Korea Investment & Securities Surpasses 1 Trillion KRW in Retirement Pension IRP Contributions

[Asia Economy Reporter Hwang Junho] Korea Investment & Securities has entered the 1 trillion KRW milestone for Individual Retirement Pension (IRP) reserves as of the 12th.

The IRP reserves at Korea Investment & Securities have grown at an average annual rate of 37% from 2013 through the end of last year. This year, 229 billion KRW has flowed in as of the end of last month, representing a 30.1% increase compared to the beginning of the year. This is also the highest IRP reserve growth rate among large operators with retirement pension reserves exceeding 1 trillion KRW.

Korea Investment & Securities analyzed that this result is due to a combination of factors including the inflow and transfer of IRP funds to securities firms driven by a strong stock market, Korea Investment & Securities’ trading convenience and fee benefits, high IRP yield performance, and a diverse product lineup. As of the end of February, there are 363 exchange-traded funds (ETFs) and listed REITs available for trading in Korea Investment & Securities’ IRP, the largest number within the industry.

Park Jong-gil, Head of the Retirement Pension Division, said, "Recently, more customers are joining or transferring to securities firms’ IRP accounts due to higher pension yields and convenience," adding, "We will continuously support customers’ retirement preparation by offering various products and improving yields."

Korea Investment & Securities is conducting the "Korea Investment IRP, Try it with TDF this Spring" event until the end of June, providing mobile cultural gift certificates to customers who purchase target date funds (TDF) from each asset management company with net increases in IRP accounts.