Korea Investment & Securities has stepped up its efforts to capture the pension market worth 600 trillion won. The company plans to provide a new comprehensive pension platform tailored to changes in the pension market and regulations, with the goal of achieving the top position in the market.
On the 6th, Korea Investment & Securities held the "Korea Investment & Securities Pension MTS (Mobile Trading System) Briefing" at Yeouido TP Tower, Yisaadang-daero, Yeongdeungpo-gu, Seoul, and disclosed its pension business strategy among other matters.
Kim Do-hyun, head of the Retail Customer Group at Korea Investment & Securities, said, "Korea Investment & Securities currently ranks 10th among corporate retirement pension operators and third among securities firms." He added, "We are preparing with the determination to definitely become number one in the pension business someday, by restructuring our pension organization and recruiting talent."
To capture the pension market, Korea Investment & Securities plans to provide a new comprehensive pension platform. This decision stems from the judgment that a platform aligned with these changes is necessary, as the age limit for new Defined Contribution (DC) plan participants has been lowered from 40 in 2015 to 36 last year, and cases of individuals directly managing their pensions using Exchange-Traded Funds (ETFs) are increasing.
Choi Jong-jin, Yeon Geum-hyeok-sin (Head) of Korea Investment & Securities, explained, "Pension customers manage and grow their assets with Korea Investment & Securities' pension services for at least 30 years." He continued, "It is time to have a comprehensive pension platform that accompanies the customer's life cycle spanning up to 30 years. The first step in this comprehensive pension platform is the MTS overhaul."
Korea Investment & Securities has consolidated previously scattered pension accounts and pension investment information into a "Pension Home" tab at the top of the MTS interface. Through the "My Total Pension Assets" feature, users can grasp their held pension accounts, such as DC and Individual Retirement Pensions (IRPs), at a glance and view them by product or account. Additionally, the system informs investors of necessary actions, such as contributions, investments, and rebalancing, tailored to each individual after account opening.
Hwang Yun-hee, team leader of the Digital Pension Division at Korea Investment & Securities, stated, "We are not simply adding MTS functions; we are trying to change the very standard for viewing pension services to be customer-centric." She added, "Our goal is to enable customers to manage their pensions directly, and we will continue to pursue this direction in future overhauls."
Korea Investment & Securities analyzed that pensions have transformed from a single financial product into a comprehensive asset management tool containing various products. The variety of investable products, such as ETFs, has increased, and tax benefits have also grown. Consequently, the area requiring direct management by investors has expanded. Accordingly, Korea Investment & Securities plans to continue launching pension services with the goal of a comprehensive pension platform that accompanies the life cycle from accumulation to operation and receipt.
Alongside this, the company plans to deploy various strategies to capture the pension market, including talent recruitment and leveraging the know-how of Private Bankers (PBs) and Investment Banking (IB). It intends to provide PB-style intensive asset management consulting for individual customers and link specialized solutions from the IB and corporate sales divisions for corporate customers.
Group Head Kim said, "Korea Investment & Securities has the highest PB capabilities in the industry, as it holds the largest balance of financial products, and is traditionally strong in IB." He added, "We will fully launch our pension business by leveraging the strengths of both PB and IB."
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