Good morning, everyone. Thank you for your participation in the Mirae Asset Securities earnings release conference call. The agenda for today, we will have a presentation by Mirae Asset Securities, followed by a Q&A session with your participation. For people who have questions, please press star one on your phone. From now on, we will start the Q1 2026 earnings release presentation by Mirae Asset Securities.
Yes, thank you very much for joining us. This is Dong Ho Shin , Head of the ESG & IR team at Mirae Asset Securities. Thank you very much for joining us at our earnings call for the first quarter, 2026. Joining us today is our CFO, Mr. Kang Hyuk Lee, who is also Head of Business Innovation Division. Please be advised that simultaneous interpretation in English is being provided for our international investors.
Today's call will proceed in the following order: a status update on Mirae Asset Securities key strategies for the first quarter, a review of overall performance and business results by segment, followed by a Q&A. The presentation materials for the first quarter 2026 are available on our company's corporate website at securities.miraeasset.com under the Regular Reports menu. A recording and transcript of today's call will also be posted on our corporate website. Please note that today's presentation contains forward-looking statements based on information available as of the time of preparation. Actual business results may differ due to changes in business environment or strategy. We will now begin with the remarks from our CFO. Please refer to page two of the presentation materials.
Yes, good morning. This is Kang Hyuk Lee, the CFO and Head of Management Innovation. Thank you for joining us at our 2026 first quarter earnings call. First, I will walk you through our key results for the first quarter. Please refer to page three of the presentation. In the first quarter 2026, our consolidated pre-tax income was KRW 1,357.6 billion, and net income was KRW 1,001.9 billion. Both increased by 229% and 228% year-over-year, and 77% and 74% Q-on-Q, reaching an all-time high. As of the end of the first quarter, consolidated shareholder equity was KRW 14.1 trillion, and annualized ROE was 29%. In Q1 2026, across brokerage, WM, overseas subsidiaries, and fair value gains from principal investments, we delivered results exceeding the previous quarter's record high levels. Our overseas subsidiaries recorded annualized ROE of 14% on a post-tax basis, achieving their highest-ever performance. Fair value gains from our principal investment portfolio amounted to approximately KRW 804 billion.
Please refer to page four for a summary of our performance results. Before we proceed further, I would like to add one clarification regarding our revenue structure. Securities industry is structurally different from manufacturing and other industries in terms of how gain and losses from investment assets are reflected in our financial results. While equity method gains and certain investment items are classified under non-operating income according to accounting standards, in substance, they represent recurring income, reflecting our core capabilities. Accordingly, we believe it is more appropriate to evaluate our fundamental performance based on pre-tax income and net income rather than operating income alone. In particular, given our global business exposure and high mix of investment assets, consolidated earnings provide a more accurate view of our performance than standalone financials. Let me move on.
Regarding the recent rise in our share prices, we do understand that some view it as a short-term rally. However, this reflects a conventional interpretation of the domestic securities industry end playbook, while failing to fully capture the structural nature of our business model. A deeper understanding of our differentiated structure will suggest that the current valuation is a reasonable reflection of our future growth potential while providing indication of significant upside given our growth trajectory. Our differentiated strategy is built on four pillars. First, our wealth management and pension business, which are highly competitive and difficult to replicate within a short period, which has seen accelerated growth among the ongoing money move trends. Second, our overseas business, which already accounts for a meaningful share of earnings, has been gaining added momentum, making us the only financial institution in Korea with a significant overseas revenue mix.
Third, our balanced portfolio of investments in innovative companies across both domestic and global markets has become a stable earning space while also delivering standout successes such as our investment in SpaceX. Fourth, our global WM business strategy, which we continue to advance by building out our global investment platform, spanning emerging markets such as India, Vietnam, and Indonesia, as well as developed markets such as Hong Kong and the U.S. We will now briefly walk you through these differentiated capabilities during our call, which will be followed by more detailed business segment results for the first quarter of 2026. First, in the first quarter, amid continued money move trends from last year, let's look at our WM and pension business. We saw a clear acceleration of inflows into our platform, building on the momentum of last year.
