KB Kookmin Bank Achieves No.1 Bank Sector Default Option Return Rate in Retirement Pension

KB Kookmin Bank's retirement pension default option (pre-designated management system) product recorded the highest annual return rate among banks.

KB Kookmin Bank announced on the 22nd that it achieved this result in the Ministry of Employment and Labor's '2024 Q1 Default Option Major Status Disclosure.' KB Kookmin Bank also ranked first among banks in the 6-month return rate.

The ‘retirement pension default option’ is a service where, if subscribers do not give separate product management instructions for their retirement pension reserves, the reserves are automatically managed with a pre-selected product. It was officially implemented in July last year, and as of the end of March 2024, 41 retirement pension providers have received approval from the Ministry of Employment and Labor to sell 309 default option products.

KB Kookmin Bank’s ‘High-Risk Portfolio 1’ recorded the highest annual return rate of 22.85% among all default option products in the banking sector. The annual return rates of ‘Medium-Risk Portfolio 1’ and ‘Low-Risk Portfolio 2’ were also 14.26% and 9.78%, respectively, ranking first among medium-risk and low-risk products in the banking sector.

In the 6-month return rate as well, KB Kookmin Bank achieved the highest return rates in each product category among banks, with ‘High-Risk Portfolio 2’ recording 17.06%, followed by ‘Medium-Risk Portfolio 1’ and ‘Low-Risk Portfolio 2’ with 11.75% and 7.78%, respectively.

KB Kookmin Bank designed the default option high-risk portfolio mainly with currency-exposed funds and the low-risk portfolio, which has a high proportion of safe assets, mainly with currency-hedged funds, based on the tendency for the won-dollar exchange rate to rise when the global stock market falls.

A KB Kookmin Bank official said, “We will continue to expand various pension products and services to help customers successfully prepare for their retirement.”