IBK Industrial Bank Expands Retirement Pension Fee Reduction Program

Establishment of Tax Reduction System for SMEs and Small Business Owners and Expansion of Tax Reduction Targets for Startup Companies

IBK Industrial Bank announced on the 3rd that it has expanded and restructured its retirement pension fee reduction system to alleviate financial costs for small and medium-sized enterprises (SMEs) and to help SME workers secure stable retirement funds.

Through this system reform, a fee reduction system for SMEs, small business owners, and strong small enterprises has been newly established, and the fee reduction criteria for social enterprises, startup companies, and individual IRPs have been expanded.

IBK Industrial Bank offers a 5% fee reduction to SMEs that have received a 'Small and Medium Enterprise Confirmation Certificate' from the Ministry of SMEs and Startups. Additionally, for the first time in the banking sector, a fee reduction system has been introduced for small business owners and strong small enterprises. Small business owners who have received a 'Small Business Owner Confirmation Certificate' from the Ministry of SMEs and Startups will receive a 100% fee reduction in the first year of enrollment, 70% in the second year, and 30% in the third year. Strong small enterprises that have received a 'Strong Small Enterprise Confirmation Certificate' or a 'Youth-Friendly Strong Small Enterprise Selection Certificate' from the Ministry of Employment and Labor will receive a 50% fee reduction in the first year, 30% in the second year, and 20% in the third year.

Social enterprises will continue to receive a 50% fee reduction; however, if the reduced fee rate is higher than the minimum fee rate for each retirement pension system, the minimum fee rate will be applied. The fee reduction for startup companies has been expanded from companies within 3 years of establishment to those within 7 years of establishment.

Furthermore, IBK Industrial Bank offers a fee reduction of up to 0.05 percentage points (P) for customers who have subscribed to an individual IRP if the default option operation loss does not reach the benchmark (the one-year average return of retirement pension funds). Also, customers who subscribe to an individual IRP at a branch will receive a 50% reduction in operation management fees upon pension receipt. Customers who subscribe to an individual IRP through non-face-to-face channels will continue to receive a full fee exemption.

An IBK Industrial Bank official stated, “We expect this fee system reform to provide practical support by reducing the financial burden on SMEs and their workers,” and added, “We will continue to strive to establish various retirement pension support systems.”