The KOSPI 5000 mark could soon become a reality. While debates about the Korean stock market’s peak and bubble persist, the FOMO (fear of missing out) phenomenon is intensifying as investors rush into the market, fearing they might fall behind. Park Hyeon-joo, chairman of Mirae Asset Group, who led the paradigm shift from savings to investment 29 years ago with the slogan “From Savings to Investment,” is being closely watched for his perspective on the current situation. His investment foresight has resurfaced as a topic of public interest following the projected 15-fold return on Mirae Asset’s investment in Elon Musk’s SpaceX. Appointed as the private sector chairman of the National Growth Fund late last year, where is Park focusing his attention now?

◇The Current Market Is Driven by AI

-Why are stock prices rising despite poor economic conditions?

“This is an AI-driven market. Investors should focus on high-performing sectors rather than the overall index. This applies to South Korea, the U.S., and China alike. Several years ago, I predicted sectoral differentiation would deepen and decided to focus on sector ETFs. In 2018, we acquired Global X, an asset manager specializing in sector ETFs.”

-Did you anticipate such a historic surge?

“Fundamentally, the investment market is growing. It’s a market where investments are driven by growth potential. We should focus on innovative growth companies in the U.S., China, and elsewhere. While the index may rise, many individual stocks are declining. Investments should be made with a long-term view of global competitiveness.”

-How should we respond to the AI revolution?

“The AI revolution is progressing at a speed far beyond the transition from horse-drawn carriages to automobiles. A fundamental shift in economic, social, and policy thinking is urgently needed. South Korea is one of the few countries with a developed industrial structure. We must leverage accumulated technology and data to selectively and boldly invest in AI applications and physical AI to drive growth.”

-Can you elaborate?

“Just as Samsung created the world’s top smartphone, we can build global companies by investing aggressively in areas where we excel, such as semiconductor fabless, system semiconductors, and robotics. Like the U.S. investing heavily in humanoid robots and China in robotics, physical AI requires bold investment by nations and corporations. Mirae Asset plans to invest actively in this space. Engineering talent will become increasingly important. Mirae Asset will recruit and prioritize engineering graduates with exceptional support.”

-Is it too late to invest in the semiconductor sector now?

“Samsung Electronics and SK Hynix remain promising, and Chinese semiconductors also have significant growth potential. Investing in semiconductor ETFs in the U.S., South Korea, and China would be advisable. The space industry will also gain attention.”

-Was the acquisition of Global X successful?

“There was a bidding war with JP Morgan, but I flew to meet the founder and offered twice the competitor’s price, securing the acquisition. I believed sector-specific ETF investments would become mainstream, making Global X essential. Since the acquisition, its assets under management have grown over tenfold, making it a key subsidiary.”

◇Evaluating Founders When Making Investments

-The SpaceX investment’s success is making headlines. How did you decide to invest?

“I prioritize founders when making investments. Elon Musk is building infrastructure on Earth through Tesla and in space through SpaceX. It’s a unique, innovative company with few competitors. Infrastructure investment doesn’t just end there―it continuously creates revenue streams. Autonomous driving and urban air mobility (UAM) also require space communication networks.”

-You also invested in Musk’s AI venture, xAI.

“Musk’s business has three pillars: hardware infrastructure on Earth, hardware infrastructure in space, and the software to drive it. xAI handles the software. I was convinced his business would evolve around these three axes. Mirae Asset customers are expected to gain profits of approximately 1.5？2 trillion won from SpaceX and xAI investments. When starting new ventures, Mirae Asset always prioritizes customers. Although advised to invest my own funds, I chose to allocate the opportunity to our clients.”

-Why is Mirae Asset acquiring an exchange business?

“Robinhood, a U.S. platform enabling commission-free stock and cryptocurrency trading, aims to tokenize the S&P 500 in Europe for 24/7 trading. We’re acquiring a digital asset exchange to pursue ‘tokenization’ business. Beyond cryptocurrency trading, we aim to provide investors with a stable, sustainable investment model.”

◇Building an Ecosystem for Real-World Asset Token Investments

-What is tokenization business?

