50 Asset Management Firms' Retirement Pension Funds Surpass 25 Trillion Won

Slight Growth with 764.1 Billion KRW Increase Since Early Year
Mirae Asset Records Industry-Leading 28% Market Share

[Asia Economy Reporter Park So-yeon] This year, the total assets under management of retirement pension funds by 50 domestic asset management companies barely surpassed 25 trillion won. Although trillion-won scale growth was expected annually, the retirement pension funds saw only slight growth as the stock market retreated throughout the year.

According to the Korea Financial Investment Association on the 30th, the total assets under management of retirement pension funds by 50 domestic asset management companies increased by 764.1 billion won (3.1%) from the beginning of the year to 25.3116 trillion won (as of December 20).

By asset management company, Mirae Asset Global Investments recorded the highest with 7.0864 trillion won, an increase of 518.8 billion won from the beginning of the year (market share 28%). Samsung Asset Management ranked second with 3.0217 trillion won (11.94%), up 122.6 billion won from the start of the year. KB Asset Management was third with 2.9752 trillion won (11.75%), an increase of 172.5 billion won. Korea Investment Management ranked fourth with 2.3718 trillion won (9.4%), up 46.6 billion won. Shinhan Asset Management was fifth with 960.6 billion won (3.8%), an increase of 59.6 billion won.

In this year’s high interest rate environment, the stock market struggled, causing large sums to flow out of retirement pension funds. The decline in retirement pension fund returns led to a decrease in assets under management. Among the 50 asset management companies, the largest outflow occurred at Woori Asset Management, which saw a decrease of 209.6 billion won from the beginning of the year, managing 577 billion won (2.3%), ranking ninth in the industry by retirement pension fund assets under management.

Industry insiders analyze that the increase in general investors following the COVID-19 pandemic and the implementation of the default option this year, which heightened interest in retirement pensions more than ever, also influenced the decrease in retirement pension fund assets under management. However, experts advise against withdrawing funds from retirement pension funds simply because current returns are low. Kim Sang-hoon, Executive Director of the Asset Allocation Strategy Department at KB Securities Research Center, said, "In the past, when real estate prices were soaring, it became a trend to withdraw retirement pension fund money to invest in real estate, but current returns are not high." He added, "For funds managed over the medium to long term, it is recommended to use products with balanced asset allocation rather than trying to time the market."

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