Shinhan Financial Investment Automatically Applies 50% Discount on Retirement Pension Fees for Social Enterprises

[Asia Economy Reporter Lee Jung-yoon] Shinhan Financial Investment announced on the 6th that it will apply a 50% reduction in fees for defined benefit (DB) and defined contribution (DC) plans of social enterprises and public interest purpose workplaces without a separate application.

Since 2021, Shinhan Financial Investment has been implementing a 50% reduction in management fees and asset management fees for social enterprises, kindergartens, daycare centers, childcare services, and social welfare corporations as part of its ESG (Environmental, Social, and Governance) responsible management practice. Previously, workplaces could receive the 50% fee reduction only through an application process. Therefore, workplaces that did not apply were effectively unable to benefit from the fee reduction.

Shinhan Financial Investment improved its operations to provide broader and more practical benefits to companies from the customer's perspective. Among the workplaces eligible for the 50% reduction in management and asset management fees, social enterprises, village enterprises, daycare centers, and kindergartens that can be verified through related organizations will receive the 50% reduction benefit without a separate application. As a result, eligible workplaces will see fees reduced from the existing maximum annual rate of 0.39% to 0.195% for defined benefit plans, and from 0.45% to 0.225% annually for defined contribution plans without any separate application.

Additionally, social enterprises, daycare centers, and kindergartens that have subscribed to Shinhan Financial Investment’s retirement pension through the Korea Workers' Compensation & Welfare Service can also enjoy the automatic 50% fee reduction benefit. Workplaces not eligible for the automatic 50% fee reduction can still apply through the existing method.

Park Sung-jin, Head of the Retirement Pension Business Division at Shinhan Financial Investment, said, “We applied the 50% fee reduction benefit for defined benefit and defined contribution plans without a separate application to provide practical benefits to workplaces that could not apply due to lack of time. We will continue to strive to provide stable and practical retirement pension services for our customers’ secure retirement.”