wideCommission 6.5 6.6 6.2

Turnover 5.7 5.3 5.2

RetailCommission 5.6 5.2 5.0

Turnover 4.4 3.5 3.3

Domestic wholesale

(Relative)Turnover

4.4 4.7 5.0

International wholesale

(Relative)Turnover

2.5 3.2 2.7

Brokerage

Wealth m

anagem

ent

Investm

ent b

ankin

g

Sales & T

radin

g

Interest income

* Revenues before commission expenses; Excluding other net operating revenues; As of the end of 2015

27.9%

14.6%

8.9%

11.6%

37.0%

There were substantial profitability improvements in margin transactions and brokerage services in 2015. We strengthened our product line-up by expanding the underlying assets of Over-The-Counter (OTC) derivatives to include foreign stocks and fixed income. We also adopted various new business models, including overseas margin transactions and Direct Market Access (DMA) swap. We also took the lead in participating in the amendment of the Capital Market Act and the reform of the private equity fund system.

outlook and plan for 2016

Retail Brokerage _ To develop a distinctive edge against our competitors, we hold the ‘Morning Meeting’ through our internal IPTVs every morning, and the ‘PB Forum’ seminar every quarter, so that our staff can improve their knowledge of investment-related issues. We will continue to host seminars on market conditions, industries, and stocks, in an effort to improve competitiveness of sales personnel. In addition, we will carry out customer events and promotions on overseas stock markets, as these markets will steadily be more important sources of revenue for the retail sector.

Domestic Wholesale Brokerage _ Stiffer competition is resulting in greater emphasis on sales skills and top quality research. We are therefore improving our staff’s expertise in sales and providing distinctive research contents, and looking to generate synergy with our retail business network to win general corporate businesses. We will also develop new markets, such as Private Equity Fund asset management, and aim to strengthen our fixed income network with foreign-affiliated firms and insurance companies.

international Wholesale Brokerage _ There has been a steady rise in the percentage of program trading undertaken by foreign investors, with the market share of the top six firms in Korea down over the last three years, from 19.6% in 2013 to 14.5% in 2014 and 11.9% in 2015.

We are actively marketing new products to enhance profitability, and focusing our business on large global institutions. We will therefore collaborate with our Research Center to host Non-Deal Roadshows (NDRs) on Korean companies for overseas institutional investors, and work throughout the company to attract block deals and to participate in IB deals such as IPOs. We will also seek new clients for Hong Kong ELW and DMA trading, which have been shown increasing trends recently.

pBs _ There is a continued inflow of funds into hedge funds, seen as a good alternative investment in an era of low interest rates and low growth. Pension funds and institutional investors are likely to continue to invest in hedge funds. Reforms in the private equity fund system have resulted in lower barriers to entry in the hedge fund market, which is why it is forecast to continue to grow. In such favorable market environment, we will look to create new sources of revenue, and maximize profits as an unrivaled prime broker.

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09

wealth Management Business

WM revenue grew by KRW 15.3 billion year-on-year to KRW 112.3 billion, thanks to consistent sales of a diverse range of products. Issuance of Equity-Linked Securities (ELS) and Derivative-Linked Securities (DLS) reached KRW 13.3 trillion. Wrap account and RP sales assets stood at KRW 16.1 trillion and KRW 6.9 trillion, respectively.

Retail financial product sales assets rose KRW 3.6 trillion in 2015 from the previous year. Total financial product assets went up KRW 9.7 trillion from the end of 2014 to reach KRW 65 trillion, making us the industry leader.


Marketing strategies _ In 2015, Mirae Asset Daewoo engaged in targeted customer marketing to promote its personal pension sales. This included marketing linked with the Coming-of-Age Day in May, and the year-end tax adjustment period in December. We became the first financial company in Korea to partner with an education company, offering learning contents benefits when a grandparent or parent subscribes to a pension savings product in the name of a child aged less than 19.

Every year, we host cultural performances for customers on the anniversary of Mirae Asset Daewoo founding. In 2015, on our 45th anniversary, there were performances in five major cities. Through the nationwide ‘WM Stock Market Forum’, we sought to provide timely investment strategies to respond to rapid changes in the market environment. We also became the first to host a financial education program, ‘Insight Lecture Concert’, through which we provided undergraduate students with lectures on various themes, such as vision, future outlook, and choosing a career. We expanded sales points in new business districts to increase customer contact, relocated sales points where necessary, and improved the layout and comfort of sales points to make customers feel more welcome and promote operational efficiency.

consulting services _ Mirae Asset Daewoo offers customized consulting services for HNWI with assets of KRW 100 million and above. We provided our HNWI customers with useful investment advice in 2015, including WM portfolio strategies based on investor type, taxes, and a report on planning and retirement issues. Experts on subjects such as investments, retirement, taxes, and real estate, offered consulting and seminars for customers. We also provided a family office service to Ultra High Net Worth Individuals (UHNWI) with assets of KRW 3 billion and above. The ‘Insight Forum’ was created in 2015 to provide these customers with wealth management information on issues such as global investments and wealth transfer strategies, on a regular basis.

Mirae Asset Daewoo offers a consulting service called ‘Partners Club’ to help small and medium enterprises (SME). SMEs are growing in importance, but they do not have adequate access to financial services provided from a securities company; however, through Private Investment Banking (PIB), a new concept that combines wealth management and IB, we are offering consulting services on improving corporate value and branding, and increasing the potential for growth for SMEs. In 2015, we added a PIB curriculum to our PB training course, and in April we added two more PIB Centers to have four centers, in an effort to expand the number of target companies. As a result, Partners Club now engages with 253 small giants.

Bancassurance _ Bancassurance is one of our leading products for retirement and tax planning, and a stable source of revenue for the company. In 2015, we were the industry’s No. 1 in bancassurance sales, as measured by the first premium, for the second year in a row, reflecting our ability to suggest the right products and provide the right consulting for customer needs.

Domestic Wholesale Financial products _ We sell a wide range of products to major pension funds, public organizations, insurance companies, and general companies in Korea. We strive to offer top-quality products that satisfy the diverse needs of our institutional customers. In addition, we are developing our sales capacity and collaborating with relevant company departments and major asset managements in Korea and overseas. Thanks to these efforts, our financial product sales assets in 2015 totaled KRW 39.2 trillion, the highest in the industry.


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pension products _ Retirement pension assets grew strongly, by 25.1%, increasing from KRW 998.8 billion at the end of 2014 to KRW 1,249.9 billion at the end of 2015. Defined Contribution (DC) and Individual Retirement Pension (IRP) assets rose significantly, from KRW 525.9 billion at the beginning of the year to KRW 717.7 billion at year-end, as a result of attracting many retail customers. Defined Benefits (DB), DC, and IRP client numbers reached around 274,000, 14,000, and 6,000, respectively. Because retirement pensions are a commission-based business, their rapid growth is helping us strengthen our foundation for stable growth.

Personal pensions grew massively in 2015. The number of accounts rose 981.6%, from 4,344 to 46,985, with assets up 316.3%, from KRW 40.5 billion at the end of 2014 to KRW 168.6 billion at end-2015. This made Mirae Asset Daewoo the industry’s No. 1 in net growth in the number of accounts.


Marketing strategies _ Mirae Asset Daewoo will cont inue to undertake market ing that aims to expand our customer and asset base. This year, our headquarters will take the lead in strengthening direct customer marketing activities to support the inflow of new customers and assets, and there will be more focus on personal pension sales. New products such as the Individual Savings Account (ISA) and foreign stock-only tax-free fund will help us to build a long-term customer and asset base.

We will continue to host the ‘Insight Lecture Concert’, launched last year, to support young talent and communicate with potential customers. A new ‘Financial Education Support Team’ will be created to take part in the financial education project being carried out by the Financial Supervisory Service. This team will plan our ‘1 Branch-3 Schools’ financial education program, and will perform an important role in Mirae Asset Daewoo becoming a leading firm in financial education in Korea.

consulting services _ We are targeting an increase in the number of Partners Club members from the current 253 to 1,000. To this end, we are always looking to identify competitive small giants and improve our consulting services. We will collaborate with corporate Relationship Managers to further promote PIB sales.

Domestic Wholesale Financial products _ Institutional clients’ product requirements are becoming more diverse and complex, which is why our products have to be competitive, and why we strive to offer both customized products based on customer needs and new types of products. We will sell offshore products, including offshore hedge funds and PEFs, to satisfy increased demand for offshore alternative investment products. We will also collaborate with our overseas subsidiaries to expand the supply of offshore products in Korea.

pension products _ We expect strong performances from both our retirement pension and personal pension businesses in 2016. We are looking for more than 50% growth in the retirement pension business, and we aim for our personal pension business to become the market leader, as measured by the number of accounts. The pension market is expected to grow rapidly as a result of social changes and an aging population, as well as the Korean Government’s promotion of private pensions. We will therefore strengthen our pension business, to make it a stable source of revenues.

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WM assets & Revenue

▒ WM assets1) (Unit: KRW trillion)

▒ WM revenue (Unit: KRW billion)

Fy2015

FY2014

FY2013

65.0

55.3

52.173.4

97.0

112.3

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1) WM assets: Financial product sales assets

982 %year-on-year growth

in number of accounts

316 %year-on-year growth in assets

achievements in personal pension 6

* As of the end of 2015

investment Banking Business

IB revenue grew KRW 28.1 billion year-on-year in 2015, to reach KRW 86.9 billion. We maintained our position in traditional financing markets such as IPOs and corporate bond issuance, and also diversified our profit sources to include investment finance, such as asset securitization and acquisition financing.


equity capital Markets _ Mirae Asset Daewoo has been chosen as the lead manager for Lotte Hotel’s listing on the Korea Stock Exchange, which is expected to be the biggest Korean IPO of 2016. In 2015, we successfully led IPOs for several cosmetics-related companies, including TONYMOLY (KRW 94.1 billion), It’S SKIN (KRW 161.2 billion), and Yonwoo (KRW 60.6 billion). We offered our clients more than just a standard IPO, and provided distinctive and vital advice on financing, business planning, and business strategy.

We served as lead manager for several paid-in capital increases, including Hyundai Elevator (KRW 277.5 billion) and Lotte Insurance (KRW 150.7 billion), and participated in an underwriting group for Korean Air (KRW 498.6 billion) and Hyundai Merchant Marine (KRW 237.3 billion). We also participated in the underwriting group for Hyundai Merchant Marine’s issuance of Bond with Warrant (BW), the first case to be launched since bonds with detachable warrant issuance again became permissible in Korea. We were also lead manager for the KRW 50 billion Convertible Bond (CB) of Hanwha Galleria Timeworld, expanding our revenue sources.

In the area of block sale, we successfully executed many deals, including KEPCO’s disposal of equity holdings in KEPCO KPS (KRW 67.9 billion), KDB Bank’s disposal of equity holdings in Kumho Petrochemical (KRW 324 billion), KTB New Growth Engine Private Equity Fund’s disposal of equity holdings in JW Pharmaceutical (KRW 53.5 billion), Hyundai Samho Heavy Industries’ disposal of equity holdings in POSCO (KRW 234.3 billion), and Dongbu Steel’s disposal of equity holdings in Dongbu HiTek (KRW 52.2 billion).

Debt capital Markets _ We were lead manager of corporate bond issuance for Kia Motors (KRW 500 billion), E-mart (KRW 500 billion), and SK Energy (KRW 350 billion), which resulted in a year-on-year increase of 45% in our corporate bond issuance performance. In the private equity market, we served as a sole lead manager for hybrid bonds from Hyundai Commercial worth KRW 80 billion. We remained leader in the public Asset Backed Securities (ABS) market, despite not having the captive market that many bank-affiliated securities firms enjoy.

corporate investment Finance _ In structured financing, our Project Financing (PF) asset-backed securities issuance was up about 40% year-on-year in 2015, to about KRW 10 trillion. This was driven by government measures to stimulate the real estate business and low interest rates. We participated in PF deals from leading construction companies, including Yeongjongdo P-city, Hapjeong 3 Zone, and Yeongjong Xi (premium brand name of apartment by GS E&C), improving our profitability.

We are seeking to increase revenues by diversifying the scope of underlying assets. We therefore participated in deals such as the Asset Backed Short-Term Bond (ABSTB) of fund beneficiary rights for Hyundai Merchant Marine’s subordinated vessel collateral, KT Rental’s acquisition financing-related Total Return Swap (TRS) securitization and bridge loan, an ABSTB of beneficiary rights securitization for the Asiana aircraft subordinated fund, and deposit securitization for land sold by the Korea Land & Housing Corporation.

