[2021 Capital Investment Award] Samsung Securities Launches 'Direct IRP' with Full Waiver of Account Fees

WM Division Grand Prize Samsung Securities

[Asia Economy Reporter Park Jihwan] Samsung Securities, which won the Best Asset Management (WM) Award at the 2021 Asia Capital Investment Awards, has launched 'Samsung Securities Direct IRP,' the first in Korea to fully waive fees imposed on Individual Retirement Pension (IRP) accounts. Notably, Samsung Securities' Direct IRP completely exempts two types of fees charged on both the retirement funds paid by the company where the subscriber worked and the additional personal contributions made by the individual.

Since its launch on April 19, 56,884 customers opened new IRP accounts by September. The removal of management fees and asset management fees previously imposed on IRP accounts is analyzed as a key factor attracting customers. Among them, 51,369 customers opened accounts through Direct IRP, exceeding 90% of the total. Moreover, more than half of the new account holders were in their 30s and 40s. Until now, IRP was strongly perceived as a product for middle-aged and older people nearing retirement. However, among new Samsung Securities Direct IRP subscribers, those in their 40s accounted for the largest share at 32.4%, followed by those in their 30s at 29.2%.

Excellent management performance also played a significant role in attracting consumer interest. According to the Financial Supervisory Service, as of the second quarter of this year, Samsung Securities' IRP average management return rate recorded 10.13%.

Another advantage is the variety of products available for investment through IRP. IRP accounts can invest not only in principal-guaranteed products such as deposits and interest-type insurance but also in exchange-traded funds (ETF), performance dividend insurance, exchange-traded notes (ETN), real estate investment trusts (REITs), and wrap accounts. An analysis of the investment assets of Samsung Securities Direct IRP subscribers, excluding simple deposits such as savings bank fixed deposits, showed investments with 44.1% in equity-type ETFs and 19.8% in fund-of-funds.