2020 2020 MIRAE ASSET DAEWOO INTEGRATED REPORT REPORT DAEWOO INTEGRATED 2020 MIRAE ASSET MIRAE ASSET DAEWOO INTEGRATED REPORT GLOBAL INVESTMENT PARTNER INVESTMENT GLOBAL About This Report The 2020 Mirae Asset Daewoo Integrated Report was created with an aim of reviewing our sustainability management activities and our achievements, and thus providing stakeholders with information in a transparent manner. Reporting Status This report is the ninth sustainability report since we published a sustainability report for the first time in the industry in 2006 and is the fourth after the merger with Mirae Asset Securities in December 2016. In addition, this report has been developed as an Integrated Report which consolidates an annual report and a sustainability report since 2018. Reporting Method and Period This report is compiled in accordance with the Core option of the Global Reporting Initiative (GRI) Standards, a global standard for sustainability reports, and the framework of the International Integrated Reporting Council (IIRC). It is also aligned to the 10 principles of the UN Global Compact, which the company has been upholding since 2006. The reporting period of this report is from January 1st 2019 to December 31st 2019, and some topics disclose three-year data from 2017 for trend comparison. Both financial information and non- financial information are reported according to the company’s fiscal years following our disclosure policy, and information that does not fit such criteria has footnotes added. This report also includes information on major activities executed in the first half of 2020. Reporting Scope The scope of information in this report encompasses the company headquarters, client center, domestic branch network, overseas subsidiaries and representative offices, and other areas where Mirae Asset Daewoo performs business activities. The reporting scope of the data provided in this report satisfies at least 75% of the company’s sales on a consolidated basis. However, as for overseas business sites, such as overseas subsidiaries and representative offices, the scope of reporting includes business performance only for data collection is difficult due to physical limitations in terms of material management and assessment. Independent Assurance Information This report has been assured by an independent assurance service provider, to enhance its internal and external credibility. Also, the Address Mirae Asset CENTER 1 Bldg., 26, Eulji-ro 5-gil, Jung-gu, integrity of the reporting processes as well as the accuracy and Seoul 04539, Korea credibility of its contents have been ensured by developing this report Phone +82-2-3774-6755 in accordance with international standards including International Standard on Assurance Engagements (ISAE) 3000. The Independent Fax +82-505-085-6755 Assurance Statement is attached in the Appendix I section (P. 106 -107). E-mail [email protected] CONTENTS Introduction 04 Mirae Asset Daewoo at a Glance 06 CEO Message 08 Company Profile 12 G.I.D.P Innovation 14 Business Overview Sustainability 20 Leading Future Finance Issue 28 Putting Clients First 34 Culture of Respect in the Workplace Management 42 Business Performance Discussion & Analysis 54 Social Contributions 59 Environmental Management Governance 62 Corporate Governance 66 Ethical Management 70 Risk Management 73 Information Protection Appendix I 76 Mirae Asset Financial Group 78 Financial Performance 98 Social Performance 100 Environmental Performance 101 Tax Policy 102 Materiality Test 104 Stakeholder Engagement 105 Verification of GHG Emissions Data Reports 106 Independent Assurance Statement 108 GRI Index 111 UNGC & UN SDGs 112 Organization Chart 113 Membership & Awards Appendix II 115 Notes to the Consolidated Financial Statements 2020 MIRAE ASSET DAEWOO INTEGRATED REPORT INTRODUCTION Mirae Asset Daewoo at a Glance Mirae Asset Investment Advisory (Beijing) Co. Ltd. Mirae Asset Securities HQ in Mongolia UTsK LLC South Korea Beijing Representative Office Shanghai Representative Office Mirae Asset Securities (HK) Ltd.1) Mirae Asset Securities (Vietnam) LLC Ho Chi Minh Representative Office PT. Mirae Asset Sekuritas Indonesia Mirae Asset Mirae Asset Mirae Asset Securities (UK) Ltd. Capital Markets Securities (India) Private (Singapore) Pte. Limited Ltd. 1) Hong Kong Special Administrative Region of the People’s Republic of China Shareholder Composition Shareholder’s name Number of shares Ownership (%) Mirae Asset Capital Co., Ltd. 133,492,000 20.28 National Pension Service 63,208,694 9.60 NAVER Corporation 47,393,364 7.20 Employee Stock Ownership Plan 1,439,584 0.22 Treasury Shares 108,723,602 16.52 Others 304,059,164 46.19 Total 658,316,408 100.00 * As of December 31st, 2019, issued total common shares basis 04 Mirae