“Real-world asset (RWA) tokenization will become a new keyword in the investment industry. The securities market will undergo massive changes. For example, venture investments in South Korea are challenging due to a 7-year lock-up period and difficult exit strategies. Tokenizing venture investments could activate trading, spur startup investments, and boost liquidity, creating economic growth momentum. We’re exploring the acquisition of a digital asset exchange to build an RWA platform. By combining digital asset trading with RWA tokenization, we aim to create a structure for long-term wealth growth. This will contribute to national economic development. We plan to on-chainize 1,200 trillion won in customer assets, enabling safe 24/7 trading and management across any blockchain.”

-How do you view Bitcoin itself?

“It has established itself as an asset, but price volatility will remain high. Evolved financial firms, such as Google, may present new models to replace Bitcoin.”

◇Solving High Exchange Rates Requires Strengthening Industrial Competitiveness

-High exchange rates continue to be a problem.

“This stems from declining industrial competitiveness, excessive debt growth, China’s technological rise, and overinvestment in the U.S. It’s difficult to blame the current government entirely. Except for semiconductors, industrial competitiveness in most sectors is weakening, leading investors to prefer dollar investments over the won. We cannot resolve this by injecting dollars; structural industrial upgrades are the only solution. Developing the southern coastal belt for tourism, healthcare, education, and AI infrastructure could be a new national growth engine.”

-How can corporate and industrial competitiveness be strengthened?

“In South Korea, corporate competitiveness is now directly linked to the nation’s future. Current regulations and tax structures undermine this connection. After the foreign exchange crisis, Korean companies shifted to low-leverage, cash-reserve strategies, becoming overly reliant on internal cash flow. Large corporations should specialize in key industries and pursue bold investments through large-scale capital raising. The current conglomerate model, where companies diversify into various businesses, cannot compete with U.S. and Chinese firms. While communication and compromise between conglomerates are needed, the ‘holding company system’ is a stumbling block.”

-Why is the holding company system problematic?

“When companies merge through alliances, they often retain only partial stakes. However, the current holding company system effectively blocks holding companies from owning over 50% of subsidiaries. This structure hinders mergers and capital raising.”

-Why is capital raising difficult?

“Global tech giants raise tens to hundreds of trillions in new investment funds from capital markets. Korean conglomerates struggle due to holding company regulations. The holding company system makes it difficult to invest in new ventures like AI. Prioritizing dividends over equity issuance stifles investment and hinders long-term growth. Sustainable corporate growth requires innovative, long-term investments. Elon Musk could invest in Tesla, SpaceX, and xAI because he wasn’t constrained by a holding company.”

◇A Three-Tier Governance Structure as an Alternative to Holding Companies

-What is the alternative governance structure?

“In Korea, there’s a misconception that founders must be CEOs and board members for responsible management. Bill Gates and Jeff Bezos aren’t CEOs, and Elon Musk isn’t a board member, yet they make strategic decisions effectively. Transparent management is key, regardless of governance structure. Big Tech and financial firms exemplify this. CEOs shouldn’t dominate boards; boards should check CEO power. As a global strategy officer―not a CEO or board member―I focus solely on investment and strategy. Korean companies must strengthen their investment and strategy capabilities. Without this ‘investment instinct,’ corporate competitiveness will weaken in five years. I believe a three-tier structure―where major shareholders, the board, and the CEO divide roles and check each other―is more suitable for the current era.”

-You said you wouldn’t pass management rights to your children, yet your son recently joined a securities firm.

“Under the three-tier structure, he could potentially serve as an outside director overseeing investments and strategy. I still believe professional managers should handle operations, and anyone with ability should be eligible to lead Mirae Asset. If foundation laws change to resolve inheritance tax and voting rights issues, I plan to donate most of my shares to the Mirae Asset Hope Foundation.”

◇Diversified Investment in South Korea, the U.S., China, and India (25% Each)

-You’ve emphasized diversified investment. What’s the optimal approach?

