Korea Investment & Securities Surpasses 15 Trillion Won in Pension Asset Reserves

Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 12th that its pension asset reserves have exceeded 15 trillion won.

Korea Investment & Securities' pension asset reserves reached 15.196 trillion won at the end of last month. Retirement pension reserves amounted to 12.1012 trillion won, and individual pensions were 3.0948 trillion won. The retirement pension reserves, which surpassed 10 trillion won at the end of last year, saw an additional inflow of approximately 1.3099 trillion won over 11 months. By type, defined contribution (DC) and individual retirement pension (IRP) reserves increased by 21.6% and 34.4%, respectively, accounting for most of the growth.

With the default option (pre-designation system) being fully implemented this year and growing interest in improving pension asset returns, the proportion of investments in performance-based products through retirement pension accounts increased from 27.2% to 30.6%. In DC and IRP accounts managed directly by subscribers, the proportion invested in performance-based products such as mutual funds, ETFs, and bonds was 50.2%, higher than the proportion invested in principal-guaranteed products.

Bond trading through retirement pension accounts was also active. The over-the-counter bond direct trading service, launched in April last year for DC and IRP subscribers, recorded sales of 666.1 billion won this year.

Hong Deok-gyu, head of the Retirement Pension Division, said, "As awareness grows about the need to actively manage pension assets and plan for retirement, investments through retirement IRP account deposits are increasing," adding, "We will expand pension asset consulting functions by systematizing one-on-one matching consultations between retirement pension subscribers and the PB center."

Korea Investment & Securities is conducting various events for pension customers. Ahead of the year-end tax settlement season, department store gift certificates are being provided based on deposits into individual pension and IRP accounts. When trading ETFs and REITs through IRP, free management and asset management fees are also offered.