Korea Investment & Securities noted on the 15th that its retirement pension reserves have surpassed 16 trillion won. This marks an increase of 1 trillion won in just two months.
As of the end of 2024, Korea Investment & Securities' retirement pension reserves stood at 15.8184 trillion won, a 22% increase from 12.9601 trillion won at the end of 2023. The reserves managed directly by retirement pension holders under the defined contribution (DC) plan and individual retirement pension (IRP) plan grew by 30% and 60%, respectively, driving the growth. Since 2020, the average annual growth rate of retirement pensions at Korea Investment & Securities has been around 23%.
According to the Ministry of Employment and Labor's report on the main status of the retirement pension default option (pre-designated management method) for the third quarter of 2024, the Korea Investment & Securities Default Option High-Risk BF1 achieved a one-year revenue rate of 26.56%, attaining the highest revenue in the securities industry for the third consecutive quarter this year. Korea Investment & Securities offers a variety of investment products and portfolios, including around 800 ETFs, and supports an ETF automatic investment service that allows users to automatically purchase their desired ETFs every month.
It also led the transition of retirement pensions to a non-face-to-face system. Last year, it established a digital pension division and expanded partnerships for IRP account openings with large financial platforms like Kakao Bank. As a result, the reserves for non-face-to-face opened IRP accounts are expected to double in 2024, accounting for 45% of the total inflow. This year, it is on track to provide a robo-advisor (RA) discretionary service dedicated to retirement pensions. At the end of last year, it was designated as an innovative financial pilot business operator for this purpose, planning to offer various investment options to investors through strategic partnerships with both its own RA and external specialized RA firms.
Kim Soon-sil, head of the retirement pension management department at Korea Investment & Securities, said, "We will continue to lead the market with differentiated customer service and competitive products."