Kiwoom Securities is preparing to enter South Korea’s retirement pension business, with market watchers saying its large base of individual investors could help it build a stronger presence in the pension market. Attention is also focused on whether a new player could accelerate a so-called “money move” — a shift of retirement pension assets toward securities firms — in a market that has grown to about 500 trillion won.
According to the financial investment industry on Wednesday, Kiwoom completed registration with the Financial Services Commission earlier this month as a retirement pension provider and is preparing to launch services in June. The firm is building systems and refining its product lineup ahead of a full market entry.
Kiwoom has also reorganized internally, forming a pension business team of about 30 people within its wealth management division. The team is led by Managing Director Pyo Young-dae, a retirement pension specialist who worked more than 15 years at Mirae Asset Securities and has led preparations since a task force was created in 2024.
Kiwoom’s goal is to break into the top five by market share. As of the end of the first quarter, retirement pension assets at securities firms were led by Mirae Asset Securities with 42.4411 trillion won, followed by Samsung Securities (23.2681 trillion won), Korea Investment & Securities (22.5945 trillion won), Hyundai Motor Securities (18.8552 trillion won), NH Investment & Securities (10.7541 trillion won) and KB Securities (8.8981 trillion won). Reaching the top five would require securing at least 10 trillion won in assets.
The market widely cites Kiwoom’s retail strength as its biggest advantage. The firm has held the No. 1 retail market share for 21 consecutive years and is seen as competitive in digital platforms centered on its mobile trading system. Analysts also say cost efficiency and pricing competitiveness through non-face-to-face channels could help it attract customers early.
But the firm also faces clear constraints. The retirement pension market still relies heavily on corporate contracts and in-person sales. With a limited offline sales network, Kiwoom could be at a disadvantage versus larger rivals in defined benefit (DB) and defined contribution (DC) plans.
Taking that structure into account, Kiwoom plans to focus first on individual retirement pensions, or IRPs. The strategy is to quickly expand contact with individual customers through IRPs, then gradually broaden into DC and DB offerings while building an integrated pension solution.
Its product approach also emphasizes online distribution. Kiwoom plans to offer online-only products at low cost to reduce fee burdens and strengthen a structure that allows customers to select and manage products on its platform. It also aims to build an integrated wealth management platform linking retirement pensions with pension savings and individual savings accounts, or ISAs, providing services across the life cycle from contributions and management to withdrawals.
Some in the market expect Kiwoom’s entry to speed up the shift of assets from banks to securities firms. According to the Financial Supervisory Service’s Integrated Pension Portal, total retirement pension assets stood at 501.4 trillion won at the end of last year, up 16.1% from 431.7 trillion won a year earlier. Over the same period, the securities industry’s share rose to 26.5% from 24.3%, while banks’ share edged down to 52.4% from 52.9%.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.