Shinhan Investment Corp Completes Full Set of 10 Default Option Products

Shinhan Investment Corp. announced on the 24th that it has completed the composition of 10 default option products ahead of the full implementation of the default option (pre-designated operation system) scheduled for July this year.

Following the approval of 7 products last year, Shinhan Investment Corp. obtained additional approval for 3 products last month. The Ministry of Employment and Labor approves up to 10 products per retirement pension provider. Among retirement pension providers, only two, including Shinhan Investment Corp., have received full product approval, making it the first in the banking and securities industry.

The default option is a system where, if there is no operation instruction for a product with a maturity such as a principal-guaranteed product after its maturity, the product is operated according to the one pre-designated by the customer. The system was introduced on July 12 last year, went through a grace period, and will be fully implemented from July 12 this year.

The Ministry of Employment and Labor strictly reviews default option products, which are key to the system’s establishment, through rigorous screening from basic review to final approval, considering factors such as yield, loss potential, and product characteristics (low fees).

Default option products are characterized by lower fees compared to general products and are suitable for long-term investment. From the customer’s perspective, these products are not only designated in advance for operation but can also be directly purchased, making the diverse composition of products highly meaningful.

Meanwhile, Shinhan Investment Corp.’s default option products are structured according to investment tendencies. They offer portfolios centered on time deposits, lifecycle funds (TDF·Target Date Fund), BF (Balance Fund), and default option exclusive funds, allowing customers to select products according to their diverse needs.

In particular, the three newly approved products were launched in collaboration with Shinhan Asset Management. Each product is characterized by Shinhan Asset Management operating portfolios specialized for retirement pensions, centered on default option exclusive funds (Shinhan Balance Pro Aggressive and Neutral types), with advisory support from Shinhan Investment Corp. Additionally, for responsible investment, Shinhan Investment Corp. and Shinhan Asset Management each made initial investments of 1 billion KRW and 1.2 billion KRW per fund, respectively.

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