Annualized Return Reaches 7.46% in the First Half of the Year
The Small and Medium Enterprise Retirement Pension Fund (Pureun Seed), a fund-type retirement pension system targeting small businesses with fewer than 30 employees, has surpassed a cumulative return of 20% less than three years after its introduction.
A scene from the meeting of workplaces enrolled in the Small and Medium Enterprise Retirement Pension Fund (Pureun Seed) held last February at the Seoul Joint Government Building of the Korea Workers' Compensation and Welfare Service in Yeongdeungpo-gu, Seoul
On the 21st, the Korea Workers' Compensation and Welfare Service announced that the cumulative return of Pureun Seed had exceeded 20%. Pureun Seed is a system introduced in September 2022 to help small and medium-sized enterprises manage retirement pensions more easily. The system is characterized by pooling employer contributions to create a joint fund, with the Korea Workers' Compensation and Welfare Service taking responsibility for asset management.
The Service explained that the high cumulative return was achieved as a result of the Fund Management Committee, composed of experts from various fields including the government, labor and management organizations, and academia, establishing annual asset management plans and selecting dedicated management institutions to improve returns. In the first half of this year, the annualized return reached 7.46%, surpassing last year's 6.52%.
By asset class, the cumulative returns were 46.17% for overseas equities, 29.57% for domestic equities, 15.91% for domestic bonds, and 3.84% for overseas bonds. The Service stated that it achieved balanced performance across most asset classes by flexibly responding to market changes through strategies such as global diversification.
Going forward, the Service plans to establish itself as a hub for developing expertise in retirement pensions and advancing long-term systems and research related to retirement pensions. It also aims to strengthen research and survey functions related to retirement pensions and build networks with retirement pension providers and related experts to accumulate policy support capabilities.
Park Jonggil, President of the Korea Workers' Compensation and Welfare Service, said, "We will continue to manage assets transparently and efficiently so that more small and medium-sized enterprises can benefit from the high returns of Pureun Seed." To focus on the development of Pureun Seed, the Service established a Retirement Pension Bureau through an organizational restructuring in May.
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