OK Savings Bank Surpasses 2 Trillion Won in Cumulative Retirement Pension Sales

Achieved Cumulative Sales of 400 Billion KRW for DB Type...Top Industry Level
DB Type 1-Year Interest Rate 2.2% (Pre-Tax) and DC·IRP Type 1-Year Interest Rate 2.0% (Pre-Tax) Offered

[Asia Economy Reporter Kim Hyo-jin] OK Savings Bank announced on the 23rd that its retirement pension fixed deposit, launched in November 2018, has surpassed a cumulative sales amount of 2 trillion won within two years of its release.

The retirement pension fixed deposit is a fixed interest rate deposit product sold to companies and employees enrolled in retirement pensions. OK Savings Bank sells ▲Defined Benefit (DB) ▲Defined Contribution (DC) and Individual Retirement Pension (IRP) products through 28 financial institutions. The subscription amount is up to 50 million won per individual and up to 3 billion won per corporation.

In particular, the DB type has achieved a cumulative sales amount of 400 billion won, maintaining a top-tier position in the industry.

An OK Savings Bank official stated, “Unlike the DC and IRP types where individuals directly select products, in the case of the DB type, companies decide on products on behalf of employees, so companies take a very conservative approach when choosing operating institutions. Except for some savings banks affiliated with financial holding companies, it is not easy for companies to select savings bank products.”

He added, “Therefore, the fact that our product, a savings bank not affiliated with a financial holding company, has achieved a cumulative sales amount of 400 billion won is very meaningful.”

OK Savings Bank cites the success factors of its retirement pension products as ▲attractive interest rates ▲mid-term withdrawal benefits without penalties ▲and increased brand awareness.

As of this month, the interest rates for OK Savings Bank’s retirement pension fixed deposits are 2.2% (1 year, before tax) for the DB type and 2.0% (1 year, before tax) for the DC and IRP types. These rates are higher compared to the average 1% range products from first-tier financial institutions. Additionally, in cases of unavoidable mid-term withdrawal due to retirement or other customer reasons, a special mid-term withdrawal benefit guarantees the contracted interest rate.

OK Savings Bank also analyzes that the improvement in performance is contributed by increased customer awareness through company-wide social contribution activities and various sports event sponsorships conducted by OK Savings Bank and OK Financial Group.

Jung Gil-ho, CEO of OK Savings Bank, said, “The retirement pension fixed deposit is an effective means to prepare for a second life after retirement. We will continue to provide reasonable returns and differentiated services to repay the great support we have received from our customers.”