In Private Equity (PE), we established a Private Equity Fund (PEF) for large M&A deals, and built our position as a leading General Partner (GP) in the securities sector. We created three new funds in 2015, resulting in a considerable increase in Assets under Management (AUM). We also strengthened our Limited Partner (LP) network, and our PE business as a whole by establishing several funds with the National Pension Service, Korea’s largest LP.

There is considerable potential in the corporate loan market as a result of eased credit regulations for securities firms, including allowing foreign currency credit lines and increasing limits on credit lines. There were many deals worth more than KRW 1 trillion in 2015, including the disposal of Homeplus (KRW 7.2 trillion) and the ADT CAPS refinancing (KRW 1.5 trillion), which led to a sudden expansion in the acquisition financing market. We participated in LOEN Entertainment’s subordinated loan and Celltrion’s acquisition financing-linked Exchangeable Bonds (EB), thus building a track record to compete for participation in future major deals. We also focused on real assets, an area which has recently seen strong investment demand, and successfully completed Emirates’ aircraft financing and foreign currency loan-related deals.

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project Financing _ The PF market was difficult again in 2015, with less new power plant construction and sluggish investments in new & renewable energy owing to lower profitability forecasts. Notwithstanding this, we were able to continue to implement new projects, including the Gwangju fuel cell power generation project (KRW 84.5 billion), financial advisory and arrangement for Commerce & Industry Energy’s refinancing (KRW 85 billion), and a wind power generation project in Gimnyeong, Jeju Island (KRW 78.3 billion).


We will build a specialized IB House for mid-sized companies and small giants while maintaining our market dominance in the traditional IB market. We will use our PIB sales points, covering retail and corporate customers as well as Korea’s largest financial business network, to identify measures that will meet the financing needs of mid-sized companies and small giants. We will also expand our investment finance business, based on our considerable capital strength, and increase our advisory and finance arrangement business, all in efforts to diversify our range of products and develop new sources of revenue.

sales & trading Business

2015 saw both favorable and unfavorable conditions in Korea and abroad. The Korean fixed income market rallied, but there was a sense of anxiety about US interest rate hikes. Demand rose substantially for derivatives-linked products, but then revenue growth slowed because of falls in Korean and overseas stock markets in the second half of the year. Against this mixed backdrop, our S&T revenue rose KRW 56.8 billion over the previous year to reach KRW 271.8 billion. This was a record performance, and helped the company achieve balanced growth among sectors in its S&T business.


Fixed income _ As well as concerns about interest rate hikes in the US, there was increased confusion over the Bank of Korea’s currency policy and the direction of the Korean fixed income market in early 2015. However, we were able to generate strong revenue by forecasting the additional base rate reduction, and implementing preemptive strategies to take advantage of it, thanks to our continued, in-depth market analysis. We used yield curve, credit, and derivatives strategies effectively, and focused on risk management in the second half of the year, when a contraction in global liquidity began. There were difficulties in offshore fixed income investment, such as a sharp rise in credit spreads due to economic concerns in emerging countries and the US interest rate hike. Nevertheless, our flexible responses and active risk management have enabled us to beat both our competitors and the market benchmark.

8

Fy2015 league table

(Unit: KRW billion)

category sub category lead Manager Market share Rank

ECM

IPO* 469.0 11.9% 3

Rights offering* 214.1 6.7% 5

Equity-linked bond* 50.0 12.6% 3

total 733.1 9.7% 3

Block sale** 288.4 19.2% 2

DCM

Corporate bonds* 6,465.8 15.0% 3

Financial bonds* 5,682.5 17.1% 2

ABS* 3,292.9 16.7% 3

total 15,441.3 16.1% 2

* Source: thebell league table FY2015** Block sale figures represent the Korean IB ranking, and are not included in the ECM total above

7

13

Derivatives-linked products _ With the market demand for medium-risk, medium-return products in an era of persistently low interest rates, we offered foreign currency-denominated products, long-term products with a maturity of ten years or more, and short-term deposit products. These earned us the highest market share in the derivatives-linked product market. We also launched syndicated Exchange Traded Funds (ETF) as a new source of revenue.

Global stock markets plummeted in the second half of 2015, leading to increased volatility in trading income. To maintain income stability, we therefore reformed our investment strategies and increased the globalization of our underlying assets by using overseas ETFs that follow major indices overseas, as well as global banks’ credit event and volatility indices. We also released new products that have domestic hedge funds as the underlying assets.

alternative investment _ In 2015, Mirae Asset Daewoo delivered record performance in Alternative Investment (AI) and diversified our revenue sources by making focused investments into new, outstanding AI projects with a stable structure and great potential for profits, which resulted in increased investment size and improved profitability. We diversified away from our previous heavy focus on real estate by investing in various forms of substitute investment assets, such as overseas structured notes and aircraft, and generated additional revenues through follow-up management of non-performing loans.

In our Principal Investment (PI) business, we concentrated on private equities at home and abroad, and the rate of return on our invested position reached 18%. We improved the risk-adjusted rate of return by establishing a short- to long-term asset portfolio of US structured notes, and we are now diversifying our strategies to include IPOs of successful domestic private equities and early withdrawal from mezzanine investments.

We created the Proprietary Trading Department to strengthen the specialist trading function that aims at absolute revenue generation. New internal systems will support the unit, including improvements in investment strategies, overhauling our analytics skills, and adding to personnel.


The first US interest rate hike came at the end of 2015, and in early 2016, there was a stock market crisis in China. With oil prices continuing to fall, and concerns over poor economic growth, there are many forecasts for unfavorable financial markets in 2016. Mirae Asset Daewoo will therefore pursue stable profits from investments based on prudent risk management and a diversified portfolio of steadily expanding areas of investment, always aiming to discover new investment opportunities in domestic and overseas markets.

Derivatives-linked products issuance

(Unit: KRW billion)


ELS

Value 10,528.9 10,191.6 3,801.8

Market share 13.7% 14.2% 11.6%

Rank 1 2 1

DLS

Value 2,749.1 3,568.4 2,446.6

Market share 11.4% 15.1% 17.8%

Rank 4 1 1

* Issuance Market Size: ELS increased from KRW 71.7 trillion in 2014 to KRW 76.9 trillion in 2015; DLS rose from KRW 23.7 trillion in 2014 to KRW 24.2 trillion in 2015

8


Breakdown of client assets and Financial product sales assets

(Unit: KRW trillion)

Description Fy2015 Fy2014 change (%)

Total assets 142.9 136.6 4.6%

Brokerage assets (including deposits) 77.9 81.3 (4.2)%

Financial product sales assets 65.0 55.3 17.5%

Wrap accounts 16.1 12.6 27.9%

Trusts/Pensions 13.0 10.9 19.6%

Mutual funds 13.8 10.7 28.8%

Bond/CP 8.3 8.0 3.9%

RP 6.9 6.7 2.4%

ELS/DLS 6.9 6.4 7.7%

number of HnWi clients

(Unit: Person)

sg&a expenses(Unit: KRW billion)


Labor expenses 409.7 341.9 243.5

Salaries 303.7 195.5 141.0

Severance payments 43.1 30.7 33.1

Fringe benefits 62.9 115.6 69.4

Computer system operating expenses 22.8 22.9 15.2

Rental expenses 21.6 21.9 16.7

Commissions paid 10.3 8.3 8.6

Entertainment expenses 6.7 5.6 4.9

Advertising expenses 27.8 23.3 23.6

Depreciation expenses 25.9 30.9 23.1

Research expenses 1.1 1.0 0.9

Training expenses 3.3 3.0 3.1

Taxes and dues 19.5 16.9 13.7

Others 52.9 52.2 44.9

total 601.6 527.9 398.3

* Based on K-IFRS consolidated financial statements

Compensation for individual performance and team-based compensation are reclassified from fringe benefits to salaries

Breakdown of labor expenses

(Unit: KRW billion)

Client Base

At the end of 2015, Mirae Asset Daewoo’s total client assets stood at KRW 142.9 trillion, up 4.6% year-on-year. In June 2015, there was a withdrawal of assets amounting to KRW 15.5 trillion in relation to the expiration of Cheil Industries’ lockup period, which Mirae Asset Daewoo managed for its IPO. As a result, brokerage assets dropped 4.2% to KRW 77.9 trillion. However, financial product sales assets went up by 17.5%, from KRW 55.3 trillion to KRW 65 trillion, so that total client assets actually rose. Our efforts to establish the foundations for a ‘Premier PB House’ and to strengthen our long-term business led to a 19.1% increase in HNWI clients with investments of KRW 100 million or more, from 51,337 persons in 2014 to 61,121 in 2015.

sG&a expenses

Selling, General and Administrative (SG&A) expenses in 2015 were up KRW 73.7 billion year-on-year, to KRW 601.6 billion. This was mainly attributable to increases of KRW 67.8 billion, KRW 4.5 billion, and KRW 2.6 billion in labor expenses, advertising expenses, and taxes and dues, respectively, through performance improvements and voluntary retirement. In contrast, depreciation expenses fell by KRW 5 billion.

9 10

11 12

9

11

12

10

Fy2015

FY2014

FY2013

307.0

286.3

221.2

102.7

55.6

22.3

409.7

341.9

243.5

▒ Fixed labor expenses

▒ Variable labor expenses

Fy2015

FY2014

61,121

19.1%

FY2013

51,337

47,280

15

Financial status

Financial position

Total assets at the end of 2015, based on K-IFRS, stood at KRW 34,841.9 billion, up 13.8% or KRW 4,228.6 billion year-on-year. Cash and deposits rose KRW 0.6 trillion, while client deposits were up KRW 0.7 trillion year. KRW-denominated securities, foreign currency securities, and mutual funds rose KRW 1.4 trillion, KRW 0.2 trillion, and KRW 0.3 trillion, respectively. Loans, which consist of credit for customers, were up by KRW 0.8 trillion.

Total liabilities grew 15.2%, or KRW 4,017.6 billion, year-on-year from KRW 26,439 billion to KRW 30,456.6 billion. Derivatives-linked products increased by KRW 1.3 trillion as a result of increased issuance of ELS and DLS products, and borrowings rose by KRW 3 trillion, driven by KRW 1.2 trillion growth in RP sales to customers. Investors’ deposit received, including customers’ deposit received for brokerage and deposit received for derivatives trading, rose KRW 0.7 trillion, from KRW 2.3 trillion in 2014 to KRW 3 trillion in 2015.

At the end of December 2015, total shareholders’ equity was KRW 4,385.3 billion, up 5.1% or KRW 211 billion from KRW 4,174.3 billion in the previous year. The company’s capital stock was valued at KRW 1,703.9 billion, the same as in 2014, with common stocks amounting to 326,700,891 shares and preferred stocks amounting to 14,075,750 shares as of the end of December 2015.

net operating capital Ratio

Mirae Asset Daewoo verifies its Net Operating Capital Ratio (NCR)* on a regular basis, to maintain an appropriate level of financial soundness according to methods set forth by the financial supervisory authorities. Introduced by the financial supervisory authorities, this system is aimed at increasing the soundness of financial investment firms and protecting investors in a rapidly changing financial environment.

The ratio is calculated by deducting total risk from net operating capital as of a set date, and then dividing this amount by the equity capital that needs to be maintained. Net operating capital is determined after subtracting non-liquid assets from shareholders’ equity. In other words, it is the value obtained by subtracting total liabilities from total assets in financial statements, the result of which is then adjusted by reflecting mandatory deduction items such as non-current assets and the addition of items such as the company’s provision for losses on loans. Total risk refers to quantified losses that may arise in the event of a market downturn, and reflects market, credit, and operational risks. The equity capital that needs to be maintained is 70/100 of the amount that results from summing the equity capital needed for each unit of authorized or registered business.

As of the end of December 2015, Mirae Asset Daewoo’s NCR was 905.1% (net operating capital of KRW 3,258.4 billion / total risk of KRW 825.6 billion), above the figures stipulated by regulations. The Financial Investment Industry Regulations stipulate a minimum level of NCR of 100% for financial investment companies. Also, our net operating capital is more than twice the total risk amount, which is the ratio that needs to be maintained in order to trade OTC derivatives according to the Capital Market and Financial Investment Business Act. Surplus capital is an indicator of a financial investment company’s practical risk appetite, and is calculated by deducting the total risk amount from net operating capital. At KRW 2,432.8 billion, Mirae Asset Daewoo maintained the highest level of surplus capital in the Korean investment industry as of the end of December 2015.

