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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Shinhan Bank has, for the first time, surpassed Samsung Life Insurance to become the largest player in South Korea’s retirement pension market.
According to data from the Financial Supervisory Service and industry sources on April 14, Shinhan Bank’s retirement pension assets under management reached KRW 54.74 trillion as of the end of March, exceeding Samsung Life’s KRW 53.48 trillion.
This marks the first shift in market leadership since the retirement pension system was introduced in December 2005.
Shinhan Bank’s rise reflects a broader “money move” trend, where retirement assets are increasingly shifting from insurance companies to banks and securities firms. These institutions have been attracting customers by emphasizing the importance of retirement asset management and tax benefits, particularly through defined contribution (DC) plans and individual retirement pension (IRP) products, where individuals make investment decisions.
In contrast, insurance companies have traditionally focused on defined benefit (DB) plans, which guarantee a predetermined payout, but are now losing ground as investors seek greater control and flexibility over their retirement assets.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