Mirae Asset Securities has built a stable earnings structure centered on WM and pension, and this differentiated earnings base, combined with continued growth momentum, is expected to further strengthen our competitiveness. Growth in client assets translates directly into margin expansion and serves as a key driver of income growth. Total client assets, including domestic and overseas, increased from KRW 602 trillion at the end of 2025 to KRW 660 trillion at the end of the first quarter, and currently stands at KRW 776 trillion. This represents an increase of KRW 174 trillion compared to year-end. This increase exceeds both the full year 2025 increase of KRW 120 trillion and the cumulative increase over the 2023-2024 period of approximately KRW 113 trillion. Over the past three years, total client assets, domestic and overseas combined, have grown at an average annual rate of roughly 18%.
As a result, profitability is expected to increase in line with asset growth. While fees vary by asset class, we currently generate stable fee income at an average rate of approximately 60 basis points. If this growth trend continues, we expect WM and pension net operating revenue to increase to KRW 4.25 trillion at the start of next year, an increase of approximately KRW 0.6 trillion year-over-year, before reaching approximately KRW 8.2 trillion by 2030. This will serve as a stable foundation supporting the lower bound of our earnings going forward. Pension assets also continued steady growth. As of the end of last year, pension assets stood at KRW 64.3 trillion, an increase of KRW 6.5 trillion from KRW 57.8 trillion at the end of last year. This represents approximately 43% of last year's full year increase. At present, pension assets now exceed KRW 74 trillion.
The increase in the first quarter alone already represents approximately half of our annual net inflow target. In particular, DC and IRP combined balance reached KRW 36.8 trillion as of the end of the first quarter, ranking number one across the entire financial industry in terms of total accumulated assets. Second, our overseas subsidiaries are seeing continued accelerating growth as we continue our strategy of supporting the development of the domestic capital market while expanding the contribution of overseas earnings. In Q1 2026, overseas subsidiaries recorded pre-tax income of KRW 242.2 billion. This represents the highest quarterly performance in history. ROE based on net income post-tax reached 14%. Emerging markets WM assets in India, Vietnam, and Indonesia reached KRW 79 trillion at the end of the first quarter, with both assets and profitability showing steady growth.
In developed markets such as New York and Hong Kong, diversified business lines and investment asset performance continue to strengthen our earnings base. Notably, Hong Kong recorded pre-tax income of KRW 81.3 billion, already approaching its full year level of KRW 86.3 billion achieved in 2025. New York also achieved KRW 83 billion in the first quarter alone, representing approximately 40% of last year's record high annual performance. Furthermore, our Hong Kong subsidiary has obtained a digital asset retail license, and we're preparing to launch the first global MTS by a Korean securities firm later in June. We aim to expand touchpoints with global retail clients and expand our WM strategy, currently centered on emerging markets, to key markets, including Hong Kong. Going forward, we plan to progressively evolve into an integrated digital wealth management platform spanning crypto assets, Korean equities, and tokenized investments.
Third, our globally diversified investment portfolio of innovative companies. After repositioning our portfolio toward innovative companies across both domestic and global markets, our portfolio is now more balanced than before. Last year, we reflected approximately KRW 602 billion in fair value gains on PI investments. In the first quarter alone this year, we recorded approximately KRW 804 billion in valuation gains. The gains are largely driven by substantial returns from SpaceX-related investments, and we're expecting additional upside upon IPO planned sometime around the end of the second quarter. We continue to deploy capital into new innovative sectors, including both listed and unlisted equities. Notably, gains from listed equities are mark to market and therefore not included in the aforementioned PI valuation gains of KRW 804 billion.
Despite market volatility, including sharp declines in March, driven by geopolitical tensions related to Iran, we generated approximately KRW 105 billion in gains from investments in Korean memory , the U.S. semiconductor value chain, and China AI-related companies. We secured cornerstone investment opportunities in Hong Kong-listed companies such as MiniMax from late last year, recording KRW 155.8 billion in investment gains in the first quarter. These cornerstone opportunities are the result of our long-standing global network built through the Mirae Asset Group's expansion efforts. We'll continue to institutionalize and enhance these capabilities to deliver and generate further meaningful outcomes. Lastly, I'd like to comment on our global investment platform and discuss our strategy to build a global platform covering both traditional and digital assets.
