It has been reported that 2.4 trillion won in accumulated funds has been moved just three months after the start of the transfer service for retirement pensions. In particular, the funds that have flowed from banks to securities firms in pursuit of high returns alone amount to 400 billion won, indicating that competition among retirement pension operators is expected to become increasingly intense.
According to the Ministry of Employment and Labor and the Financial Supervisory Service on the 23rd, a total of 2.4 trillion won (about 39,000 cases) in accumulated funds were transferred through the retirement pension transfer service over the three months from the end of October last year to the end of last month. Of this, approximately 75%, or 1.8 trillion won, was transferred without selling the products operated in the account.
The transfer means that retirement pension members move funds to another operator's account without selling the products they have been managing in their accounts. Members can minimize the selling expenses of existing products or losses in the repurchase process by using the transfer service.
Looking at the transfer status by sector, the amounts were counted as follows: bank to bank (798.9 billion won), bank to securities (649.1 billion won), and securities to securities (411.3 billion won). Based on the net inflow amount, securities firms recorded a net increase of 405.1 billion won, while funds in bank accounts saw a net outflow of 461.1 billion won. However, since the banking industry still holds the dominant position in the retirement pension market, it is analyzed that transfers between banks accounted for the largest share.
By system, the transfers were as follows: Retirement Pension (IRP) 922.9 billion won, Defined Benefit (DB) 871.8 billion won, and Defined Contribution (DC) 611.1 billion won, showing the most active movement in IRP. For IRP and DC, 375.3 billion won and 215.5 billion won were net inflows to securities firms respectively, while 76.8 billion won and 105 billion won were transferred to banks and insurance companies in the DB.
The Ministry of Employment and Labor and the Financial Supervisory Service plan to establish a pre-check service by the first half of the year that allows members to check the transferability of products held in their accounts before applying for the transfer. The transfer of products from DC accounts to IRP accounts will also be permitted.