The retirement pension fund in South Korea has surpassed 500 trillion won, intensifying competition among financial investment firms to attract customers. As funds shift from traditional savings accounts to investment products like ETFs, securities companies are focusing on acquiring clients for tax-exempt accounts and retirement pensions.
According to the Financial Supervisory Service and the Ministry of Employment and Labor, the domestic retirement pension fund reached 501.4 trillion won at the end of last year, marking a 16.1% increase from the previous year. This is the first time the fund has exceeded 500 trillion won since the system was introduced in 2005, with an annual return rate of 6.47%, the highest on record.
However, this return rate remains low compared to major pension funds like the National Pension Service, which recorded a return of 19.9% during the stock market boom last year. The disparity in returns is significant based on management methods. Defined Benefit (DB) plans, which have a high proportion of principal and interest guarantees, yielded only 3.53%, while Defined Contribution (DC) plans, managed directly by participants, achieved 8.47%, and Individual Retirement Pension (IRP) plans returned 9.44%.
As retirement pensions establish themselves as long-term investment assets, interest in products like ETFs is growing. The financial investment industry is entering a competitive phase to capture asset management demand using ETFs alongside the expansion of the retirement pension market.
In line with this trend, iM Securities is launching a strategic ETF trading event for customers with tax-exempt accounts and retirement pension accounts until September 30. The event will feature 21 strategic products from major ETF brands, including Samsung Asset Management's KODEX, Mirae Asset Management's TIGER, KB Asset Management's RISE, and Korea Investment Trust Management's ACE. Notable ETFs include KODEX AI Power Core Facilities, TIGER Korea Tech Active, RISE 200, and ACE K Semiconductor TOP2+.
iM Securities will offer benefits to customers who apply for automatic investment in the targeted ETFs through their ISA and retirement savings accounts and complete their first purchase. The first 1,600 customers who meet the conditions of a minimum purchase amount of 100,000 won and an investment period of over one year will receive a 10,000 won mobile cultural gift certificate.
Additional benefits will be available based on the net purchase amount of strategic ETFs. An event related to the default option for retirement pensions will also be held, where customers who newly designate or change default options that include products from Samsung Asset Management, Mirae Asset Management, and Korea Investment Trust Management will receive coffee coupons on a first-come, first-served basis.
An iM Securities representative stated, “We have organized this event to promote a long-term ETF investment culture utilizing tax-exempt accounts and retirement pension accounts.”
* This article has been translated by AI.
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