We are steadily pursuing a strategy that goes beyond the traditional Morgan Stanley style, or WM model, expanding toward a fully integrated global investment platform that also incorporates digital asset capabilities similar to platforms like Robinhood. As of the end of first quarter, Robinhood reported total assets of approximately $45.5 billion, which is around KRW 65 trillion, and net income of $350 million or KRW 510 billion, both lower than our own. However, it is currently valued at a market capitalization of roughly KRW 100 trillion, with a PBR of around 7.45 x, significantly higher than our valuation of KRW 44 trillion based on common equity and a PBR of around 3x . While there are inherent limitations in directly comparing the two companies, given the differences in our business structures and geographic scope, Mirae Asset Securities is currently still largely perceived as a traditional brokerage firm.
As our global investment platform business gains further traction and the market begins to recognize our evolution into a fintech and platform-based company, this may be viewed as an indication of meaningful upside in valuation relative to current levels. As a first concrete milestone of this transformation, we plan to sequentially launch a global MTS, starting with Hong Kong in June 2026, marking the beginning of our transition into a comprehensive global investment platform, aiming to deliver both earnings growth and further valuation re-rating momentum going forward. We are also currently pursuing the acquisition of a U.S. brokerage firm, and we will provide further updates once the process becomes more firm. The U.S. retail wealth management market, AUM, is approximately $59 trillion, which is quite significant. Even a 1% share of this immense market would represent a scale of about $590 billion, or KRW 855 trillion.
While entering the U.S. WM market through such an acquisition of a brokerage firm is a challenging path, even a modest success in such a large market would be highly meaningful relative to the domestic market. Given the ongoing shift toward digital assets and online trading as predominant channel of choice, we view this as a difficult but not infeasible opportunity. Amid growing expectations that the recent implementation of the omnibus foreign investor account system will accelerate inbound global brokerage business and create foreign capital inflows into the Korean equity market, the development of our Hong Kong MTS and potential acquisition of a U.S. brokerage firm are expected to play a meaningful role in securing new revenue streams. If realized, they will strengthen our differentiated competitive position.
In January 2024, the group established Wealth Spot, which is a dedicated AI-driven financial services company by selecting highly specialized talent within the group. Wealth Spot is accelerating the development of AI-based investment products and robo advisory services. We expect this initiative to generate significant synergies not only in AI-enabled wealth management services in Korea, but also in building our global investment platform. Next, allow me to cover the detailed earnings results by business division. Let me begin with brokerage earnings. Please refer to page five of the earnings release presentation. Brokerage fee revenue, driven by higher equity trading volume, increased 38% QoQ to KRW 459.4 billion, renewing an all-time high. Domestic equity brokerage fee increased 72% QoQ to KRW 340.8 billion, while overseas equity brokerage fee decreased 11% QoQ to KRW 118.6 billion.
The average fee rate for domestic equities recorded 2.9 basis points, unchanged from the previous quarter, while the fee rate for overseas equities increased 2.2 basis points QoQ to 14.9 basis points. In Q1, average daily trading value in the domestic equity market increased 80.7% QoQ to KRW 66.7 trillion, supported by increased inflows of retail investors, recording the highest level in the history of the Korean stock market. In particular, trading value on NXT increased significantly by 120.6% QoQ to KRW 22.8 trillion. Total equity custody assets, including domestics and overseas equities, recorded KRW 357.6 trillion. Of this, overseas equity assets decreased 9% QoQ to KRW 47.5 trillion, while domestic equity assets increased 22% QoQ to KRW 310.1 trillion.
Margin loan balance recorded KRW 6.9 trillion, remaining at similar level QoQ. Margin loan net revenue included under interest P&L in our earnings report decreased 1% QoQ to KRW 91.2 billion. Recently, the global financial market has entered a transition period in which traditional assets and digital assets are converging. In 2026, by sequentially revamping the key services of our MTS m.Stock, we plan to upgrade the competitiveness of our digital platform to make the transition to m.Stock 3.0. While existing digital platforms focused on securing customer touchpoints and trading convenience, moving forward, in order to respond to market changes such as extended trading hours, shortened settlement cycles, and the introduction of new digital assets, the entire process, from customer acquisition to investment and trading, wealth management and product sales can be supported within a single platform to further evolve.
