Kiwoom Securities launched its retirement pension business on June 1 with an online platform strategy centered on worker choice in DC plans. Pyo Young-dae, Head of the company's Pension Platform Division, stated in an interview with BizWatch that the approach challenges the traditional employer-selection model, arguing that since DC plan funds belong to workers who manage them until retirement, workers should have the authority to choose their service providers. South Korea's retirement pension market has surpassed 500 trillion won in reserves, with incumbent providers having built their businesses primarily through offline branch networks and face-to-face sales.
Pyo emphasized that "DC is a structure where the company deposits contributions into the worker's account, after which the worker manages it directly and later receives it as retirement benefits. Since the owner of this money is essentially the worker, it makes sense that the worker should also have the authority to choose the service provider." He added that the DC market should transition from a model where providers visit corporations for sales to one where providers offer good tools, products, and services to win worker selection.
Kiwoom Securities set a goal to achieve 10% market share within the securities industry within 10 years, despite being a latecomer to the retirement pension market. The company aims to leverage its existing investment customer base and online platform competitiveness to differentiate itself from traditional providers.
Kiwoom Securities Integrates Hero Gate Platform for Real-Time Pension ETF Trading
Kiwoom Securities applied its mobile trading system (MTS) 'Hero Gate' directly to retirement pension accounts, allowing customers to trade retirement pension ETFs in real time using the same interface as regular stock trading. Pyo stated that customers can handle all procedures from account opening to asset transfer and product management conveniently through Hero Gate.
The company launched a 'retirement pension adoption request' feature that allows workers to request their employers add Kiwoom Securities as a pension provider. After the company adopts Kiwoom Securities as a provider, workers can directly complete the DC enrollment process through the app. Pyo confirmed that "corporate representatives and worker applications are continuing, and there are cases where contracts have been concluded."
Regional Companies Adopt Worker Request Feature for Pension Provider Selection
The online approach has drawn responses particularly from regional companies. Pyo explained that "these are places that would have been difficult to visit if we had only done offline sales, but when we opened it online, applications from regional companies continued." He credited the effectiveness of allowing HR managers to directly handle tasks such as subscriber registration through telephone, email, and an online administrative web portal.
Customer feedback highlighted the convenience of the non-face-to-face model as the primary satisfaction factor. Pyo stated that customers appreciated being able to use the familiar investment environment of Hero Gate from their existing stock accounts in the same way for retirement pension accounts. He added that the company will collect customer opinions to improve UI/UX and create a more convenient pension investment environment.
Kiwoom Securities Plans AI Portfolio Advisory and Foreign Currency Bond Launch
Kiwoom Securities began promoting its retirement pension service in earnest through TV, radio, outdoor advertising, and digital channels starting in July. The company will launch an AI portfolio advisory service for retirement pensions. An AI algorithm developed in-house by Kiwoom Securities will construct portfolios with global funds of varying risk levels—including stocks, bonds, and alternative assets—according to market conditions.
Pyo stated that the service "periodically adjusts asset allocation to manage the portfolio and pursues long-term performance," adding that "we expect it to be a long-term investment alternative for customers who have difficulty managing retirement pension assets on their own."
The company will sequentially release foreign currency products. Following the foreign currency repurchase agreement (RP) launched with the business opening, Kiwoom Securities is coordinating final schedules to launch foreign currency bonds this month. The company plans to initially provide U.S. Treasury bonds that meet eligible credit rating standards.
Pyo Young-dae Sets Conservative 2026 Target, Maintains 2035 Market Share Goal
Pyo stated that this year's business direction focuses on stabilization rather than reserve expansion. He said, "This year is a year to build the initial foundation of the business. We are focusing on securing a stable customer base and creating a service that customers can trust in the long term, rather than short-term performance."
He clarified internal targets, stating: "When we entered the retirement pension market earlier, I said we were thinking of a target reserve of within 500 billion won for this year, but there seems to have been a misunderstanding as if the goal was 500 billion won. We have an internal reserve target, but it is a much smaller number than 500 billion won."
The long-term goal remains unchanged. Pyo emphasized that "unless there is an unexpected major change in the retirement pension market, our goal of growing to a top 5 provider with a 10% securities industry market share by 2035 remains unchanged. We will strengthen our individual investor base, digital platform competitiveness, and ETF-centered investment capabilities to grow into the most trusted 'investing pension' platform for customers."
FAQ
What did Kiwoom Securities launch on June 1?
Kiwoom Securities officially launched its retirement pension business on June 1, introducing an online platform strategy that positions workers as the primary decision-makers in defined contribution (DC) pension plans. The company applied its mobile trading system 'Hero Gate' directly to retirement pension accounts, allowing customers to trade retirement pension ETFs in real time using the same interface as regular stock trading.
What is Kiwoom Securities' long-term goal in the retirement pension market?
Kiwoom Securities aims to achieve 10% market share within the securities industry and become a top 5 provider by 2035. Pyo Young-dae, Head of the Pension Platform Division, stated that the company will strengthen its individual investor base, digital platform competitiveness, and ETF-centered investment capabilities to grow into the most trusted 'investing pension' platform for customers, unless there is an unexpected major change in the retirement pension market.
