Samsung Life to waive all IRP fees from Saturday, a first in the insurance industry

Samsung Life announced Friday that it will waive all account management and asset management fees on individual retirement pension (IRP) accounts starting Saturday.

The measure applies to all IRP holders regardless of when they enrolled, whether they use in-person or online channels, or how much they have accumulated. A full, unconditional fee waiver of this kind is a first in the insurance industry. Until now, IRP fee waivers had been a marketing tool used primarily by securities firms to attract customers.

As stock markets have rallied recently, defined contribution and IRP plans — in which members choose and manage their own investments — have consistently expanded their share of the retirement pension market. The trend has made service quality increasingly important, with members paying closer attention not only to returns but also to product selection, professional advice and transaction convenience.

To coincide with the fee waiver, Samsung Life will run promotions for customers who open new IRP accounts or transfer existing ones from other financial institutions. Customers who open a new IRP account and contribute at least 10,000 won ($7) will receive 10,000 won worth of Monymoney points. Those who contribute between 1 million won and less than 10 million won will receive an additional 10,000 won in Monymoney points, while those who contribute 10 million won or more will receive an additional 20,000 won. The promotions apply to both in-person and online channels and cover accounts opened or transferred on or after Saturday.

The move is widely seen as an effort to expand Samsung Life's retirement pension business beyond its defined benefit plan-heavy portfolio into IRP, with the aim of reclaiming the top spot in the retirement pension market. Samsung Life held the No. 1 position in retirement pension assets for 20 years before losing it for the first time in the first quarter of this year. Its investment performance, however, remains strong — the insurer ranked first among the top 10 providers by assets in one-year returns on both principal-guaranteed and non-guaranteed IRP products as of the end of the second quarter this year.

"As DC and IRP plans account for a growing share of the market, the real value that members experience throughout the entire process — from product selection and investment advice to returns and costs — has become more important than ever," a Samsung Life official said. "We will reduce the fee burden and strengthen our professional asset management services to help customers prepare for a stable retirement."