“The U.S. and China account for 45% of global GDP. While the U.S. is performing well, China shouldn’t be excluded from investment portfolios. It’s regrettable that Korean companies withdrew from China. Relocating factories to Southeast Asia for cheaper labor yielded limited success. Meanwhile, China replaced labor with robots and boosted productivity through industrial clusters. If Korean companies had maintained their Chinese operations and improved efficiency like Chinese firms, they might have succeeded more than by relocating. China’s technological rise is formidable. India’s growth is also remarkable; its share of global market capitalization could rise to 10% (from the current 3？4%). Post-WWII, the U.S.-centric economy shifted to a bipolar system with the U.S. and China (27% and 17% of global GDP, respectively). A tripolar structure with India’s rise is likely. Few countries match South Korea’s manufacturing capabilities. From a diversification perspective, allocating 25% each to South Korea, the U.S., China, and India is advisable.”

-How do you view demands for increased shareholder returns?

“Pressuring companies to pay higher dividends isn’t the solution. Korean companies currently need capital for restructuring and growth. Large corporations struggle to raise new funds due to controversies over redundant listings. Weak shareholder return cash flow, combined with strong union demands and dividend pressure, challenges Korean firms. While the National Growth Fund could act as a savior, normalizing capital market functions is urgent.”

-Why is capital market normalization necessary?

“Capital markets thrive when long-term investments lead to corporate growth, rising stock prices, and increased dividends. However, in Korea, equity issuance is seen negatively. The world is engaged in economic warfare. For sustainable growth, Korea must continue innovative investments. A structure that facilitates easy capital raising must be established quickly.”

◇Real Estate Is Peaking; We Are Selling

-What’s your outlook for the real estate market?

“Real estate policy failure is a major driver of social inequality and polarization. I believe Korean real estate has peaked. Mirae Asset is selling properties, including the former Daewoo Securities headquarters (Mirae Asset’s Yeouido building) and the 2 trillion won Pangyo Tech One Tower. Recent apartment price increases stem from a decade of inadequate supply. The government should mass-produce rental housing. This could also address low birth rates. Seoul has underutilized land―developing areas like Jongno 2-ga, which have only 2？3 story buildings, could help. Policies like imposing a development promotion tax on landowners who hoard undeveloped land are needed. Utilizing green spaces and suburban golf courses for long-term rental apartments could also increase supply.”

-Is gold investment still promising?

“Last year, central banks’ gold investments exceeded dollar investments for the first time. This reflects dollar instability. While the U.S. is promoting stablecoin markets to protect the dollar’s status, dollar stablecoins have high success potential. Metals, minerals, and energy markets also look promising.”

◇Exceptional Support for Engineering Graduates

-What are your notable achievements over the past five years?

“Expanding unlisted asset investments to 1.5 trillion won, successful generational leadership transition at Mirae Asset, acquiring an Indian securities firm, and acquiring an Australian asset manager stand out. The stock price reflects these achievements. Mirae Asset will transcend the traditional Asian financial model to become an innovative investment company, contributing to society through finance.”

-When do you feel happy?

“When customers’ wealth grows and when I hear that Mirae Asset successors like Chairman Koo Jae-sang are succeeding.”

-What are you eyeing as the next investment?

“Recovered funds will provide 10？14 trillion won for new investments over the next four years. We’re receiving countless proposals globally. The volume of materials to review is overwhelming, but most are overpriced and rejected.”

-You operate two foundations. Any plans for a third?

“I’m considering establishing another. Ideas include a scholarship foundation for IT or bioengineering majors and a foundation to attract top global professors with high salaries. A systemic overhaul of education is needed―a system that fosters creative individuals, a culture where parents give children space for reflection, and a society that values engineering graduates. Mirae Asset plans to offer exceptional support, including 100 million won annual salaries and overseas assignments, to outstanding engineering graduates.”

-How do you manage stress?

“I walk while golfing and listen to two hours of music daily, spanning ballads, jazz, rap, and trot. I read books, observe natural changes, and strive to stay humble.”

-Advice for aspiring entrepreneurs?

“Dream big and seek original, globally oriented ideas. Opportunities abound in AI infrastructure like system semiconductors, robotics, and AI applications. Biotechnology and beauty tech are also areas where Korea can excel. Without challenge, there is no achievement. Entrepreneurship is a harsh reality―founders must work over 12 hours daily. I focused solely on work, excluding hobbies, to survive global competition.”