Korea Investment & Securities targets top spot in W1,000tr pension market

"The retirement pension market has already surpassed 600 trillion won ($442 billion), and we expect it to reach 1,000 trillion won within three years. Korea Investment & Securities currently ranks third in the retirement pension segment among securities firms, but we are preparing with the firm intention of becoming No. 1 in the pension business."

Kim Do-hyun, executive vice president and head of the individual customer group at Korea Investment & Securities, made the remarks Tuesday at a media briefing on pension MTS services and pension platform strategy held at TP Tower in Yeouido, Seoul. It was the first time the company had held a press briefing to introduce its retirement pension business to journalists.

"We feel a sense of urgency about not missing out on the pension market, and we believe there is ample room for growth," Kim said. "Through this occasion, I hope it comes across clearly that Korea Investment & Securities — a firm already strong in wealth management, investment banking, real estate project financing and short-term corporate bonds — is now making a serious move into pensions as well."

Korea Investment & Securities recently completed a full overhaul of its pension MTS service. The revamp aims to seize a leading position in the rapidly expanding pension market by offering more differentiated services.

According to the company, the average age of new defined-contribution plan enrollees has fallen from 40 in 2015 to 36 in 2025. The share of customers receiving pension payouts also surged from about 11 percent in 2015 to 85 percent in 2025. The figures reflect a structural shift in the pension market — moving beyond simple asset accumulation toward systematic asset management.

Kim outlined a strategy to leverage the firm's core strengths. "Korea Investment & Securities holds the largest financial product balance in the industry, and we are confident our private banker capabilities are second to none," he said. "We also have a very strong corporate and IB network and considerable sales expertise, so we plan to fully enter the pension business by connecting the strengths of our PB and IB operations."

Choi Jong-jin, head of the pension innovation division, said the average age of the company's defined-contribution plan members has dropped by four years in just a decade to 36. "Our attrition rate among enrolled members stands at 1.8 percent, meaning 98 out of every 100 customers continue to manage their defined-contribution assets with us," he said.

Choi added that 85 percent of retirees choose to receive their benefits through individual retirement pension accounts and annuity payouts. "Pension customers meet Korea Investment & Securities at age 36 and build their retirement assets with us for at least 30 years, until at least age 65," he said. "The time has come for a comprehensive pension platform that accompanies customers throughout their entire life cycle."

Hwang Yun-hee, team leader of the digital pension division, said pensions were once a simple financial product with no room for diversification, but their role has expanded into a comprehensive asset management vehicle holding a wide range of products. "If the early pension market — when companies managed funds conservatively in principal-guaranteed products — was the era of defined-benefit plans, today defined-contribution plans, individual retirement pensions and personal pensions, where individuals design and invest on their own, have become central," she said.

Hwang added that while stable instruments such as deposits and guaranteed investment contracts dominated the defined-benefit era, active diversification through exchange-traded funds, target-date funds and default options has made return management increasingly important in recent years.

Through the overhaul, Korea Investment & Securities built a dedicated "Pension Home" section on the app's main screen, giving it the same prominence as domestic and overseas share trading. The company also introduced a "My Total Pension Assets" screen that consolidates all accounts to display portfolio composition, returns and real-time settlement balances at a glance.

Additional features include a "practical to-do" function that analyzes account status and prompts customers to take action — such as making deposits or switching products — to prevent neglect, along with expert-based model portfolio investment tools and an AI market analysis function.

"As the market undergoes structural change, pension providers need to go beyond simply attracting new enrollees or managing returns and offer a comprehensive pension platform that spans a customer's entire life," Choi said. "Under the motto 'there is no retirement in pensions,' Korea Investment & Securities will continue to refine its personalized platform so that customers can prepare for retirement as easily and reliably as possible."