Following our voluntary early application of the NCR system in 2015, we applied a 200% weighting to calculations of the equity capital that needs to be maintained as required for companies in the financial investment business with equity capital of KRW 3 trillion or more. When the system comes into full force in 2016, this weighting will no longer need to be applied in determining the equity capital that must be maintained, resulting in the increase in NCR.

* Pursuant to Article 10, Paragraph 1 of the Act on the Structural Improvement of the Financial Industry, net operating capital ratio is a figure that indicates, as a percentage, the ratio of net operating capital against the equity capital that needs to be maintained based on Article 3-6, Sub-paragraph 3 of the Financial Investment Industry Regulations.

13 14


summarized statements of Financial position(Unit: KRW billion)

Description

Fy2015 (Dec. 31, 2015) Fy2014 (Dec. 31, 2014) Fy2013 (Dec. 31, 2013)

consolidated separate consolidated separate consolidated separate

Cash and deposits 3,710.4 3,568.7 3,116.6 2,943.8 3,226.6 3,018.2

Securities 25,589.7 25,816.0 23,030.9 23,506.4 19,072.4 19,216.0

Derivatives 629.7 625.0 591.2 585.7 452.9 415.6

Loans 3,054.0 2,745.2 2,289.5 1,893.6 1,692.0 1,698.0

Tangible fixed assets 248.5 246.0 249.1 245.7 244.6 241.2

Other assets 1,609.6 1,544.9 1,336.0 1,261.9 1,316.5 1,190.2

total assets 34,841.9 34,545.8 30,613.3 30,437.1 26,005.0 25,779.2

Deposits 3,040.7 3,022.6 2,321.1 2,266.3 1,859.4 1,828.7

Borrowings 26,054.2 25,920.8 22,962.9 22,926.7 19,049.5 18,891.8

Other liabilities 1,361.7 1,282.3 1,155.0 1,105.2 1,181.6 1,152.4

total liabilities 30,456.6 30,225.7 26,439.0 26,298.2 22,090.5 21,872.9

Capital stock 1,703.9 1,703.9 1,703.9 1,703.9 1,703.9 1,703.9

Capital surplus 660.1 660.1 660.1 660.1 660.1 660.1

Capital adjustments (117.1) (111.4) (125.9) (116.8) (118.8) (118.8)

Accumulated other comprehensive income 121.8 121.6 127.8 147.6 22.1 65.1

Retained earnings 2,015.9 1,945.9 1,801.2 1,744.1 1,640.7 1,596.0

Non-controlling interest 0.7 - 7.2 - 6.5 -

total shareholders’ equity 4,385.3 4,320.1 4,174.3 4,138.9 3,914.5 3,906.3

total liabilities & shareholders’ equity 34,841.9 34,545.8 30,613.3 30,437.1 26,005.0 25,779.2

* Based on K-IFRS consolidated and separate financial statements

net operating capital Ratio(Unit: KRW billion)

Fy2015 Fy2014 Fy2013

Net operating capital 3,258.4 3,171.9 2,928.9

Total risk amount 825.6 736.5 573.2

Surplus capital 2,432.8 2,435.4 2,355.6

New NCR 905.1% - -

Old NCR - 430.7% 510.9%

13

14

17

Customer-focused Management

customer satisfaction

Customer satisfaction begins with identifying what customers want, and so we have established diverse channels to listen to them. The Voice of Customers (VOC) system was built to enable customers to deliver their opinions through branches, the company website, customer center, regular mail, and e-mail. We conduct regular customer satisfaction surveys, and have developed a Customer Complaint Management System that systematically and effectively reflects customer opinions and requirements. The Customer Service Improvement Council makes sure that all these channels work as effectively as possible.

Our customer-focused management has earned many awards. Mirae Asset Daewoo was the No. 1 securities firm at the 2015 Korea Customer Surprise Brand Index (K-CSBI), and No. 1 in the securities category of the 2015 Korea Sales Service Satisfaction Index (KSSI). In addition, Mirae Asset Daewoo won first place for the third consecutive year in the securities industry category of the 2015 KS-CQI Call Center Quality Index, organized by the Korean Standards Association. We are especially proud of the recognition earned in this award by our high-quality call center staff, who receive training for no less than 130 hours a year, and offer a ‘20-second response rate’, our commitment to connect a customer to a call center employee within 20 seconds of calling. The award also complimented our ‘Easy Finance’, in which complex terminology is made simpler for customers.

Major accomplishments of customer-focused Management

personal pension Fitness _ According to Statistics Korea, the number of people aged 60 and over in Korea has risen more than 50%, from 6.28 million in 2005 to 9.36 million in 2015, and it is forecast that the number of elderly will reach 20 million by 2020. Korea’s rapidly aging society is leading to great interest in pension savings products. However, many potential customers still regard personal pensions as a tax-saving product, or a savings product that does not require special management. The market for pension savings funds provided by securities firms has grown with the implementation of the simplification of pension savings account transfer rules, so securities firms are striving to attract personal pension customers, but their efforts have tended to be limited to simple marketing or giveaways.

We have taken a more sophisticated and unique approach by launching ‘Personal Pension Fitness’, to emphasize pension savings investment management, and the consistent management of earnings. Our PBs suggest the right products for each customer, set appropriate target earnings rates for a customer’s personal circumstances, suggest a customized portfolio, and offer continuous, in-depth portfolio management. Personal Pension Fitness is growing rapidly, and earning very favorable reviews from customers and the market. The number of new personal pension clients recorded 42,641 in 2015 alone.

easy Finance _‘Easy Finance’ is another way for Mirae Asset Daewoo to get closer to customers. In 2014, when we adopted the ‘Easy Finance’ concept, we published a booklet entitled ‘Easy-to-Understand Financial Terminology’, written by 3,000 people at the company with the goal of providing easy-to-understand explanations of financial terminologies to general investors. We also opened the ‘FN genii’ website at www.fngenii.com, to offer an easier way to understand complex and difficult financial content.

In 2015, we expanded the scope of Easy Finance by establishing a simpler global ETF investment system. Upgraded HTS and MTS were launched in October 2015, and substantial improvements were made to trading convenience, including an ETF-only screen that can be used to easily access global ETF-related investment information. We published a global handbook to help investors understand overseas ETF.

In-depth professional knowledge of finance and our products are essential for Easy Finance. Mirae Asset Daewoo therefore hosted the ‘Global Challenge Investment Contest’ from January 4th to March 25th, 2016, to enhance capabilities of all our staff in relation to global ETF. The contest increased interest throughout the company in overseas stock trading, and, with participants gaining experience in global asset allocation strategies through mock investments, it strengthened our ability to provide ‘Easy Finance’ to customers.

personal pension Business performance

Fy2015 Fy2014 Fy2013

Number of accounts (Unit: Account)

46,985 4,344 3,707

Assets (Unit: KRW billion)

168.6 40.5 27.0


Net operating revenue

income before income tax

17.2

8.6

overseas Business performance

(Unit: KRW billion)

47.42014

2015 73.0

54.1%↑

99.7%↑2014

2015

Customer service Network

Domestic network

Mirae Asset Daewoo is expanding our business network so that customers can access our services as easily as possible. As of the end of 2015, we have our headquarters branch in Yeouido, Seoul, 16 PB Classes across the nation, 82 branches, and three Stores, for a total of 102 sales and customer contact points. The Store is an innovative new concept that we unveiled in 2014; it consists of personnel numbers and office space that are about one-quarter of those at a regular sales point, so it can deliver high efficiency at low cost. We established a Store in Songdo, Incheon and Techno Valley in Pangyo in 2014, followed by the opening of a Store in Sejong City in 2015.

global network

As of the end of 2015, Mirae Asset Daewoo has 12 offices in nine countries around the globe. This is the largest global network of any Korean financial investment company. We have differentiated our approach for each market by region and country, and each office concentrates on a particular business based on these approaches. Our offices in Hong Kong, London, and Indonesia are aiming to build local, full-service securities firms, while those in New York and Singapore are focused on stock trading. In China, we are a market leader in providing advice for cross-border M&A and joint ventures between Korean and Chinese companies, and we also promote investment between the two countries. Across the globe, therefore, we are building a presence as a strong IB and advisory company.

overseas Business accomplishments _ Mirae Asset Daewoo makes continued mid-to-long-term investments in its overseas businesses. As a result, our nine overseas subsidiaries enjoyed remarkable performance improvements in 2015, with net operating revenue up 54.1% year-on-year to KRW 73 billion, a record performance for the company.

Our Hong Kong subsidiary successfully sold a US office building in which it invested two years ago. The money earned from this sale was the highest revenue generated by a single overseas investment in the company’s history. Our Indonesian subsidiary is expanding its business from online brokerage, in which it is dominant in Indonesia, to offline brokerage. It is targeting local institutions, which has helped it to build a market share of around 3%, and the subsidiary is now strengthening its reputation as a local full-service securities firm.

We are leading aircraft sale & lease back investment, as well as in financial arrangement. We also sell global products, including Contingent Convertible Bonds (CoCo Bond) and Chinese stock index-linked derivatives, providing solutions for global asset allocation to domestic customers.

overseas Business strategies _ As uncertainties continue to grow in the global market, demand for alternative investments, which are relatively profitable and stable, is expected to increase. We will therefore expand our range of overseas alternative investments, and focus on supplying overseas products that are based on in-depth global asset allocation strategies.

We will continue to implement specific strategies for each different region, to help our overseas business maximize both efficiency and profitability. We will apply the success of our Hong Kong subsidiary’s trading desk to Europe, in order to establish a 24-hour global trading system. In China, we will market our track record to build on our unrivaled position in the Korea-China cross-border deal advisory market. We will improve local research, and build a global research network based on our extensive overseas presence. This will widen our overseas stock trading coverage, and will promote the qualitative and quantitative growth of our overseas stock trading services.

global network* As of the end of 2015

London, UK

Daewoo Securities (Europe) Ltd.

Hong Kong

Daewoo Securities (Hong Kong) Ltd.Daewoo Investment Asia

South Mountain Asset Management

Beijing, China

Daewoo Investment Advisory (Beijing) Co., Ltd.

Jakarta, Indonesia PT. Daewoo Securities Indonesia

Tokyo, Japan

Tokyo Representative Office

Singapore

Daewoo Securities (Singapore) Pte. Ltd.

Shanghai, China

Shanghai Representative Office

Ho Chi Minh City, Vietnam

Hochiminh Representative Office

New York, US

Daewoo Securities (America) Inc.

suBsiDiaRy

oFFice

Ulaanbaatar, Mongolia Daewoo Securities (Mongolia) LLC

19

Basic principles of Risk Management

Risk means the potential loss or losses that may arise in relation to the company’s various business activities or sales activities. Effective risk management is integral to the success of financial institutions. Opportunities for revenue generation require a certain amount of risk, yet exposure at too high of a level can lead to large losses in corporate and shareholder value.

That is why Mirae Asset Daewoo makes utmost efforts to generate the optimum amount of revenue within an acceptable range of risk, based on management’s strong determination to implement the highest standards of risk management. By doing so, we strive to maximize shareholder value and enhance our corporate value as a sustainable company.

For the systematic management of the risks that the company is exposed to, we break down the risks that need to be managed into market, credit, liquidity, operational, legal, and reputational risks. We have established management systems and criteria that are appropriate to each type of risk, and use them to effectively identify, analyze, evaluate, and control the risks. We also make sure that our risk management systems satisfy global standards by maintaining industry-leading risk management personnel and budgets. This has enabled us to enjoy profitable growth and a stable level of capital adequacy as required by the financial supervisory authorities.

Mirae Asset Daewoo's establishes regulations, detailed rules, guidelines, and standards to build a comprehensive, company-wide risk management system. We observe the Financial Investment Industry Regulations by determining what is needed for corporate risk management, while establishing and implementing risk management regulations to achieve an optimum level of asset soundness and management stability through effective management of risks and efficient distribution of investment resources.

Risk Management


winning witH RiSk MAnAgEMEnt

high-limit credit lines; and approving improvements and major changes to the entire risk management system. The nomination and dismissal of Committee members is determined by the BOD. The Committee chairperson is selected from among the outside directors on the Committee. In the event of a risk-related emergency that occurs while the Committee is unable to meet, the chairperson is entitled to readjust the pertinent transaction or the company’s position, and demand that the department in question take appropriate measures.