As a starting point for expanding into integrated wealth management system, we are renewing our asset inquiry service, MY Assets, to better seamlessly connect and advance customers' traditional financial assets and digital assets. In the case of tokenized securities, in order to fully commence the business in line with the institutional schedule, we are simultaneously strengthening internal capabilities and external partnership activities for preparation. In addition, by renewing our AI chatbot to strengthen overall business support, including function and personalized responses, we plan to reduce the time and effort customers spend using m.Stock.
To view market trends and personalized stock information at a glance, we also plan to newly provide AI and database investment information and content through the m.Stock 3.0 UI. Our m.Stock, for four consecutive months from last December through this March, ranked first in monthly active users, MAU, maintaining one of the highest levels of customer engagement among domestic securities firms' MTS platforms. Based on stable platform operations and traffic management capabilities, digital transformation and the strengthening of wealth management-centered services resulted in actual increases in customer inflows and usage.
m.Stock will continue to be positioned as a key pillar driving our future business growth. Next, let me discuss WM earnings. Please refer to page six of the presentation. In Q1, fee revenue from financial product sales increased 70% QoQ to KRW 112.5 billion, continuing record earnings momentum. In particular, fee income related to the sales of wrap accounts, collective investment securities, and retirement pensions accounted for 41%, 29%, and 23% respectively of total WM earnings respectively, recording all-time highs. Financial product client assets recorded KRW 224 trillion, increasing 6% QoQ. Total client assets, combining financial product client assets and equity custody assets, increased 12% QoQ, or KRW 63.6 trillion -KRW 581.7 trillion, renewing an all-time high.
The scale of total client assets serves as the key foundation driving stable and recurring earnings generation. Under the management principle of client returns first, we are focusing on generating client performance while continuously strengthening our mid to long-term earnings base alongside sustained asset growth. The WM business is evolving into a wealth management platform based on AI and big data. To enable clients to access professional-level wealth management services anytime and anywhere, we operate a dedicated organization combining data-driven digital wealth management and PB services. Centered on digital PB services, we are also strengthening non-face-to-face and online client service capabilities. Key domestic and overseas investment information provided through AI will expand the target scope from existing equity holders to ETF investors as well.
As of the end of March, pension assets recorded KRW 64.3 trillion and, as of current date, have surpassed KRW 74 trillion, continuing strong growth momentum. Based on combined DC and IRP balances, we ranked first across the entire financial industry. Next, let me explain the earnings results for trading and financial income. Please refer to page seven of the presentation. Trading and other financial income, based on a separate basis, includes gains and losses generated from traditional trading activities such as equities, bonds, derivatives, as well as SMT and standalone PI. In addition to direct earnings generated through proprietary trading, this category also reflects foreign exchange gain and losses and the IB side valuation and disposal gains and losses on assets. Total trading and financial income recorded KRW 405 billion, increasing 83% QoQ.
This includes distribution and dividend income of KRW 111.5 billion and trading income and others of KRW 293.5 billion. Bonds balance recorded KRW 42.3 trillion, increasing KRW 2.7 trillion QoQ. In March, as inflation risks expanded due to geopolitical risks, domestic and overseas bond yields rose sharply. Accordingly, we increased hedging on bond holding positions and operated conservatively, but earnings did not reach the level we had expected for Q1. Going forward, amid an environment of continued high uncertainty and volatility, in order to ensure stable earnings management, we plan to maintain a conservative operating strategy. In Q1, we actively responded to increased ETF trading volume and heightened market volatility while expanding domestic and overseas swap counterparties and LP coverage. In addition, including seeding for new listed Global X ETFs in Hong Kong and Hong Kong IPO arbitrage straight trading, we identify revenue sources leveraging the group's network.
We continue to advance ETF LP and trading algorithms based on overseas networks in Hong Kong, India, and other regions. We are expanding IPO and derivative sales opportunities. In June, the launch of the digital asset platform at our Hong Kong subsidiary is planned, and we are exploring related business opportunities while upgrading organizational structures and systems in preparation for extended trading hours in parallel. Next, let me discuss the fair valuation results of major consolidated PI assets in Q1, resulting from the completion of the merger of an innovative company in which we have previously invested. We reflected roughly around KRW 840 billion of increased enterprise value. However, combining other investment assets subject to fair value evaluation, we recognized losses, which result in total gains of, and this is not included in the number that we mentioned before.
