Park Hyun-joo, chairman and global strategist of Mirae Asset Group, emphasized the need for companies to prioritize capital accumulation for growth rather than increasing shareholder returns through dividends. He noted that companies like Samsung Electronics and SK Hynix have thrived by reinvesting profits instead of distributing them to shareholders.
On August 26, during an event for employees at the Four Seasons Hotel in Seoul, Park stated, "Is it true that Samsung's stock price is falling because it can't return value to shareholders? That's nonsense."
He further argued, "Shareholder returns are typically only 5-7%. In that case, it would be better to invest in U.S. Treasury bonds. If dividends had been prioritized, would Samsung Electronics and SK Hynix even exist?"
Park stressed that not paying dividends is essential for a company's improvement, advocating for bold capital accumulation to foster growth. He highlighted that enhancing shareholder value should not solely focus on returning profits but also on investing for future growth.
His comments come amid increasing calls in the domestic market for companies to expand shareholder returns. While the government is encouraging dividend increases and stock buybacks through value-up policies, Park maintains that accumulating investment resources is crucial for securing long-term competitiveness.
Regarding the potential for U.S. tariffs on South Korea, Park expressed optimism, stating, "I believe the U.S. will not impose heavy tariffs on Korea. There is no need to feel overly anxious. Without semiconductors, companies like NVIDIA and other U.S. tech giants cannot operate."
He added, "Would the U.S. impose a 50% tariff on Korea? Absolutely not," indicating that the significance of the South Korean semiconductor industry within the U.S. tech ecosystem makes it unlikely for the U.S. to impose high tariffs on Korean firms.
Park also criticized investments in real estate and virtual assets. He remarked, "The era of making money through real estate should come to an end. It must end for everyone's sake, so that younger generations can enjoy a better quality of life." He described the government's recent real estate tax policies as "not a joke" and expressed hope that the current housing issues could be resolved.
On virtual asset investments, he stated, "Very few people have made money investing in Bitcoin. Most end up in financial ruin. I don't understand why people take out loans to invest in it." He cautioned against treating stocks in the same reckless manner, asserting that all assets should not be traded in such a way.
The event was organized to celebrate the new beginning of Digital X, which Mirae Asset Group recently acquired, and to share the group's long-term vision of 'Mirae Asset 3.0.' Park, along with Oh Se-jin, CEO of Digital X, and all employees, attended the gathering.
During the event, Park outlined plans to position Digital X as a core component of 'Mirae Asset 3.0,' aiming to expand its product offerings across four pillars: crypto, stablecoins, real-world assets (RWA), and security token offerings (STO), while promoting the digitization of various physical assets such as gold, silver, and electricity.
He urged Digital X employees to possess a forward-looking perspective and to prepare for new changes, encouraging them to become creative talents who constantly seek new possibilities beyond established frameworks.
* This article has been translated by AI.
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