The Proprietary Council and the Client Council manage details of decisions made by the Committee and issues that have been delegated to them by the Committee, and they report on the results to the Committee. The Proprietary Council’s major functions include approving new transactions and the introduction of new products; the use of and changes to price valuation models; issues relating to the incorporation of policy positions; and criteria for evaluating the risk-adjusted performance of relevant departments. It also distributes limits among departments and marketing activities within the scope approved by the Committee, agrees to risks that exceed allowable limits, establishes and changes risk management regulations, and approves routine and repetitive risk management system changes. Members of the Council are elected by the Committee, and the CRO presides over Council meetings. In the event of an emergency concerning issues that are dealt with by the Proprietary Council, the CRO is entitled to demand that the department in charge of the transaction discontinues the transaction, readjusts the company’s position, and takes appropriate measures in relation to the employee in charge.

Risk Management Committee regulations have been established to state the composition and roles of the Risk Management Committee, our top risk management decision-making body. We also operate the Proprietary Asset Risk Management Council and the Client Asset Risk Management Council, in order to handle details and issues that have been delegated to them by the Risk Management Committee. In addition, detailed enforcement regulations on risk management and various guidelines and standards have been established to ensure efficient risk management by type of asset management and risk exposure.

In addition, we have drawn up assessment regulations to promote the stability and efficient post-management of our investments and credit-granting operations. These regulations outline the procedures and methods that are needed to manage principal investments, underwritings, and credit lines, as well as to monitor, recover, and manage Non-Performing Loans (NPLs). We have developed a set of Investment Review Committee regulations to offer suitable guidance on the operation, composition and activities of the Investment Review Committee, and set up detailed guidelines for principal investment, underwriting, credit lines, and NPL management for efficient reviews and post-management.

Risk Management organization

Mirae Asset Daewoo’s risk management organization is comprised of a Risk Management Committee (‘the Committee’), a Proprietary Asset Risk Management Council (‘the Proprietary Council’), a Client Asset Risk Management Council (‘the Client Council’), an Investment Review Committee, a Working-Level Review Council, a Working-Level Post-Management Council, a Chief Risk Officer (CRO), a Risk Management Depart-ment, an Investment & Credit Assessment Department, a Financial Assessment Team, an Investment Management Team, Risk Managers for each business unit, Risk Reporters for each department, and an Operational Risk Manager.

The Committee consists of three Board of Directors (BOD) members, including at least two outside directors. As the top risk management decision making organization, it is mandated with establishing risk management strategies that correspond to the company’s operational strategies, and supervising whether risk management work is being carried out appropriately. Some of the major issues that the Committee deliberates and decides on include enacting and revising risk management regulations and guidelines; setting adequate levels of financial soundness, including risk appetite, which is the permissible risk level; approving criteria for judging liquidity crises and contingency plans; creating or changing important risk management systems; determining the company’s total risk limits; approving

Risk Management organization chart

BoD

chief Risk officer

ceo

Risk Management Committee

investment Review Committee

Working-Level Post-Management

Council

Working-Level Review Council

Client Asset Risk Management Council

Proprietary Asset Risk Management Council

Investment & Credit Assessment

Department

Risk Management Department

Risk Manager

Risk Reporter

Financial Assessment Team

Investment Management Team

21

The Client Council’s major functions include approving the introduction of new products related to trust and/or wraps; approving the criteria for adding to trust/wrap portfolios; valuing bonds for which price information provided by bond rating companies is not applicable; and approving any risks in excess of the limits related to the management of trust/wrap assets. Members of the Council are elected by the Committee, and the CRO presides over Council meetings. In the event of an emergency concerning issues that are dealt with by the Client Council, the CRO is entitled to demand the department in charge suspends asset management and readjusts the company’s position, and to demand that appropriate measures be taken in relation to the employee in charge.

The Investment Review Committee carries out reviews of the company’s investment transactions. Composed of executive officers, it can convene at any time to facilitate smooth decision making on investments. Its major functions include conducting reviews of principal investments exceeding specified limits or the acquisition of assets for similar purposes; underwriting activities and the extension of credit lines; and the designation of NPLs, position transfers, and alternative pricing for financial investments. The Working-Level Review Council carries out reviews to support the Investment Review Committee. The Working-Level Post-Management Council convenes if an event of default occurs, in order to review status and discuss appropriate countermeasures.

Regulations and Systems

•RiskManagement Committee Regulations

•RiskManagementRegulations

•DetailedEnforcement

•Regulationson Risk Management

•TrustAssetRisk Management Guidelines

•WrapAssetRisk Management Guidelines

•OverseasBranchRiskManagement Guidelines

•ELS(B)andDLS(B)Issuanceand Management Guidelines

•RealEstateProjectFinancingRisk Management Guidelines

•CriteriaonDeterminingtheRetirement Pension Review Base Rate

•InvestmentReview Committee Regulations

•AssessmentRegulations

•PrincipalInvestmentManagement Guidelines

•UnderwritingReviewGuidelines

•CreditLineReviewGuidelines

•NPLManagementGuidelines

•OverseasNetworkReviewGuidelines

•CollateralManagementGuidelines

•SpecialPurposeCompanyManagement Guidelines

Risk Management Organization

•RiskManagementCommittee

•ProprietaryAssetRiskManagement Council

•ClientAssetRisk Management Council

•InvestmentReviewCommittee

•Working-LevelReviewCouncil

•Working-Level Post-Management Council

•ChiefRiskOfficer

•RiskManagementDepartment

•Investment&CreditAssessment Department

•FinancialAssessmentTeam

•InvestmentManagementTeam

•RiskManager

•RiskReporter

•OperationalRiskManager

Risk Measurement Methodology

• StandardVaR

• InternalVaR

• Exposure

• Sensitivity

• Simulation

• LiquidityGap

• Stress-Testing

Risk Management system

The CRO serves as the lead of the Proprietary Council, Client Council, and the Investment Review Committee, presiding over meetings of all these bodies and having overall authority over the risk management organization. The CRO can also take appropriate measures in the event of an emergency concerning the company’s risk management.

The Risk Management Department is in charge of building a comprehensive risk management system of the company and enhancing risk management capabilities so that the company’s equity capital is always protected and used in an efficient manner. By doing so, the Risk Management Department contributes to the establishment of the foundations for the sustainable growth of the company. It also plays an important role in planning and coordinating overall risk management-related issues which include executing risk management policies as determined by the Committee, the Proprietary Council and the Client Council through appropriate procedures and systems, as well as overseeing practical business affairs to facilitate the operations of the Committee, the Proprietary Council and the Client Council. In addition, it monitors the current status of the company’s asset management operations and reports to senior management on overall risk management issues.

The Investment & Credit Assessment Department and Financial Assessment Team provide prudent opinions based on comprehensive analyses of transactions related to principal investments, IB underwriting, and extensions of credit lines. They also conduct reviews prior to the company’s investment transactions, independent of the sales departments, and support the operations of the Investment Review Committee.

The Investment Management Team performs post-management functions such as monitoring investment positions, collection, and management of NPLs.

A risk manager is an employee affiliated with a business that has control over a business unit in charge of a transaction. The risk manager works independently of the employee in charge of the transaction, reviewing operational positions and risks related to profits and losses from transactions, reporting on results to the head of the respective business, and keeping the Risk Management Department abreast of relevant activities. Risk reporters are selected by each transaction-related department, and review all transactions and the current status of each department’s risk positions. They report all results to the head of the relevant department and its risk manager, and inform the Risk Management Department.

Operational Risk Managers are selected from each department and branch to take general charge of operational risk-related matters, which include the Risk & Control Self-Assessment (RCSA), Key Risk Indicator (KRI) data input, and the registering of losses.


Management of Major Risk Factors

Market Risk _ Market risk refers to potential losses the company may incur in the course of conducting its asset management business due to untoward changes in equity prices, interest rates, and/or exchange rates. We use the standard market Value at Risk (VaR), as set by the Financial Investment Industry Regulations, and internal market VaR, which is calculated by our own risk management system, to measure and control market risk. VaR calculates the maximum loss to be expected on an investment over a given period of time and at a given confidence level when market prices move in an adverse direction under normal market conditions.

Although VaR can be an effective method for measuring market risk, it fails to provide information on possible losses in cases exceeding a given confidence level, since it is based on a presupposition of normal market conditions. To mitigate this limitation, we use sensitivity monitoring and stress testing as additional indicators for market risk management. Moreover, we regularly prepare assessment and analysis reports on current market risks for submission to senior management. In addition to market VaR, these reports describe the current status of loss limit monitoring and the company’s major assets, as well as the results of crisis scenario analyses and the current status of the company’s capital adequacy.

credit Risk _ Credit risk refers to losses that Mirae Asset Daewoo would incur if a counterparty failed to fulfill its obligations on payment or repayment of principal, or discontinued a contract on derivative transactions such as swaps. To manage credit risk, we determine acceptable exposure limits according to the counterparty or its credit rating. We also maintain an appropriate level of capital adequacy by controlling VaR credit limits through the standard VaR model. We also monitor major counterparties to which we have a substantial degree of risk exposure through regular monitoring of their current credit risk status.

Since transactions involving credit risk are usually large and difficult to securitize, proactive and preemptive risk management is essential. To address this, we execute prior inspection processes that analyze both the quantity and quality of all transactions involving credit risk.

liquidity Risk _ There are two types of liquidity risk – market liquidity risk and prudential liquidity risk. Market liquidity risk occurs when a firm is unable to acquire assets or dispose of them at normal market prices due to a lack of liquidity in the market for the invested assets. Prudential liquidity risk occurs when a company is unable to satisfy minimum liquidity guidelines, such as liquidity ratios.

We measure liquidity risk by means of a liquidity risk management system, using liquidity gaps and ratios as key indicators. Departments related to risk management and funds regularly monitor the current state of liquidity risks and provide reports to senior management. In addition to general liquidity risk management, we have developed contingency plans to deal with any liquidity crises that may arise. Crisis situations were classified into three categories – caution, alert, and risk – depending on the condition of the company’s liquidity and the level of stability in financial markets. Specific action plans have been prepared for each level. We also monitor financial market stability by selecting specific indicators that take into account the nature of each business department, and senior management is briefed on a regular basis.

operational Risk _ Operational risk refers to potential losses arising from shortcomings or failures in internal processes, people, or systems, or from external events. We use both the standard model that is set forth in the Financial Investment Industry Regulations and our own internal model, applied the Advanced Measurement Approach, to calculate operational VaR. We also systematically analyze our company-wide business processes, resulting in a sophisticated degree of operational risk management. Moreover, a process management system is in place for the efficient management of business processes.

We also use an operational risk management system to collect data on past losses and analyze their causes and types, thus preventing repeated occurrences. Furthermore, we choose potential operational risks and carry out regular RCSA, in order to systematically manage the root cause of each risk, event types, and appropriate countermeasures. In addition, KRIs are selected and managed to ensure the efficient control of operational risks.

legal Risk _ Legal risk refers to potential losses that the company may incur due to the adverse impact of shortfalls in contracts and/or legal translations, or changes in laws and regulations. We include these risks in our operational risk management system. We also have a legal affairs department consisting of professional lawyers.

23

We maintain win-win social contributions related to multicultural family support, social entrepreneurship, and under-developed nation support – our three main themes of Corporate Social Responsibility (CSR). In 2015, we strengthened partnerships with government, academic, and social enterprise institutions, and carried out social contributions with more enthusiastic employee participation.

Multicultural Family support program

We support multicultural families through various programs that help them better assimilate into Korean society and their children grow into global experts. The programs are to support bilingual education for children of multicultural families, to develop educational contents to improve the public’s understanding of multiculturalism, and to provide Korean cooking books published in multiple languages for marriage migrant women. In 2015, we signed memorandums of understanding with the Ministry of Education and Hankuk University of Foreign Studies, and held a bilingual language contest for elementary, junior high, and high school students from all across the nation.

social entrepreneurship program

We foster the growth of social enterprises through social contributions in collaboration with social enterprises and social ventures. By holding a contest of dissertation on social economy research by college and graduate school students, we sought to lay cornerstones for promoting social entrepreneurship.

under-developed nation support program

By supporting under-developed nations, Mirae Asset Daewoo seeks to stay true to its global corporate citizenship.

We built an elementary school in the Democratic Republic of the Congo, together with the World Food Programme (WFP), and have been supporting the school’s meal program since 2013. In 2015, we built a drinking water facility through collaboration in a well-digging project with Ecojun Company, a social venture.

In Indonesia and the Philippines, we carried out a ‘Safe School’ program with the Korea International Cooperation Agency (KOICA) and Plan Korea, an international relief development NGO. The program, one of KOICA programs performed overseas through cooperation with domestic corporations, seeks to improve school facilities in natural disaster-prone areas and enhance the disaster response ability of the students and local residents.


3rd bilingual language contest

Meal program support and construction of a drinking water facility in the Democratic Republic of the Congo

SOCiAl COntRiButiOnS

Mirae Asset Daewoo will continuesocial contributions that embody our sincere wishes for the happiness and prosperity of local communitymembers, as part of a pursuit towarda society of mutual growth.

