[DigitalToday reporter Sangyeop Oh (오상엽)] Mirae Asset Securities and Toss Securities are reviewing acquisitions of Japanese brokerages as they accelerate overseas expansion. The move is seen as a strategy to buy firms with local licences and sales networks to gain a quick foothold in Japan rather than entering by setting up new entities.

On Aug. 27, the financial investment industry said Mirae Asset Securities and Toss Securities are each reviewing the feasibility of acquiring 3 to 4 Japanese brokerages.

The two companies are known to be working to identify suitable targets, analysing business viability, acquisition prices and potential synergy after a deal.

The backdrop is seen as a view that Japan’s capital markets are entering a structural growth phase, widening interest from global funds and prompting retail money to move into capital markets.

In particular, it can take considerable time to secure a new securities business licence in Japan. Buying an existing brokerage has the advantage of securing a local sales network and customer base at the same time.

Mirae Asset Securities is seen as able to leverage its capabilities in wealth management (WM) and exchange-traded funds (ETF), while Toss Securities is seen as able to use its competitiveness in mobile platforms.

Mirae Asset Securities is also pushing to acquire a U.S. online brokerage as it moves to expand its global investment platform beyond Japan. A medium- to long-term goal is also to build a service that allows trading of U.S. stocks and ETFs, U.S. Treasuries and digital assets on a single platform.

In Japan and Australia, it has also laid groundwork for market entry by moving ahead with steps such as setting up local entities for on-the-ground operations.

On the matter, a Toss Securities official said it was "difficult to confirm."