However, as mentioned earlier, our PI investments in innovative companies also include a substantial manner of listed equity for conference, and they are not included in the fair value. We have recorded a profit of innovative companies and memory companies and semiconductors of KRW 105 billion and investment profits of MiniMax and Hong Kong-listed companies of KRW 155 billion. Let me explain IB earnings. Please refer to page eight. IB fee revenue recorded KRW 26 billion, decreasing 39% QoQ and geopolitical risk triggered rises in commodity prices and wider heightened uncertainties became more widespread, resulting in a decreased QoQ. In corporate finance to cost of listings, exercise of warrants for listed equities, we underwrote it, and IB lead and management mandates for corporate bond issuance were the revenue highlights. In the case of IPOs, we are targeting four KOSDAQ listings within Q2.
In the real estate PF market, while short-term liquidity concerns have eased compared to the past as a significant portion of distressed assets been resolved, we believe structural risks remain. In Q1, due to decline of supply of new high-quality projects, deal sourcing opportunities were somewhat limited, and we are maintaining a cautious stand. Corporate loan revenue, which is included in interest P&L in our earnings report, recorded KRW 27.2 billion, decreasing 2.3% QoQ. The venture capital regulatory ratio set by supervisory authorities for this year is 10%, and we preemptively achieved 16.4% within Q1. Going forward, while continuing to take a leading role in providing venture capital based on the sales capability of our IB division, including deal sourcing, we plan to identify and utilize as many business opportunities as possible into venture capital provision. Next, let me discuss the earnings results for our overseas subsidiaries.
Please refer to page nine of the presentation. Overseas subsidiaries recorded pre-tax income of KRW 243.2 billion, increasing 22% QoQ, achieving another record earnings high result. Overseas subsidiaries accounted for approximately 18% of total consolidated pre-tax income. In Q1, ROE, based on net income of overseas subsidiaries, recorded 14%, achieving a double-digit ROE for the first time ever. While investment asset performance reflected in certain subsidiaries within advanced region, the advanced market center flow trading business, which we have focused over the past several years, also showed solid growth momentum, further strengthening the recurring earnings base. In Q1, approximately 65% of total assets were recorded KRW 157 billion valuation gain on investment assets of total overseas subsidiaries' pre-tax income. The contribution of pre-tax income by major region was composed by U.S. at 34%, Hong Kong 33%, India 10%, Vietnam 5%, and others at 18%.
Centered on flow trading and PI investment, advanced markets such as the U.S., Hong Kong, and Europe accounted for 79% of pre-tax income, while emerging markets centered on brokerage and wealth management account for 21%. In Q1, there were meaningful achievements centered on the expansion of our global trading platform infrastructure. Global Trading X, established to expand the flow trading business in the U.S., obtained a broker-dealer license, strengthening its business foundation. In addition, GTX UK and GTX EU in the United Kingdom recorded earnings during Q1, exceeding their full year pre-tax income from the previous year. As mentioned earlier, in Hong Kong, we are preparing to launch a global MTS in June as well, the first Korean securities firm to do so, and we will gradually advance the establishment of integrated digital wealth management platform.
Lastly, regarding capital policy and shareholder return, we currently are reviewing multiple aspects regarding the shareholder return policy to be applied for the three-year period beginning 2027, as well as plans for treasury share cancellation following the amendments to the Commercial Act, and we will communicate transparently with the market once specific plans are finalized. This concludes Mirae Asset Securities' 2026 Q1 earnings release conference call.
Now we will start the Q&A. For people with questions, please press star one on your phone. If you want to cancel, please press star and two. Yes, the first question will be by Mr. Doosan Baek from Korea Investment & Securities. Please go ahead.
Yes, this is Doosan Baek from KIS. I thank you for the good performance, and have two questions. First of all, regarding your investment assets. Starting from last year, you continue to see quite positive returns and yields. Earlier you mentioned SpaceX considering the upcoming IPO, on a full year basis, how much earnings do you expect from those investments? Also, diversification of your portfolio, also reinvestment of the proceeds upon exit. How much earnings or gains you expect from this kind of virtuous cycle?
