Korea Workers' Compensation and Welfare Service Adds Mirae Asset and Kyobo Life as Retirement Pension Asset Management Institutions

[Asia Economy Reporter Kim Bo-kyung] The Korea Workers' Compensation and Welfare Service announced on the 29th that it has additionally selected Mirae Asset Daewoo Securities and Kyobo Life Insurance as retirement pension asset management institutions and will commence operations from the 1st of next month.

Employers who have introduced the retirement pension system entrust the operation of management and asset management tasks to retirement pension operators. The Korea Workers' Compensation and Welfare Service performs retirement pension management tasks for small businesses with fewer than 30 employees, and asset management tasks are currently carried out by three institutions?Woori Bank, Samsung Fire & Marine Insurance, and Shinhan Financial Investment Securities?that have agreements with the Service. Two more asset management institutions will be added to induce autonomous competition among retirement pension operators.

Mirae Asset Daewoo Securities was the operator that achieved the highest returns last year in defined contribution (DC) and individual retirement pension (IRP) plans. It is an institution with strengths in excellent performance dividend products specialized for retirement pensions, such as Target Dated Funds (TDF).

Kyobo Life Insurance has been reducing retirement pension asset management fees for small and micro enterprises with fewer than 30 employees since May, alleviating the financial burden on employers. It is also the retirement pension operator with the best financial soundness among insurance companies.

Additionally, the Service designates products specialized for retirement pensions as representative products to recommend them preferentially to subscribers in order to increase returns. It plans to add Mirae Asset Global Investments' excellent performance dividend products (TDF 2025, TDF 2045, TIF) as representative products and operate them accordingly.

The newly designated investment products as representative products have significantly lowered sales commissions, which is expected to help improve the actual returns for retirement pension subscribers.

Kang Soon-hee, Director of the Service, stated, "Through the additional selection of asset management institutions and representative products, subscribers' choices will be expanded, and it is expected to help improve returns by inducing autonomous competition among operators."

This content was produced with the assistance of AI translation services.