Securities Firms Launch Year-End Tax Settlement Product Campaigns... Retirement Pension and IRP Subscription Events Flood Market

[Asia Economy Reporter Park Jihwan] Securities firms are actively promoting subscription events for retirement pension products that offer tax benefits related to year-end tax settlements. Typically, from November onwards, demand from customers seeking year-end tax benefits concentrates on retirement pension-related products. Securities firms are competing to attract customers by offering not only fee waivers for Individual Retirement Pensions (IRP) but also various gift certificate benefits.

According to the financial investment industry on the 13th, most major securities firms are currently conducting subscription events for retirement pensions and individual IRPs. The individual IRP is a representative tax-saving pension product for retirement preparation. Anyone with income can subscribe. Combining pension savings and IRP, a tax credit of 16.5% is provided up to an annual limit of 7 million KRW. This translates to a maximum tax credit benefit of 1,155,000 KRW. Since the benefit is based on the total amount paid over one year, investors can make a lump-sum payment by the end of the year and still receive the tax credit.

Securities firms are focusing on attracting customer interest by offering free fees for non-face-to-face IRP accounts along with various prize giveaways. Shinhan Financial Investment has been running the event "Tax Benefits and Retirement Preparation at Once: Personal Pension & IRP" since the 3rd. This event, held until the 31st of next month, is divided into three parts. First, customers who newly subscribe to personal pension or IRP and deposit more than 3 million KRW will receive a Starbucks coffee gifticon on a first-come, first-served basis. Existing customers who purchase financial products worth more than 3 million KRW will also be entered into a draw to receive Starbucks coffee gifticons. Lastly, both new and existing customers who transfer or deposit more than 10 million KRW from other companies will receive Shinsegae mobile gift certificates worth up to 30,000 KRW depending on their assets. Since May, Shinhan Financial Investment has waived all IRP fees (management and asset management fees) for mobile transactions.

Samsung Securities is running an event from the 1st of this month until the end of next month, offering up to 130,000 KRW in benefits for deposits or transfers into pension savings or IRP accounts. Benefits are provided based on cumulative amounts during the period. Deposits or transfers of 3 million KRW or more qualify for the maximum benefit of 130,000 KRW.

Hanwha Investment & Securities and Korea Investment & Securities have also been conducting events since the end of last month, offering department store gift certificates and other rewards based on payment amounts to pension savings and individual retirement pension (IRP) customers. Hanwha Investment & Securities offers Baskin Robbins gifticons (pint size) to customers who newly open pension savings accounts by December 31 and set up automatic transfers of 250,000 KRW monthly for over a year or pay more than 3 million KRW. Customers who make net deposits of over 10 million KRW into pension savings receive department store gift certificates worth up to 200,000 KRW based on the net deposit amount. For IRP accounts, customers who newly open accounts and set up automatic transfers of 250,000 KRW monthly for over a year or pay more than 3 million KRW will be entered into a draw to win prizes such as LG Tromm dryers and Samsung Electronics Air Dressers. All customers who do not win will receive a Starbucks Americano.

Korea Investment & Securities offers Starbucks coffee coupons to Bankis customers who newly open IRP or personal pension accounts and deposit more than 500,000 KRW by the 12th of next month. Additionally, mobile gift certificates worth up to 30,000 KRW each are given based on the net deposit amounts in IRP and personal pension accounts.

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