Hanhwa Investment & Securities Begins Off-Market Bond Trading for Retirement Pensions

[Asia Economy Reporter Junho Hwang] Korea Investment & Securities, a subsidiary of Korea Financial Group, will provide an over-the-counter (OTC) bond direct trading service to defined benefit (DB) retirement pension subscribers starting from the 28th.

Accordingly, Korea Investment & Securities DB-type retirement pension subscribers can directly invest in bonds through operation instructions. As of June, the interest rates on high-quality bonds traded OTC, such as AA-rated or higher bank CoCo bonds and insurance company subordinated bonds, are in the 3% range. Considering that this exceeds the interest rates of typical DB-type principal-guaranteed retirement pension products by 1 to 2 percentage points, it is expected to contribute to improving DB-type returns, which have been mainly fixed on principal-guaranteed products.

Park Jong-gil, head of the Retirement Pension Division, said, "Through high-quality bonds with various remaining maturities and the potential to provide higher interest income, we will be able to broaden the range of investment options for retirement pension assets," adding, "We plan to contribute to the stable profit generation of retirement pension customer assets and provide better consulting services."

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