Mirae asset Daewoo

Consolidated Statements of Financial Position 26

Consolidated Statements of Comprehensive Income 27

Consolidated Statements of Changes in Equity 29

Consolidated Statements of Cash Flows 30

Separate Statements of Financial Position 32

Separate Statements of Comprehensive Income 33

Separate Statements of Changes in Equity 34

Separate Statements of Cash Flows 35

Statements of Appropriations of Retained Earnings 37

Independent Auditors’ Report (Consolidated) 38

Independent Auditors’ Report (Separate) 39

Review Report on Internal Control over Financial Reporting 40

Audit Committees’ Report 41

finAnCiAlREpORt

25

Daewoo securities co., ltd. and subsidiaries

(In millions of won)

December 31, 2015 December 31, 2014

assets

Cash and due from banks ￦ 3,710,379 3,116,618

Financial assets held-for-trading 13,864,898 11,699,049

Financial assets designated at fair value through profit or loss 4,006,662 3,397,822

Derivative financial assets 629,667 591,193

Available-for-sale financial assets 7,685,649 7,903,858

Loans 3,054,041 2,289,497

Investments in associates 32,441 30,246

Property and equipment 248,509 249,065

Investment property 54,755 63,072

Intangible assets 75,057 89,318

Plan assets (of an employee benefit plan) 5,854 6,642

Current tax assets 46,767 52,876

Deferred tax assets 17,211 60,432

Other assets 1,410,050 1,063,604

total assets ￦ 34,841,940 30,613,292

liabilities

Financial liabilities held-for-trading ￦ 365,444 393,963

Financial liabilities designated at fair value through profit or loss 11,720,832 10,407,144

Derivative financial liabilities 1,435,855 1,080,010

Deposits 3,040,711 2,321,134

Borrowings 11,212,633 9,965,880

Bonds 1,319,398 1,115,940

Defined benefit liabilities 189 197

Provisions 32,286 31,433

Current tax liabilities 537 330

Deferred tax liabilities - 28

Other liabilities 1,328,755 1,122,974

total liabilities 30,456,640 26,439,033

equity

Equity attributable to owners of the Group

Issued capital 1,703,883 1,703,883

Capital surplus 660,085 660,085

Capital adjustment (117,137) (125,888)

Accumulated other comprehensive income 121,807 127,828

Retained earnings(Regulatory reserve for loan losses: ￦13,701 and ￦13,213 at 2015 and 2014)(Planned regulatory reserve for loan losses: ￦5,855 and ￦488 at 2015 and 2014)

2,015,971 1,801,174

4,384,609 4,167,082

Non-controlling interests 691 7,177

Total equity 4,385,300 4,174,259

Total liabilities and equity ￦ 34,841,940 30,613,292

01. consolidated statements of Financial positionAs of December 31, 2015 and 2014



(In millions of won, except earnings per share information)


Commission income ￦ 568,891 389,752

Gain on valuation and disposal of financial assets held-for-trading 362,893 397,523

Gain on valuation and redemption of financial liabilities held-for-trading 43,491 38,313

Gain on valuation and disposal of financial assetsdesignated at fair value through profit or loss

122,840 92,447

Gain on valuation and redemption of financial liabilitiesdesignated at fair value through profit or loss

742,283 475,580

Gain on valuation and transaction of derivative instruments 2,055,975 1,525,640

Gain on disposal and reversal of impairment loss of available-for-sale financial assets

137,254 75,461

Interest income 646,542 678,269

Other operating revenues 396,794 340,795

operating revenues 5,076,963 4,013,780

Commission expense (71,532) (48,653)

Loss on valuation and disposal of financial assets held-for-trading (265,115) (186,439)

Loss on valuation and redemption of financial liabilities held-for-trading (42,446) (37,876)

Loss on valuation and disposal of financial assetsdesignated at fair value through profit or loss

(115,012) (42,178)

Loss on valuation and redemption of financial liabilitiesdesignated at fair value through profit or loss

(645,088) (598,696)

Loss on valuation and transaction of derivatives instruments (2,351,991) (1,719,011)

Loss on disposal and impairment loss of available-for-sale financial assets (28,254) (26,593)

Interest expense (249,691) (291,734)

General and administrative expenses (601,587) (527,899)

Other operating expenses (303,133) (263,907)

operating expenses (4,673,849) (3,742,986)

operating income 403,114 270,794

Non-operating revenues 12,945 22,501

Non-operating expenses (27,396) (19,458)

non-operating income (14,451) 3,043

profit before income tax 388,663 273,837

Income tax expense 89,835 67,988

profit for the year(Profit for the year after the adjusting regulatory reserve for loan losses: ￦292,973 million and ￦205,361 million for 2015 and 2014)

￦ 298,828 205,849

02. consolidated statements of comprehensive Income

for the years ended December 31, 2015 and 2014

27




other comprehensive income (loss)

Reclassifiable to profit or loss subsequently:

Net changes in unrealized fair values of available-for-sale financial assets ￦ (39,838) 66,925

Equity in other comprehensive income of associates 1,249 939

Exchange differences on translation of foreign operations 24,264 17,267

Income tax effect 8,311 (14,981)

Unreclassifiable to profit or loss subsequently:

Defined benefit plan actuarial gains - 46,993

Income tax effect - (11,372)

other comprehensive income for the year, net of income tax (6,014) 105,771

total comprehensive income for the year ￦ 292,814 311,620

profit attributable to

Owners of the Group ￦ 298,847 205,195

Non-controlling interests (19) 654

￦ 298,828 205,849

total comprehensive income attributable to:

Owners of the Group ￦ 292,826 310,940

Non-controlling interests (12) 680

￦ 292,814 311,620

earnings per share

Basic and diluted earnings per share (won) ￦ 926 626


03. consolidated statements of changes in equityfor the years ended December 31, 2015 and 2014

Daewoo securities co., ltd. and subsidiaries(In millions of won)

issuedcapital

capitalsurplus

capitaladjustment

accumulatedother

comprehen-sive

incomeRetainedearnings total

non-controlling

interesttotal

equity

Balance at January 1, 2014

￦ 1,703,883 660,068 (118,782) 22,083 1,640,725 3,907,977 6,516 3,914,493

Total comprehensive loss for the year:

Profit for the year - - - - 205,195 205,195 654 205,849

Other comprehensive income for the year

- - - 105,745 - 105,745 26 105,771

- - - 105,745 205,195 310,940 680 311,620

Transactions with owners:

Disposal of treasury stocks - - 3,451 - - 3,451 - 3,451

Others - 17 (10,557) - (44,746) (55,286) (19) (55,305)

- 17 (7,106) - (44,746) (51,835) (19) (51,854)

Balance at December 31, 2014

￦ 1,703,883 660,085 (125,888) 127,828 1,801,174 4,167,082 7,177 4,174,259

Balance at January 1, 2015

￦ 1,703,883 660,085 (125,888) 127,828 1,801,174 4,167,082 7,177 4,174,259

Total comprehensive income for the year:

Profit for the year - - - - 298,847 298,847 (19) 298,828

Other comprehensiveincome for the year

- - - (6,021) - (6,021) 7 (6,014)

- - - (6,021) 298,847 292,826 (12) 292,814


Dividends - - - - (84,050) (84,050) - (84,050)

Disposal of treasury stocks - - 3,451 - - 3,451 - 3,451

Acquisition of non-controlling interests

- - (5,775) - - (5,775) (6,474) (12,249)

Others - - 11,075 - - 11,075 - 11,075

- - 8,751 - (84,050) (75,299) (6,474) (81,773)

Balance at December 31, 2015

￦ 1,703,883 660,085 (117,137) 121,807 2,015,971 4,384,609 691 4,385,300

29

04. consolidated statements of cash Flowsfor the years ended December 31, 2015 and 2014




cash flows from operating activities

Profit for the year ￦ 388,663 273,837

Adjustments for:

Interest income (646,542) (678,269)

Interest expense 249,691 291,734

Dividend income (69,118) (63,055)

Loss (gain) related to financial assets at fair value through profit or loss 65,917 (88,516)

Gain related to financial liabilities at fair value through profit or loss (500,186) (153,444)

Loss related to derivative financial instruments 372,614 234,878

Gain related to available-for-sale financial assets (87,363) (37,485)

Provision for loan losses 7,515 1,870

Loss related to property and equipment 17,828 18,534

Loss related to investment property 4,585 1,259

Loss related to intangible assets 25,121 22,969

Net gain on foreign exchanges (36,937) (49,112)

Loss (gain) related to associates (926) 2,263

Others 23,931 (76,220)

(573,870) (572,594)

Changes in:

Due from banks (437,606) (805,832)

Financial assets at fair value through profit or loss (2,813,771) (673,194)

Loans (767,893) (599,522)

Derivative financial assets (410,955) (371,662)

Other assets (311,594) (89,233)

Financial liabilities at fair value through profit or loss 1,785,354 2,356,860

Deposits 720,123 459,421

Derivative financial abilities 355,818 664,926

Defined benefit liabilities (12,719) (194,881)

Provisions (389) -

Other liabilities 177,206 218,381

(1,716,426) 965,264

Interest received 639,501 707,956

Interest paid (245,085) (301,254)

Dividends received 70,630 63,150

Income taxes paid (30,850) (44,584)

net cash provided by (used in) operating activities (1,467,437) 1,091,775





cash flows from investing activities

Proceeds from disposal of property and equipment ￦ 34 363

Proceeds from disposal of intangible assets 2,488 3,232

Acquisitions of investments in subsidiaries - 1,230

Proceeds from disposal of investments in subsidiaries and associates 268,509 (3,060,635)

Increase of available-for-sale financial assets, net - 1,316

Decrease in held-to-maturity investments (12,903) (5,344)

Acquisitions of property and equipment (12,362) (12,942)

Acquisitions of intangible assets (20) (13,413)

Decrease in guarantee deposits 205 5,180

net cash provided in (used in) investing activities 245,951 (3,081,013)

cash flows from financing activities

Increase in borrowings 1,245,170 827,207

Issuance of bonds 202,926 210,000

Dividends paid (84,050) -

Acquisitions of non-controlling interests (12,249) -

net cash provided by financing activities 1,351,797 1,037,207

Effect of exchange rate fluctuations on cash and cash equivalents held 25,410 8,471

net increase (decrease) in cash and cash equivalents 155,721 (943,560)

cash and cash equivalents at the beginning of the year 356,765 1,300,325

cash and cash equivalents at the end of the year ￦ 512,486 356,765

31

Daewoo securities co., ltd.



assets

Cash and due from banks ￦ 3,568,729 2,943,846

Financial assets held-for-trading 13,844,341 11,914,398

Financial assets designated at fair value through profit or loss 4,006,662 3,397,822

Derivative financial assets 625,013 585,705

Available-for-sale financial assets 7,426,817 7,710,077

Loans 2,745,160 1,893,630

Investments in subsidiaries and associates 538,157 483,988

Property and equipment 245,953 245,736

Investment property 54,755 63,072

Intangible assets 58,082 60,234

Defined benefit assets 5,854 6,642

Current tax assets 46,232 52,268

Deferred tax assets 17,007 60,449

Other assets 1,363,043 1,019,208

total assets ￦ 34,545,805 30,437,075

liabilities

Financial liabilities held-for-trading ￦ 365,444 393,963

Financial liabilities designated at fair value through profit or loss 11,720,832 10,407,144

Derivative financial liabilities 1,437,282 1,080,159

Deposits 3,022,644 2,266,289

Borrowings 11,077,880 9,929,463

Bonds 1,319,398 1,115,940

Provisions 32,286 31,433

Other liabilities 1,249,963 1,073,783

total liabilities 30,225,729 26,298,174

equity

Issued capital 1,703,883 1,703,883

Capital surplus 660,068 660,068

Capital adjustment (111,362) (116,809)

Accumulated other comprehensive income 121,607 147,641

Retained earnings(Regulatory reserve for loan losses: ￦13,701 and ￦13,213 at 2015 and 2014)(Planned regulatory reserve for loan losses: ￦5,855 and ￦488 at 2015 and 2014)

1,945,880 1,744,118

total equity 4,320,076 4,138,901

total liabilities and equity ￦ 34,545,805 30,437,075

05. separate statements of Financial positionAs of December 31, 2015 and 2014





Commission income ￦ 553,361 379,896

Gain on valuation and disposal of financial assets held-for-trading 349,793 341,101

Gain on valuation and redemption of financial liabilities held-for-trading 43,491 38,313

