Gwangju Bank Surpasses 1 Trillion Won in Retirement Pension Fund Balance

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Bank (President Song Jong-wook) announced on the 29th that the balance of retirement pension reserves surpassed 1 trillion won on the 25th.

The reserve amounts by system were 382 billion won for Defined Benefit (DB), 545.4 billion won for Defined Contribution (DC, including corporate IRP), and 73.3 billion won for Individual Retirement Pension (IRP).

This marks 15 years since the retirement pension service began in December 2005 to secure retirement income for workers belonging to workplaces in the region, solidifying its position as a leader in the retirement pension market.

In particular, the cumulative balance, which was 627.7 billion won at the end of June 2017, has increased by more than 370 billion won over the past three years, showing rapid growth. Despite a decrease in reserves due to increased retirement payments and business suspensions caused by corporate restructuring amid the impact of COVID-19, the growth trend continues.

Among Gwangju Bank’s retirement pension products, the principal-guaranteed product yields recorded 1.60% (5th place) for DB type, 1.85% (5th place) for DC type, and 1.43% (6th place) for individual IRP, based on the Bank Federation’s disclosure standards (Q1 2020, banking sector). This contributed to achieving the milestone of surpassing 1 trillion won in reserves.

Going forward, Gwangju Bank plans to further activate its retirement pension business by continuously investing in retirement pension management, promoting non-face-to-face transactions, reforming the fee system, and enhancing customer returns.

Kim Ho-jun, head of the Trust Pension Department at Gwangju Bank, said, “The breakthrough of 1 trillion won in Gwangju Bank’s retirement pension was possible thanks to the trust and support of our customers. We will continue to make multifaceted efforts such as system improvements and fee discounts to manage retirement pension assets and improve yields, dedicating ourselves to being a life partner who plans the second chapter of our customers’ lives after retirement.”