Korea’s securities industry has been sliding downhill with most domestic brokerage houses seeing their commission income declining as customers turned risk-averse amid the global financial turbulence.

While a number of securities companies have been inevitably shutting down some of their retail operations and downsizing staff to stave off further downturns, Mirae Asset Securities, one of Korea’s leading brokers, aims to stand out and win customers with its latest investment products.

Mirae Asset said its wrap accounts, which invest in a pool of underlying equities, will help investors manage and hedge risks as they mainly invest in consumer stocks.

It does not invest in just any company focusing on those in commonly known consumer-driven sectors such as beverages, food or retail. The accounts build a portfolio through investments in listed companies with global power brands immune to cyclical market fluctuations, Mirae Asset said.

Companies such as Google, Amazon, BMW, Nike and Estee Lauder in the U.S. and Europe are ideal investments under the company’s wrap accounts.

Its investment products seek to invest in a pool of 15 to 20 such companies that are not only competitive on their home turf, but are also expanding into emerging markets where purchasing power is increasing.

The key to sustaining investment with stable returns through the wrap accounts is risk management, it reiterated.

Another investor benefit is reduced tax payments, as indirect investments through such products allow tax exemptions for those who earned returns of up to 2.5 million won ($2,200) in a year.

Investors who earned more than that are subjected to a 22-percent capital gains tax, and a comprehensive income tax of up to 41.8 percent if their investment income exceeds 20 million won.

Mirae Asset Securities said its wrap accounts were able to help its investors gain returns of about 20 percent on average since early this year.

By Park Hyong-ki (hkp@heraldcorp.com)