Also, the return profile, also the earnings side, and what kind of investment strategy you have. Regarding the integrate MTS, you said that you're going to open services in Hong Kong in June. Through MTS, the investors can access not only Korean stocks but other digital assets as well. In comparison with your competitors like IBKR, how do you believe that you can be competitive and differentiated versus the peers?
Okay, thank you for the two questions. First, in terms of investment assets, let me cover that one first. In terms of this question, before I answer, I think we need to clarify what we mean exactly by investment assets, because actually we may need to redefine what we mean exactly. Let me explain briefly the terminology, before answering your question. In the past, funds were our investment asset of choice. They were not included on our standalone financials. Some of these assets were on our consolidated financials only. That's why we categorized them under the investment asset category. These were mostly assets measured at fair value, including real estate or alternative investments. Four years ago or so, starting 2022, our investment assets, rather than real estate property, shifted more to innovative business companies. Among innovative companies, there are unlisted companies and also listed businesses as well.
For investments into unlisted entities, similar to real estate investments, they were mostly in the form of funds, they are included under fair value assets. Nowadays, we have quite a lot of listed innovative business companies as well. We think that marketable investment assets should also be included in the scope. When we say investment assets, they should also be included in the scope as well. Now, in the first quarter, we recognized about KRW 804 billion in fair value gains in the first quarter, including the innovative business investments. Cornerstone investment in Hong Kong for listed companies, we did start from the end of last year. Just in the first quarter alone, we saw about KRW 156 billion in performance from those investments.
In terms of the innovative business investments, you talked about our expectations in terms of valuation. The biggest portion, of course, is SpaceX. For SpaceX, according to the media reports, we're talking about $1.75 trillion market cap. If we assume, well, some are even talking about $2 trillion. For us, it's hard to estimate exactly, but if it does succeed with the IPO at $1.75 trillion around the end of June-ish, which is our expectation at the moment, we think maybe we will see about KRW 1 .3 tr illion in additional earnings from the IPO. In terms of investment assets, you asked about our target returns. Well, the returns that we are aiming to achieve for real estate, we do go in mostly with that kind of hurdle in mind.
As far as our investments with the innovative companies are concerned, it's not that we approach with a target return in mind. Given the changes in the world, we try to anticipate what will happen, try to find the best fit in terms of what company we invest in. We look at companies with expected upside in terms of growth in the mid- to long-term. That is how we select our investments. For risk management, we do try to diversify our portfolio, that is our basic approach or strategy. More on strategy, by country, U.S. and China are our main exposures. We do also look at India as well. By sector, we are most interested in AI, semiconductor, aerospace. These are industries with structural growth drivers, we have been expanding our allocations mostly for these sectors.
One thing I do want to emphasize, we did comment on it before, for Mirae Asset Group, for 20 years now with asset management at the center, we have really built up a significant global network and now have established a long-standing track record, which is now returning a virtuous cycle. We're reinforcing the virtuous cycle with good investment returns, leading to even better investments. Our overseas local network is also delivering even added synergy as well. Regarding the second question, regarding the omnibus accounts for foreign nationals, you asked about our strategy with respect to synergy benefits. First, for the omnibus account scheme, let me cover this first. In our view, with this scheme, I think the biggest change will be improved accessibility for persons outside of Korea, the foreign nationals. They will have much better access to Korean investments.
In the past, if an international investor wanted to invest in Korean stock, they had to open a securities account from one of the local securities companies in Korea, go through KYC. Now they will be able to do this very conveniently through their local brokerage firm in Hong Kong. They can use the local platform and local account that they are used to for easy access into Korean stocks. It will lower the entry threshold or barrier in terms of investing into Korean stocks. Samsung Electronics and SK hynix, these are memory semiconductor plays that are drawing more attention given the AI boom. Actually, semiconductor, shipbuilding, national defense, military defense, aerospace, these are very strong sectors in Korea. We are one of only a few countries with many competitive industries, very competitive across the value chains of multiple sectors.