Gain on valuation and disposal of financial assetsdesignated at fair value through profit or loss

122,840 92,447

Gain on valuation and redemption of financial liabilitiesdesignated at fair value through profit or loss

742,283 475,580

Gain on valuation and transaction of derivative Instruments 2,048,068 1,500,057

Gain on disposal of available-for-sale financial assets 137,254 75,332

Interest income 622,244 643,092

Other operating revenues 328,031 268,223

operating revenues 4,947,365 3,814,041

Commission expense (77,580) (53,514)

Loss on valuation and disposal of financial assets held-for-trading (249,230) (168,340)

Loss on valuation and redemption of financial liabilities held-for-trading (42,446) (37,876)

Loss on valuation and disposal of financial assetsdesignated at fair value through profit or loss

(115,012) (42,178)

Loss on valuation and redemption of financial liabilitiesdesignated at fair value through profit or loss

(645,088) (598,696)

Loss on valuation and transaction of derivatives instruments (2,342,697) (1,660,241)

Loss on valuation and disposal of available-for-sale financial assets (27,598) (24,157)

Interest expense (247,220) (289,417)

General and administrative expenses (566,985) (496,932)

Other operating expenses (254,593) (187,426)

operating expenses (4,568,449) (3,558,777)

operating income 378,916 255,264

Non-operating revenue 12,319 24,989

Non-operating expense (17,125) (19,934)

non-operating income (loss) (4,806) 5,055

profit before income tax 374,110 260,319

Income tax expense 88,298 67,503

profit for the year(Profit for the year after the adjusting regulatory reserve for loan losses: ￦279,957 and ￦192,328 million for 2015 and 2014)

￦ 285,812 192,816

other comprehensive income (loss)

Reclassifiable to profit or loss subsequently:

Unrealized gain (loss) on valuation of available-for-sale financial assets ￦ (34,345) 61,905

Income tax effect 8,311 (14,981)

Unreclassifiable to profit or loss subsequently:

Remeasurements of defined benefit plans - 46,993

Income tax effect - (11,372)

other comprehensive income for the year, net of income tax (26,034) 82,545

total comprehensive income for the year ￦ 259,778 275,361

earnings per share

Basic and diluted earnings per share (won) ￦ 885 587

06. separate statements of comprehensive incomefor the years ended December 31, 2015 and 2014

33

07. separate statements of changes in equityfor the years ended December 31, 2015 and 2014

Daewoo securities co., ltd.(In millions of won)

issuedcapital

capitalsurplus

capitaladjustment

accumulatedother

comprehensiveincome

Retainedearnings

totalequity

Balance at January 1, 2014 ￦ 1,703,883 660,068 (118,782) 65,096 1,596,049 3,906,314

Total comprehensive income for the year:

Profit for the year - - - - 192,816 192,816

Other comprehensive income - - - 82,545 (44,747) 37,798

- - - 82,545 148,069 230,614


Disposal of treasury stocks - - 3,451 - - 3,451

Others - - (1,478) - - (1,478)

- - 1,973 - - 1,973

Balance at December 31, 2014 ￦ 1,703,883 660,068 (116,809) 147,641 1,744,118 4,138,901

Balance at January 1, 2015 ￦ 1,703,883 660,068 (116,809) 147,641 1,744,118 4,138,901

Total comprehensive incomefor the year:

Profit for the year - - - - 285,812 285,812

Other comprehensive loss - - - (26,034) - (26,034)

- - - (26,034) 285,812 259,778


Dividends - - - - (84,050) (84,050)

Disposal of treasury stocks - - 3,451 - - 3,451

Others - - 1,996 - - 1,996

- - 5,447 - (84,050) (78,603)

Balance at December 31, 2015 ￦ 1,703,883 660,068 (111,362) 121,607 1,945,880 4,320,076


08. separate statements of cash Flowsfor the years ended December 31, 2015 and 2014




cash flows from operating activities

Profit before income tax ￦ 374,110 260,319

Adjustments for:

Interest income (622,244) (643,092)

Interest expense 247,220 289,417

Dividend income (50,838) (63,926)

Loss (gain) related to financial assets at fair value through profit or loss 56,420 (99,748)

Gain related to financial liabilities at fair value through profit or loss (500,186) (153,444)

Loss related to derivative financial instruments 373,959 240,385

Gain related to available-for-sale financial assets (88,018) (39,792)

Provision for loan losses 7,365 3,471

Loss related to property and equipment 16,592 17,245

Loss related to investment property 4,585 1,259

Loss related to intangible assets 12,026 22,565

Net gain on foreign exchanges (40,667) (49,112)

Others 28,894 (85,018)

(554,892) (559,790)

Changes in:

Due from banks (437,417) (823,788)

Financial assets held-for-trading (1,905,789) (263,951)

Financial assets at fair value through profit or loss (665,571) (908,262)

Loans (854,699) (200,437)

Derivative financial assets (413,267) (410,452)

Other assets (308,633) (144,534)

Financial liabilities held-for-trading (22,929) (213,066)

Financial liabilities at fair value through profit or loss 1,808,284 2,689,457

Deposits 756,361 436,992

Derivative financial liabilities 357,123 668,791

Defined benefit liabilities (12,586) (194,535)

Provisions (389) -

Other liabilities 127,217 222,375

(1,572,295) 858,590

Interest received 627,620 658,653

Interest paid (242,614) (296,739)

Dividends received 52,380 63,905

Income taxes paid (30,081) (42,712)

net cash provided by (used in) operating activities (1,345,772) 942,226

35


Daewoo Securities Co., Ltd.



cash flows from investing activities

Proceeds from disposal of property and equipment ￦ 3 57

Proceeds from disposal of intangible assets 2,488 3,232

Acquisitions of investments in subsidiaries (57,621) (67,000)

Proceeds from disposal of investments in subsidiaries 3,778 111,589

Decrease (increase) of available-for-sale financial assets, net 340,621 (2,946,927)

Acquisitions of property and equipment (12,829) (3,808)

Acquisitions of intangible assets (12,362) (11,488)

Decrease in guarantee deposits 985 3,960

net cash provided by (used in) investing activities 265,063 (2,910,385)

cash flows from financing activities

Increase in borrowings, net 1,149,245 831,805

Issuance of bonds 202,926 210,000

Dividends paid (84,050) -

net cash provided by financing activities 1,268,121 1,041,805

Effect of exchange rate fluctuations on cash and cash equivalents held (322) 452

net increase (decrease) in cash and cash equivalents 187,090 (925,902)

cash and cash equivalents at the beginning of the year 185,059 1,110,961

cash and cash equivalents at the end of the year ￦ 372,149 185,059

09. statements of appropriations of Retained earningsfor the years ended December 31, 2015 and 2014




Retained earnings before appropriation

Balance at the beginning of the year ￦ 1,577,819 1,522,693

Profit for the year 285,812 192,816

Remeasurements of defined benefit plans - (44,747)

1,863,631 1,670,762

Appropriation of retained earnings

Legal reserve 11,102 8,405

Regulatory reserve for credit losses 5,855 488

Dividends:

Cash dividends(Common stock - Current period: ￦330 (6.6%) - Prior period: ￦250 (5.0%) Preferred stock - Current period: ￦363 (7.3%) - Prior period:￦275 (5.5%) 111,015 84,050

127,972 92,943

Unappropriated retained earnings to be carried over to subsequent year ￦ 1,735,659 1,577,819

37


10. independent auditors’ Report (consolidated)

the Board of Directors and shareholders Daewoo securities co., ltd.

We have audited the accompanying consolidated financial statements of Daewoo Securities Co., Ltd. and its subsidiaries (collectively the “Group”), which comprise the consolidated statements of financial position as of December 31, 2015 and 2014, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the consolidated Financial statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Korean International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Korean Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2015 and 2014 and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Korean International Financial Reporting Standards.

KPMG Samjong Accounting Corp. Seoul, KoreaFebruary 26, 2016

This report is effective as of February 26, 2016, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

Based on a report originally issued in Korean

independent auditors’ Report (separate)

the Board of Directors and shareholders Daewoo securities co., ltd.

We have audited the accompanying separate financial statements of Daewoo Securities Co., Ltd. (the “Company”), which comprise the separate statements of financial position as of December 31, 2015 and 2014, the separate statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the separate Financial statements

Management is responsible for the preparation and fair presentation of these separate financial statements in accordance with Korean International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

auditors’ Responsibility

Our responsibility is to express an opinion on these separate financial statements based on our audits. We conducted our audits in accordance with Korean Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

opinion

In our opinion, the separate financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2015 and 2014 and its financial performance and its cash flows for the years then ended in accordance with Korean International Financial Reporting Standards.


This report is effective as of Febrary 26, 2016, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.


39


11. Review Report on internal control over Financial Reporting

the chief executive officer Daewoo securities co., ltd.

We have reviewed the accompanying Report on the Operations of Internal Control over Financial Reporting (“ICFR”) of Daewoo Securities Co., Ltd. (the “Company”) as of December 31, 2015. The Company's management is responsible for design and operations of its ICFR, including the reporting of its operations. Our responsibility is to review management's assessment of ICFR and issue a report based on our review. In the accompanying report of management’s assessment of ICFR, the Company’s management stated: “Based on the assessment of the operations of the ICFR, no material weakness existed and the Company’s ICFR has been effectively designed and operated as of December 31, 2015 in accordance with the ICFR standard”.

We conducted our review in accordance with ICFR Review Standards, issued by the Korean Institute of Certified Public Accountants. Those Standards require that we plan and perform the review to obtain assurance of a level less than that of an audit as to whether Report on the Operations of Internal Control over Financial Reporting is free of material misstatement. Our review consists principally of obtaining an understanding of the Company’s ICFR, inquiries of Company personnel about details of the report, and tracing to related documents we considered necessary in the circumstances. We have not performed an audit and, accordingly, we do not express an audit opinion.

The Company’s ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with K- IFRS. Because of its inherent limitations, however, ICFR may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on our review, nothing has come to our attention that causes us to believe that Report on the Operations of Internal Accounting Control System as of December 31, 2015 is not prepared in all material respects, in accordance with ICFR Framework issued by the Internal Accounting Control System Operation Committee.

This report applies to the Company’s ICFR in existence as of December 31, 2015. We did not review the Company’s ICFR subsequent to December 31, 2015. This report has been prepared for Korean regulatory purposes, pursuant to the External Audit Law, and may not be appropriate for other purposes or for other users.



Daewoo Securities’ (hereafter “the Company”) Audit Committee reported on the following audit results concerning the Company’s accounting and business for its 47th fiscal year, from January 1st, 2015 to December 31st, 2015.

1. auditing Method outline

(a) audit on accounting

We audited the consolidated and separate financial statements for the Company’s 47th fiscal year and applied the following procedures.

First, we had the Company’s internal control officer and executive members in charge report on the internal accounting control system in order to enhance accountability and transparency in the Company’s accounting disclosure, referring to the audit results and opinions that were submitted by an independent auditor.

Second, we had the Company’s Audit Department inspect the accounting ledgers and relevant documents. They then verified the financial statements and the attached specifications based on the results. The inspection was carried out by applying the contrast, actual inspection, session, inquiry and other proper audit procedures when executing the audit.

(B) audit on the Business

We attended BOD meetings and other major meetings and received reports on the Company’s business from directors, when necessary, for the purpose of a business inspection. We also looked over important related business documents while doing our due diligence.

2. Matters on the statements of consolidated and separate statements of Financial position & consolidated and separate statements of comprehensive income

The assets and profit and loss state of the Company are stated adequately according to Korean law and the Company’s Articles of Incorporation (“the Articles”) in the consolidated and separate statements of financial position, and the consolidated and separate statements comprehensive income.

3. Matters on the statements of appropriation of Retained earnings

The statements of appropriations of retained earnings is made out of adequately under Korean law and the Articles.

4. Matters on the Business Report

The general financial health of the Company is indicated accurately in the business report under Korean law and the Articles.

