KB Sonhae Boheom Applies for Collective Investment Securities Brokerage License from Financial Authorities
Purpose of Selling Financial Products to Retirement Pension Customers
[Asia Economy Reporter Ki Ha-young] KB Insurance has applied to the financial authorities for approval to conduct collective investment securities brokerage business.
According to the industry on the 10th, KB Insurance submitted an application to the Financial Services Commission on the 6th for approval to engage in financial investment business. This brokerage business involves buying and selling financial investment products with investors' consent, and the products handled are collective investment securities such as funds. It is reported that KB Insurance applied for financial investment business approval to sell financial products to retirement pension customers.
If approved by the financial authorities in the future, it is expected that growth through customer acquisition in the expanding retirement pension market will be possible. According to the Financial Supervisory Service's Integrated Pension Portal, KB Insurance's retirement pension reserves in the second quarter of this year amounted to 2.8483 trillion KRW, an increase of 4.4% (119.1 billion KRW) compared to the same period last year.
The retirement pension market is showing growth. According to the Financial Supervisory Service's Integrated Pension Portal, as of the second quarter of this year, the total amount of retirement pension reserves managed by 43 financial companies was 260.3689 trillion KRW, an increase of 16.8% (37.3458 trillion KRW) compared to the second quarter of last year (223.0231 trillion KRW).
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However, in the insurance industry, growth is sluggish compared to other sectors such as financial investment and banking. This trend is particularly noticeable in the rapidly growing Individual Retirement Pension (IRP) market. As of the first half of this year, bank IRP reserves increased by 36.1% year-on-year to 27.7946 trillion KRW, and securities companies saw a 62.9% increase to 10.1516 trillion KRW, but insurance companies' reserves only rose by 9.1% to 3.0908 trillion KRW. Amid a stock market boom and aggressive marketing by securities firms causing a large outflow of retirement pension subscribers to securities companies, there are calls for insurance companies to strengthen their related efforts as well.
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