From a foreigner's point of view, I think this kind of improvement to the institutional systems will increase the appeal of the Korean market. Given the limited access to the Chinese market, I think it only adds to the appeal. Foreign investors' investments into Korean equity markets, I think the inflow, again, can be a big opportunity and a big boost to the business of Korean securities companies. The Hong Kong MTS launch, again, planned for June. We're almost at the final wrap-up stage in terms of acquisition of the security firm in the U.S., these will really combine to give us a strong differentiation versus other competitors. We will move on to the next question.
The next question will be from DAOL Investment & Securities, Ji-Won Kim. Please ask your question.
Thank you very much for the opportunity to ask a question. I would like to ask about some of the comments made before. There was a lot covered. In terms of guidance for earnings and gains related moving forward, I would like to have a more specific breakdown of the investment portfolio assets for listed and unlisted companies, the breakdown. AI, semiconductors, such innovative growth industries were mentioned as your focus. Other than that, what would be the industry breakdown? Please share to the extent that you can.
Yes, thank you for the question. If in the market, I think there are a lot of curiosity over our investment asset portfolio, and we've been receiving a lot of questions under this light. In the past, after the acquisition of various securities, we would say our investment dry power was relatively limited. Unavoidably, in the early 2000s and late 2010s, there was a boom in overseas real estate. As a result, within our portfolio, real estate accounted for a high portion. For a certain number of years, until 2023, we definitely recorded a negative on our P&L as a result. As of now, we have expanded our equity capital base also have significant turnaround in our earnings, and we have much more capacity for investment as of now, our global network has been expanded.
With this strengthened network, we have better accessibility for investment opportunities to multiple blue-chip companies. As of now, largely looking at the innovative company-related assets, it's around KRW 6 trillion. Alternative assets, including real estate, infrastructure, physical assets, account for about KRW 2 trillion, IB and other sales-related positions account for about KRW 4 trillion. In terms of listed and unlisted companies, out of the innovative companies that I just mentioned, SpaceX, in terms of our investment size, domestic and overseas together, is around KRW 800 billion. With significant valuation gain, currently stands at book around KRW 3.3 trillion.
It accounts for a significant portion, but based on the investment size alone in the initial phase, SpaceX-related, we are subject to an NDA, this is applicable for most unlisted companies, it's difficult to open everything. For the listed companies on a valuation basis, about KRW 600 billion is recognized. For the unlisted companies, if you do the calculation, out of the KRW 5 trillion corporate investments, it's over KRW 4 trillion SpaceX valuation gain KRW 3.3 trillion is accounted for in that number. Semiconductors and other U.S., China-driven AI drive that we're seeing. As a result, we are having a balanced and diversified portfolio. Please understand that I am limited for providing more details at this point in time. Thank you. We'll move on to the next question.
The next question will be from [Hang Seng Securities], [Hyun Soo Kim]. Please ask your question.
Yes, hello. This is [Hyun Soo Kim]. Thank you for the opportunity to ask a question. I do have one other question. It might be a follow-up to the previous questions and answers provided. Other than SpaceX, are there any additional expected valuation gains from overseas equity investments?
Yes. As I mentioned before, for the listed stock, we have a diverse investment portfolio. Out of the innovative companies we've made investments so far, SpaceX, this is a merger between three companies, xAI, SpaceX. We've actually made investments into them separately, and now they merged into one. As of now, it looks like there was a significant investment into one company, but realistically, it was separate investments into three that were merged into one.
I think corporate investment at SpaceX obviously accounts for a significant portion, but we are still diversified. In terms of valuation gains, obviously, that will come from unlisted companies. There has been some press release on our investment into Perplexity. This is accounting for a considerable size in comparison. Perplexity also, my understanding is at the current juncture, there are no IPO plans within the year, so there might be actually not much valuation gain to be recognized. The valuation gain or loss from such stocks, we do expect that there will be considerable gains. Equity investment and non-listed stock valuation gain or loss, at this point in time, it's difficult to speculate exactly how much that size will be for this year. Thank you.
Okay. Due to the time constraint, we will now conclude the Mirae Asset Securities 2026 Q1 earnings call. Thank you for your interest and participation. Should you have any further inquiries, please feel free to reach out to the Mirae Asset Securities ESG and IR team. Thank you very much.