February 23, 2016Daewoo securities’ audit committee

Chair of the Committee

Hwancheol Byun

Member of the Committee

Byungil Kim

Member of the Committee

changwon lee

12. audit committees’ ReportBased on a report originally issued in Korean

41

Mirae asset Daewoo

Company Overview 43

History 44

Organization Chart 45

Domestic Network 46

Overseas Network 48

AppEnDix


3. type and number of outstanding stocks

(Unit: Shares, KRW 1,000)

preferred stocks 4.13%

no. of Shares 14,075,750Amount 70,378,750

common stocks 95.87%

no. of Shares 326,700,891Amount 1,633,504,455

no. of shares

340,776,641amount

1,703,883,205

1. organization

■ 5 business divisions, 26 units (6 retail sales units / 11 business units / 9 support units)

■ 73 departments (7 offices / 63 departments / 2 centers / 1 legal support team) / 14 teams (6 teams in retail sales units / 8 teams at headquarters)

■ 102 sales points (1 headquarters branch / 16 pB classes / 82 branches / 3 stores)

■ overseas network: 9 overseas subsidiaries / 3 overseas representative offices

■ Regional branch networks

gyeonggi-do & incheon 19(2 PB Classes / 16 Branches / 1 Store)

southern provinces 14(2 pB Classes / 12 Branches)

gangbuk (northern seoul) 16(1 Headquarters branch / 2 PB Classes / 13 Branches)

gangnam (southern seoul) 19(7 PB Classes / 11 Branches / 1 Store)

Western provinces 17(2 PB Classes / 14 Branches / 1 Store)

eastern provinces 17(1 PB Class / 16 Branches)

total 102

43

01. company overview

2. Workforce (Unit: Person)

* Decrease by 49 persons year-on-year as of 2015 year end (12 persons at sales branches, and 37 persons at the head office)

tOtAl

2,995Sales

Branches

1,420

Head Office

1,575

02. History


Dec. 16 Signed a business alliance with Privé Services Korea, an overseas robo advisory firm

Dec. 09 Signed a business entrustment contract for investment recommendation with VIP Research & Management

oct. 22 South Mountain Asset Management Limited commenced business

oct. 22 Signed a business alliance with Value System for robo advisory business

oct. 19 Signed a business alliance with iFA to secure multi-channel customers

oct. 14 Signed a business alliance with Data & Analytics for robo advisory business

oct. 07 Signed a business alliance with KKR on PEF and hedge funds

oct. 07 Signed a business alliance with Quarterback Lab for robo advisory busines

sep. 17 Signed a business alliance with December & Company and AIM for robo advisory business

Jul. 20 Signed a business alliance with Hansol Education Happiners

Jun. 17 Signed an ‘MOU on attracting personal pension customers’ with the Korea Tax Accountant Association

May 21 Signed a business alliance with the Ministry of Education and Hankuk University of Foreign Studies

apr. 14 Signed a business alliance with Korea FinTech Forum

Mar. 25 Signed a business alliance on a ‘total financial education network’ with the Financial Supervisory Service

Mar. 10 Signed a business alliance with the Seoul branch of the Bank of Communications of China

Signed an MOU on ‘Global Investment Partnership PEF Joint Overseas Investment’ with Lotte, KDB Bank, and Cosmo Asset Management

Mar. 04 Signed a business alliance with AT Asset

Dec. 31 KoFC, KDB Financial Group and KDB Bank merged, with the majority shareholder changed from KDB Financial Group to KDB Bank

oct. 20 Signed a business alliance with Bestro

oct. 08 Indonesian subsidiary received an underwriting license Liquidated the MidEum Co., Ltd.

sep. 25 Signed a business alliance with W-Asset

apr. 24 MNT 2.7 billion capital increase of Mongolia subsidiary

apr. 10 Signed a business alliance with Novus Aviation Capital (Dubai)

Feb. 28 Established Daewoo Trading Asia Limited

Dec. 04 Singed a business alliance with Berjaya Land (Malaysia)

sep. 09 Signed a business alliance with KT for joint marketing

aug. 01 Established a local subsidiary in Indonesia

May 29 Signed an MOU with Mongolia’s largest commercial bank, Golomt Bank

Established a local subsidiary in Mongolia

apr. 18 Acquired management rights to eTrading of Indonesia with an 80 percent share

nov. 23 Signed a business alliance with Bank of China International

oct. 18 Signed a business alliance with Bank of China (Hong Kong)

oct. 16 Signed a co-development agreement for the Tees Biomass Power Project (UK)

sep. 20 Established MidEum Co., Ltd. as a subsidiary

Jul. 12 Established a local subsidiary in Singapore

May 03 USD 100 million capital increase of Hong Kong subsidiary

Mar. 14 Signed a business alliance with Mercury Capital Advisors (US)

Feb. 12 Signed a business alliance with Marshall Wace (UK)

Dec. 18 Signed a business alliance with IS Investment company (Turkey)

Dec. 06 USD 100 million capital increase of Hong Kong subsidiary

nov. 07 Domestic credit rating upgraded to AA+

nov. 03 Payment for rights offering

aug. 30 Tokyo representative office was promoted to branch level

aug. 12 Established Daewoo Investment Advisory (Beijing) Co., Ltd.

Jan. 17 Given Baa2 ranking by Moody’s

oct. 28 Launch of the KDB Financial Group, with the majority shareholder changed from KDB Bank to KDB Financial Group

oct. 01 Spun off from the Daewoo Group

oct. 20 Renamed Daewoo Securities Co., Ltd.

sep. 26 Initial Public Offering: paid-in capital increased toKRW 2 billion

sep. 01 Merged with Daewoo Corporation

sep. 23 Establishment of Dong Yang Securities Co., Ltd., former Daewoo Securities

2015 2012

2011

2009

1999

1983

1975

1973

19702013

2014

03. organization chart


45

audit committee

general Meeting

Board of Directors

Wealth Management Business Division

investment Banking Business Division

sales & tradingBusiness Division

Wholesale Business Division

strategic planning Division

BoD secretariat

audit Department

Smart financial unit

Marketing unit

gangnam (Southern Seoul) Retail Sales unit

gangBuk (northern Seoul) Retail Sales unit

gyeonggi-do & incheon Retail Sales unit

namBu (Southern provinces) Retail Sales unit

DongBu (Eastern provinces) Retail Sales unit

SeoBu (western provinces) Retail Sales unit

pension Business unit

Coverage unit

Corporate investment finance unit

project investment finance unit

fixed income trading unit

Derivatives unit

proprietary trading unit

institutional Business unit

financial products wholesale unit

Strategic planning unit

global Business Strategy unit

ceo

prime Brokerage Service Unit

financial product Development & trading Unit

Business Support unit

Risk Management unit

Compliance unit

Research Center

information technology Center

45

04. Domestic network


unit Branch address phone

Headquarters Mirae Asset Daewoo Bldg., 56, Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul 82-2-768-3355

Southern Seoul

PB Class Galleria 4,5F, The Trinity Place, 416, Apgujeong-ro, Gangnam-gu, Seoul 82-2-3445-9966

PB Class Dogok 3F, SEI Tower, 39, Eonju-ro 30-gil, Gangnam-gu, Seoul 82-2-573-5599

PB Class Banpo 4F, Raemian Firstige Apt., Arcade, 275, Banpo-daero, Seocho-gu, Seoul 82-2-534-0142

PB Class Apgujeong 2F, Yunggi Bldg., 210, Apgujeong-ro, Gangnam-gu, Seoul 82-2-545-0361

PB Class Yeoksamdong 1,2F Pungrim Bldg., 124, Teheran-ro, Gangnam-gu, Seoul 82-2-556-9441

PB Class Yeoksam 3F, Aju Bldg., 201, Teheran-ro, Gangnam-gu, Seoul 82-2-568-8866

PB Class Olympic 2F, #C, Olympic Sunsuchon APT., Arcade, 1178, Yangjae-daero, Songpa-gu, Seoul 82-2-404-8851

PB Class Jamshil 4F, Sigma Tower, 289, Olympic-ro, Songpa-gu, Seoul 82-2-412-5588

PB Class Teheran Valley 1,2F, Haesung Bldg., 504, Teheran-ro, Gangnam-gu, Seoul 82-2-564-3355

Garak 3F, Munjung Plaza, 80, Jungdae-ro, Songpa-gu, Seoul 82-2-3401-5544

Gyodae Station 2F, Gungang Bldg., 138, Seochojungang-ro, Seocho-gu, Seoul 82-2-592-5959

Daechi 4F, Daewon Bldg., 2947, Nambusunhwan-ro, Gangnam-gu, Seoul 82-2-3411-3111

Bangbae 3F, Soam Bldg.,208, Bangbae-ro, Seocho-gu, Seoul 82-2-3477-2251

Seochodong 3F, Samsung Fire&Marine Insurance Seocho Tower, 355, Gangnam-daero, Seocho-gu, Seoul 82-2-3474-8383

Songpa 3F, Daejun Bldg., 364, Baekjegobun-ro, Songpa-gu, Seoul 82-2-419-5160

Hanti 2F, D'Mark Bldg., 408, Dogok-ro, Gangnam-gu, Seoul 82-2-561-1133

northern Seoul

PB Class Gwanghwamun 2F, Royal Bldg., 19, Saemunan-ro 5-gil, Jongno-gu, Seoul 82-2-736-9170

PB Class Myeongdong 6F, Gaeyang Bldg., 6, Myeongdong 3-gil, Jung-gu, Seoul 82-2-777-5400

PB Class Seoul Station 2F, Seoul Square Bldg., 416, Hangang-daero, Jung-gu, Seoul 82-2-774-1921

PB Class Finance Center 15F, Seoul Finance Bldg., 136, Sejong-daero, Jung-gu, Seoul 82-2-734-9944

Konkuk Univ. Station 3F, Star City the Classic 500, 92, Neungdong-ro, Gwangjin-gu, Seoul 82-2-454-8484

Nowon 4F, Kyobo Bldg., 467, Nohae-ro, Nowon-gu, Seoul 82-2-934-2511

Mapo 2F, S-oil Bldg., 192, Baekbeom-ro, Mapo-gu, Seoul 82-2-719-8861

Seongdong 3F, Narae Tower, 234, Gosanja-ro, Seongdong-gu, Seoul 82-2-2297-4466

Sinchon 3F, Geochon Bldg., 67, Sinchon-ro, Seodaemun-gu, Seoul 82-2-332-2321

Yongsan 2F, LS Yongsan Tower, 92, Hangang-daero, Yongsan-gu, Seoul 82-2-797-9696

Janghanpyeong 1F, Geumpung Bldg., 432, Cheonho-daero, Seongdong-gu, Seoul 82-2-2248-8700

Cheongnyangni 1F, Seongil Bldg., 28, Hongneung-ro, Dongdaemun-gu, Seoul 82-2-962-4911

westernSeoul

PB Class Mokdong Central 3F, Mokdong Trapalace Eastern Avenue, 299, OMok-ro, Yangcheon-gu, Seoul 82-2-2601-6191

Gangseo 2F, Wonpung Bldg., 301, Hwagok-ro, Gangseo-gu, Seoul 82-2-2691-5774

Gaebongdong 2F, Dorco Bldg., 323, Gyeongin-ro, Guro-gu, Seoul 82-2-2616-6655

Gwanak 3F, Dongjin Bldg., 217, Gwanak-ro, Gwanak-gu, Seoul 82-2-875-5454

Geumcheon 3F, DDS Bldg., 415, Siheung-daero, Geumcheon-gu, Seoul 82-2-858-5511

Mokdong 2F, Booyoung Green Tower 2, 401, Mokdongdong-ro, Yangcheon-gu, Seoul 82-2-2649-0568

Yeongdeungpo 5F, Shinhan Bank Bldg., 27, Yeongjung-ro, Yeongdeungpo-gu, Seoul 82-2-2632-8741

Sales Department 1,2F, Mirae Asset Daewoo Bldg., 56, Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul 82-2-768-3114

incheon/gyeonggi

PB Class Bucheon 5F, Bucheon Nonghyup Bldg., 187, Sinheung-ro, Wonmi-gu, Bucheon-si, Gyeonggi-do 82-32-667-7711

PB Class Bupyeong 5F, Geumnam Bldg., 21, Bupyeong-daero, Bupyeong-gu, Incheon 82-32-505-8451

PB Class Seohyeon 4F, KOSCOM Bldg., 27, Hwangsaeul-ro 360beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do 82-31-708-0528

PB Class Suwon 2F, The Korean teachers credit union Gyunggihoegwan, 178, Gwongwang-ro, Paldal-gu, Suwon-si, Gyeonggi-do 82-31-224-0123

PB Class Ilsan 3F Hansol Core, 1406, Jungang-ro, Ilsanseo-gu, Goyang-si, Gyeonggi-do 82-31-921-3101

PB Class Pyeongchon 3F, #A, Pyeongchon Acro Tower, 230, Simin-daero, Dongan-gu, Anyang-si, Gyeonggi-do 82-31-386-2323

Dongtan 4F, Winner Star, 163, Dongtanwoncheon-ro, Hwaseong-si, Gyeonggi-do 82-31-8015-0088

Bundang 2F, Intellige I Kins tower, 8, Seongnam-daero 331beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do 82-31-718-3311

