South Korea’s Mirae Asset Capital, the parent company and largest shareholder of Mirae Asset Daewoo, agreed to buy its brokerage unit’s stocks for 40 billion won ($33.8 million), officials said Thursday.

According to DART -- the Financial Supervisory Service’s electronic disclosure board -- Mirae Asset Capital decided to purchase some 570 common shares of Mirae Asset Daewoo during the local stock trading sessions.

The financial consulting and corporate financing company will increase its stake to nearly 21.1 percent -- 0.8 percentage point higher than now. It will buy the common stocks by May 12.

Prior to the recent decision, Mirae Asset Capital purchased Mirae Asset Daewoo’s common stocks on two occasions -- 20 billion won worth in 2018 and 50 billion won last year.

“The decision to buy more of (the company’s) stocks is to strengthen the largest shareholder’s ownership. Despite (the company’s strong business fundamentals), Mirae Asset Daewoo’s stock price is currently undervalued, so increasing the brokerage unit’s stake will also boost value for shareholders,” said an official at Mirae Asset.

Meanwhile, Mirae Asset Daewoo’s stock closed at 7,000 won -- down 20 won, or 0.28 percent, from the previous session.

By Jie Ye-eun (yeeun@heraldcorp.com)