Asset Daewoo at a Glance CEO Message Company Profile G.I.D.P Innovation Business Overview Mirae Asset Securities (USA) Inc. Global Investment Partner, Mirae Asset Daewoo As a Korea’s leading financial institution, Mirae Asset Daewoo is making relentless endeavor to make a leap forward into becoming a global top-tier investment bank by continuously expanding our global business. Global Location Mirae Asset Wealth Management (Brazil) CCTVM Domestic Network 80 Overseas Subsidiaries 11 Overseas Representative Offices Mirae Asset Wealth Management (USA) Inc. 3 * As of March 31st, 2020 Total Assets (Unit: KRW trillion) Equity Capital (Unit: KRW trillion) Total Client Assets (Unit: KRW trillion) 133.1 9.2 239.1 Market Share in Brokerage Commissions of Credit Ratings Equity Securities Bonds Commercial Foreign AA paper A1 bonds Baa2 BBB 10.1% Korea Ratings, Korea Investors Service, Moody’s S&P NICE Investors Service * As of December 31st, 2019, consolidated basis 05 2020 MIRAE ASSET DAEWOO INTEGRATED REPORT INTRODUCTION CEO Message Dear clients, shareholders and all other stakeholders of Mirae Asset Daewoo, I would like to extend my utmost gratitude for your unwavering support and encouragement for our continued success. It is my great pleasure to have the opportunity to share our financial achievements in 2019, our economic, social, and governance (ESG) outcomes that we have pursued to fulfill our social responsibilities that meet global standards, as well as our vision for the future through this 2020 Integrated Report. 2019 was a year when Mirae Asset Daewoo gained confidence that we can grow into a top-tier global investment bank (IB) beyond Asia. We achieved record-high performance, and our equity capital was raised to KRW 9.2 trillion, thereby solidifying our leading position in Korea as a mega- sized IB. By fully exploiting our investment capabilities, we managed to increase our investment assets in Korea and overseas to KRW 7.5 trillion, and achieved profitable growth in areas of IB, principal investments (PI), and trading. Furthermore, we became the first securities company in Korea that exceeded KRW 100 billion in net profit before tax generated from overseas subsidiaries by recording KRW 170 billion. Recently, investors have been expanding the portion of the socially responsible investment (SRI) that takes a corporate’s sustainable growth into consideration. In response, Mirae Asset Daewoo officially announced its will to pursue sustainable management while faithfully fulfilling the role as a Korea’s leading investment company. As a result, in 2019 we succeeded in being listed on the renowned Dow Jones Sustainability Index (DJSI) World for eight consecutive years, an indicator that takes comprehensive evaluation of a company’s sustainability, and issued a USD-denominated SRI bond for the first time among securities companies in the world. A number of CSR activities are continuously rolled out in three areas of “nurturing talent”, “social welfare”, and “culture of sharing” with Mirae Asset Park Hyeon Joo Foundation at the center, in a bid to practice warm- hearted, caring capitalism. We also launched the “HopeChain Volunteer Corp” to conduct CSR activities driven by our employees, based on which we are making continuous efforts to reach the socially marginalized and thus build a healthy society. Dear client, shareholders and all other stakeholders, 2020 is a meaningful year as it opens a new decade. Mirae Asset Daewoo will take this year as a new turning point to enjoy the outcome of the seeds we have planted and take another leap forward into a company that Korean securities industry has not witnessed. Leveraging our outstanding equity capital, we will strive to solidify a virtuous cycle where the equity capital is used to expand investment into high quality assets, which in turn increases profits generated from the investment assets. To that end, we have set three resolutions as follows. 06 Mirae Asset Daewoo at a Glance CEO Message Company Profile G.I.D.P Innovation Business Overview First, we will further strengthen our global business. Globalization does not mean a mere expansion of global network and requires to strike the right balance between networks. The vision we have set is to enable stable asset management for our clients by providing them with diversified investment opportunities; achieve joint growth of the company with the global economy by pioneering into the global market; and create national wealth for the country through financial exports. Second, we will further strengthen investment into the future. Since 2017, we have been supplying venture capital exceeding KRW 1 trillion to small and medium-sized enterprises (SMEs) and innovative companies in a bid to contribute to enhancing the dynamic