Sanbon 3F, Kookmin Bank Bldg., 16-26, Sanbon-ro 323beon-gil, Gunpo-si, Gyeonggi-do 82-31-394-0940

Ansan 3F, BYC Bldg., 181, Gwangdeok-daero, Danwon-gu, Ansan-si, Gyeonggi-do 82-31-482-0055

Yeonsu 2F, Somang Bldg., 189, Meonugeum-ro, Yeonsu-gu, Incheon 82-32-813-5588

Uijeongbu 2F, Gusung Tower, 251, Sinheung-ro, Uijeongbu-si, Gyeonggi-do 82-31-877-8772

Incheon 1,2F, Mirae Asset Daewoo Bldg., 172, Jemullyang-ro, Jung-gu, Incheon 82-32-763-4401

Juan 3,4F, Mirae Asset Daewoo Bldg., 407, Gyeongin-ro, Nam-gu, Incheon 82-32-423-1100

Hwajeong 2F, KTOP REITs Bldg., 72, Hwajung-ro, Deogyang-gu, Goyang-si, Gyeonggi-do 82-31-938-9911

Songdo Financial Store 1F, #A, The Sharp Central Park I, 232, Central-ro, Yeonsu-gu, Incheon 82-32-832-7600

Pangyo PIB Store 3F, #B, Samhwan Hipex, 230, Pangyoyeok-ro, Bundang-gu, Seongnam-si, Gyeonggi-do 82-31-698-3570


47

unit Branch address phone

Busan/gyeongnam

PB Class Dongnae 3F, Mirae Asset Daewoo Bldg., 225, Chungnyeol-daero, Dongnae-gu, Busan 82-51-554-4111

PB Class Beomil 1F, Mirae Asset Daewoo Bldg., 129, Jaseong-ro, Dong-gu, Busan 82-51-644-0077

PB Class Seomyeon 7F, Ioncity Bldg, 74, Seomyeon-ro, Busanjin-gu, Busan 82-51-806-6001

PB Class Changwon 2F, Mirae Asset Daewoo Bldg., 106, Yongji-ro, Seongsan-gu, Changwon-si, Gyeongsangnam-do 82-55-282-6900

PB Class Haeundae 7F, Marina Center, 154, Haeundaehaebyeon-ro, Haeundae-gu, Busan 82-51-743-1211

Geoje 2,3F, Aju Businesstel, 54, Okpodaecheop-ro, Geoje-si, Gyeongsangnam-do 82-55-688-0134

Gimhae 2F, Balgeun Medical Center, 74, Naeoejungang-ro, Gimhae-si, Gyeongsangnam-do 82-55-324-2421

Masan 2F, Muhak Bldg., 628 3·15 De-ro MasanHoiwon-gu, Changwon-si, Gyeongsangnam-do 82-55-297-8851

Busan 5F, Korea Development Bank Bldg., 136, Daecheong-ro, Jung-gu, Busan 82-51-242-3351

Sasang 4F, M-City Bldg., 200, Sasang-ro, Sasang-gu, Busan 82-51-327-8801

Saha 3F, Samsung Electronics Bldg., 1427, Nakdongnam-ro, Saha-gu, Busan 82-51-293-6644

Jeonju 3F, Mirae Asset Daewoo Bldg., 1036, Jinju-daero, Jinju-si, Gyeongsangnam-do 82-55-742-3444

Changwon City 2F, The City 7 Education & Culture Center, 320, Woni-daero, Uichang-gu, Changwon-si, Gyeongsangnam-do 82-55-600-6000

Tongyoung 2F, Dongin Bldg., 33, Mujeon-daero, Tongyeong-si, Gyeongsangnam-do 82-55-643-8881

Daegu/gyeongbuk

PB Class Daegu 2F, Doosan We've The Zenith, Arcade, 2435, Dalgubeol-daero, Suseong-gu, Daegu 82-53-751-0345

PB Class Seongseo 4F, National Pension Corporation Bldg, 4F National Pension Corp. Daegu Bldg., 419, Seongseo-ro, Dalseo-gu, Daegu 82-53-582-4567

PB Class Ulsan South 3F, Mirae Asset Daewoo Bldg., 251, Samsan-ro, Nam-gu, Ulsan 82-52-258-7766

PB Class Pohang 1F, Mirae Asset Daewoo Bldg., 271, Jungheung-ro, Buk-gu, Pohang-si, Gyeongsangbuk-do 82-54-277-6655

Gyeongsan 2F, Doryun Bldg., 233, Gyeongan-ro, Gyeongsan-si, Gyeongsangbuk-do 82-53-811-2211

Gyeongju 1F, KT Gyeonju Office, 125, Hwarang-ro, Gyeongju-si, Gyeongsangbuk-do 82-54-776-5533

Gumi 2F, Korea Development Bank Bldg., 107, Songjeong-daero, Gumi-si, Gyeongsangbuk-do 82-54-451-1511

Daegu Central 2F, KT Smart Medi Tower, 167, Dongdeok-ro, Jung-gu, Daegu 82-53-421-0141

Sangin 2F, Sangin Plaza, 260, Wolgok-ro, Dalseo-gu, Daegu 82-53-638-4100

Andong 1F, Mirae Asset Daewoo Bldg., 25, Yeongga-ro, Andong-si, Gyeongsangbuk-do 82-54-841-2266

Ulsan 2F, Daeho Bldg., 487, Beonyeong-ro, Jung-gu, Ulsan 82-52-244-8441

Chilgok 2F, Wooyoung Palace, 411, Chilgokjungang-daero, Buk-gu, Daegu 82-53-325-5533

gwangju/Jeonnam & Jeongbuk

PB Class Gwangju 1F, Mirae Asset Daewoo Bldg., 168, Geumnam-ro, Dong-gu, Gwangju 82-62-227-6605

Gunsan 2F, You & Me Plaza, 70, Hanaun-ro, Gunsan-si, Jeollabuk-do 82-63-443-1711

Duamdong 5F, Donggang Bldg., 152, Dongmun-daero, Buk-gu, Gwangju 82-62-267-8844

Mokpo 3F, Ilhae Bldg., 360, Baengnyeon-daero, Mokpo-si, Jeollanam-do 82-61-285-9911

Suwon 2F, Dongwon Bldg., 140, Jangsin-ro, Gwangsan-gu, Gwangju 82-62-956-9449

Suncheon 2F, Kookmin Bank Bldg., 149, Yeonhyangbeonyeong-gil, Suncheon-si, Jeollanam-do 82-61-724-4422

Yeosu 2F, Korea Development Bank Bldg., 30, Sicheong-ro, Yeosu-si, Jeollanam-do 82-61-663-7997

Iksan 4F, Eld Town, 426, Hana-ro, Iksan-si, Jeollabuk-do 82-63-857-8811

Jeonju 1F, Mirae Asset Daewoo Bldg., 213, Girin-daero, Wansan-gu, Jeonju-si, Jeollabuk-do 82-63-288-0011

Hyojadong 1F, Donga Bldg., 110, Yongmeori-ro, Wansan-gu, Jeonju-si, Jeollabuk-do 82-63-227-1414

Daejoen/Chungnam &

Chungbuk

PB Class Dunsan 2F, Finance Tower, 50, Dunsanjung-ro, Seo-gu, Daejeon 82-42-483-6555

PB Class Cheongju 2F, Mirae Asset Daewoo Bldg., 4, Sangdang-ro 81beon-gil, Sangdang-gu, Cheongju-si, Chungcheongbuk-do 82-43-250-3311

Daejeon 2F, Hansol Bldg., 149, Jungang-ro, Jung-gu, Daejeon 82-42-253-3301

Dong Daejeon 2F, Daedeok Medical Bldg., 36, Songchonbuk-ro 36beon-gil, Dong-gu, Daejeon 82-42-627-4100

Asan 5F, UL City, 22, Chungmu-ro, Asan-si, Chungcheongnam-do 82-41-549-2233

Jecheon 2F, Daemyeong Bldg., 123, Uirim-daero, Jecheon-si, Chungcheongbuk-do 82-43-642-6600

Cheonan Asan 3F, Woosung Medipia Bldg., 147, Gosokcheol-daero, Baebang-eup, Asan-si, Chungcheongnam-do 82-41-562-0311

Sejong Financial Store 2F, Jungang Town, 194, Jeoljae-ro, Sejong 82-44-866-2033

gangwon

Donghae 2F, Donghae Bldg., 56, Cheongok-ro, Donghae-si, Gangwon-do 82-33-532-3340

Sokcho 2F, Bogwang Bldg., 3, Jungang-ro, Sokcho-si, Gangwon-do 82-33-636-3900

Wonju 4F, SK Broadband Bldg., 48, Wonil-ro, Wonju-si, Gangwon-do 82-33-745-1651

Chuncheon 2F, Woori Bank Bldg., 59, Jungang-ro, Chuncheon-si, Gangwon-do 82-33-251-8851

Jeju Jeju 2F, Mirae Asset Daewoo Bldg., 44, Gwandeok-ro, Jeju-si, Jeju-do 82-64-755-8851

05. overseas network

Korea

MiRAE ASSEt DAEwOO

Mirae Asset Daewoo Bldg., 56, Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul 07330, KoreaTel: +82-2-500-0622

Fax: +82-2-768-2119

uK

DAEwOO SECuRitiES (EuROpE) ltD.

41st Floor, Tower 42, 25 Old Broad St., London, U.K., EC2N 1HQTel: +44-20-7982-8000Fax: +44-20-7982-8040

usa

DAEwOO SECuRitiES (AMERiCA) inC.

320 Park Avenue, 31st Floor, New York, NY, USA, 10022Tel: +1-212-407-1000Fax: +1-212-407-1010

Hong Kong

DAEwOO SECuRitiES (HOng kOng) ltD.

Suites 1109–1114, Two International Finance Centre, 8 Finance Street, Central, Hong KongTel: +852-2845-6332Fax: +852-2845-5374

Daewoo investment asia


south Mountain asset Management


singapore

DAEwOO SECuRitiES (SingApORE) ptE. ltD.

Six Battery Road #11-01, Singapore, 049909Tel: +65-6671-9845Fax: +65-6226-3221

Mongolia

DAEwOO SECuRitiES (MOngOliA) llC

#406, Blue Sky Tower, Peace Avenue 17, 1 Khoroo, Sukhbaatar District, Ulaanbaatar, Mongolia, 14240Tel: +976-7011-0807Fax: +976-7011-0899

indonesia

pt. DAEwOO SECuRitiES inDOnESiA

Equity Tower Building Lt.50, Sudirman Central Business District Jl., Jendral Sudirman, Kav. 52-53, Jakarta Selatan, Indonesia, 12190Tel: +62-21-515-1140Fax: +62-21-574-1443

china

DAEwOO invEStMEnt ADviSORy (BEiJing) CO., ltD.

2401B, 24th Floor, East Tower, Twin Towers, B-12 Jianguomenwai Avenue, Chaoyang District, Beijing, China, 100022Tel: +86-10-6567-9699Fax: +86-10-6567-7899

Japan

tOkyO REpRESEntAtivE OffiCE

7F, Yusen Building, 2-3-2, Marunouchi, Chiyoda-ku, Tokyo, Japan, 100-0005Tel: +81-3-3211-5511Fax: +81-3-3211-5544

china

SHAngHAi REpRESEntAtivE OffiCE

Room 38T31, 38F SWFC, 100 Century Avenue, Pudong New Area, Shanghai, China, 200120Tel: +86-21-5013-6391Fax: +86-21-5013-6395

Vietnam

HOCHiMinH REpRESEntAtivE OffiCE

Suites 2103, Saigon Trade Center, 37 Ton Duc Thang St, Dist. 1, HCMC, VietnamTel: +84-8-3910-7715Fax: +84-8-3910-7716


HeaDquarters

overseas suBsiDiaries

overseas oFFiCes


■ fiscal year ends December 31

■ general shareholders’ meeting on March 25, 2016

■ Mirae asset Daewoo investor Relations team

Mirae Asset Daewoo Bldg., 56, Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul

07330, Korea Phone: +82-2-768-3903/2103 Fax: +82-2-768-2119 E-mail: [email protected]

iR information

Mirae A

sset Daew

oo 2015 Annual R

eport Jan. 1, 2015 ~

Dec. 31, 2015

To conserve resources and limit environmental impact, this printed report has been printed on eco-friendly paper.

Documents

New Business Performance Risk Management Social Contributions · 2016. 10. 5. · Dear shareholders and customers, in 2016 Mirae asset Daewoo will emerge anew to a brighter future