OK Savings Bank Achieves 1 Trillion KRW in Retirement Pension Balance

[Asia Economy Reporter Minyoung Kim] OK Savings Bank announced on the 28th that it has achieved a retirement pension balance of 1 trillion KRW. This is another achievement just two months after surpassing 1 trillion KRW in new sales as of December last year.

Since launching its retirement pension products in November 2018, OK Savings Bank currently provides defined benefit (DB), defined contribution (DC), and individual retirement pension (IRP) fixed interest time deposit products to 28 financial institutions including banks, securities firms, and insurance companies. The subscription amount is up to 50 million KRW for individuals and up to 3 billion KRW for corporations, with interest rates of 1.9% per annum (pre-tax) for DC and IRP, and 2.2% per annum (pre-tax) for DB. A notable feature is that the agreed interest rate is guaranteed even in cases of early termination due to unavoidable reasons such as retirement.

In particular, the DB-type retirement pension balance of OK Savings Bank has attracted attention by recording 300 billion KRW, the highest among savings banks. Since DB-type products are decided by companies rather than employees, companies tend to choose financial institutions from a more conservative perspective, and OK Savings Bank is evaluated as being more trusted by companies compared to other savings banks.

Jung Gil-ho, CEO of OK Savings Bank, said, “We formed a business preparation team six months before the launch and carefully prepared from the product design stage with retirement pension operators and general corporate retirement pension managers. Perhaps thanks to these efforts, satisfaction with the product is high regardless of industry, from private companies to public enterprises.” He added, “Through specialized services such as special early termination and broad social participation activities like volunteer work and sports event hosting, social trust in OK Savings Bank seems to have been built, receiving favorable reviews.”

CEO Jung also added, “Since retirement pensions are funds to prepare for customers’ second life after retirement, we will continue to satisfy subscribers with reasonable returns and differentiated services.”