Shinhan Financial Investment Expands Eligibility for 50% Reduction in Retirement Pension Fees

[Asia Economy Reporter Minji Lee] Shinhan Financial Investment announced on the 8th that it will reduce the fees for defined benefit (DB) and defined contribution (DC) retirement pensions for public interest corporations and others by half to practice ESG responsible management.

Shinhan Financial Investment decided to expand the 50% reduction benefit on management fees and asset management fees, which was previously applied to social enterprises and small and strong companies, to public interest corporations such as social economy enterprises, kindergartens, daycare centers, childcare services, and social welfare corporations.

The businesses eligible for fee reduction are mainly workplaces with 50 or fewer employees and small-scale businesses. According to statistics, only 25.6% of workplaces with fewer than 50 employees have introduced retirement pensions. This is significantly lower compared to workplaces with 300 or more employees, where over 90% have introduced such pensions, indicating insufficient measures for workers' stable retirement security.

For businesses included in the fee reduction target, the DB type fee will be reduced from the existing maximum annual rate of 0.39% to 0.195%, and the DC type fee will be reduced from the existing 0.45% to 0.225%. Workplaces that have subscribed to retirement pensions through the Korea Workers' Compensation and Welfare Service (management institution) and Shinhan Financial Investment (asset management institution) can also enjoy this fee reduction benefit.

Shinhan Financial Investment expects that by reducing corporate retirement pension fees by 50%, it will lower the entry barrier to the retirement pension system, reduce the burden on businesses, and help ensure workers' stable retirement security.

Park Sungjin, Head of the Retirement Pension Business Division at Shinhan Financial Investment, said, “We are expanding the 50% reduction target for DB and DC type fees (management/asset management) to reduce the actual burden on small businesses and help workers prepare for a stable retirement. We will continue to strive to provide diverse and continuous retirement pension services for customers' stable retirement security.”

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