Samsung Securities overtook Korea Investment & Securities to claim second place among 15 securities firms in retirement pension reserves as of June 2024, according to the Financial Supervisory Service's integrated pension portal released on December 23. Samsung's reserves reached 28.0919 trillion won, a 10.8136 trillion won increase from June 2023, while Korea Investment held 26.4044 trillion won after adding 8.8397 trillion won over the same period. One year earlier, Korea Investment led by nearly 300 billion won with 17.5647 trillion won compared to Samsung's 17.2783 trillion won. Samsung's faster growth stemmed from aggressive expansion in defined contribution (DC) plans and individual retirement pension (IRP) accounts, which have seen rising demand as investors increasingly favor ETF-based performance-linked products for long-term returns. Securities firms are narrowing the gap with banks that have historically dominated Korea's retirement pension market through large-scale corporate DB reserves.
Samsung Securities Doubles DC Reserves in One Year
Samsung Securities' DC reserves nearly doubled from 5.6948 trillion won in June 2023 to 11.3037 trillion won in June 2024. Individual IRP accounts grew from 7.453 trillion won to 12.8047 trillion won over the same period, an increase exceeding 5 trillion won. In contrast, the firm's defined benefit (DB) reserves declined from 4.1305 trillion won to 3.9835 trillion won. DC and IRP products allow account holders to manage assets directly, making them more responsive to demand for performance-linked instruments like ETFs compared to employer-managed DB plans.
Korea Investment Securities Maintains DB Leadership
Korea Investment & Securities demonstrated stable growth centered on DB reserves, which increased from 7.3496 trillion won in June 2023 to 7.6263 trillion won in June 2024. The firm ranked second among securities companies in DB reserves, trailing only Hyundai Motor Securities with reserves in the 15 trillion won range. Korea Investment's DC reserves grew from 4.3697 trillion won to 7.9469 trillion won, while IRP accounts expanded from 5.8454 trillion won to 10.8312 trillion won. The firm's corporate client base reflects its strength as a traditional retirement pension provider.
Securities Firms Expand DC and IRP to Challenge Banks
Securities firms are focusing on closing the gap with banks that have accumulated large-scale retirement pension reserves over an extended period. Firms are differentiating themselves by promoting performance-linked products such as ETFs to attract DC and IRP subscribers, while enhancing specialized pension consulting services and mobile investment convenience. An industry official stated that retirement pension operations exhibit economies of scale, with larger reserves generating proportionally higher fee income and establishing a stable revenue base.
FAQ
What were Samsung Securities' retirement pension reserves as of June 2024?
Samsung Securities held 28.0919 trillion won in retirement pension reserves as of June 2024, representing an increase of 10.8136 trillion won from June 2023.
How did Korea Investment & Securities' reserves change over the same period?
Korea Investment & Securities' reserves reached 26.4044 trillion won in June 2024, up 8.8397 trillion won from 17.5647 trillion won in June 2023.
Which type of pension account drove Samsung Securities' growth?
Samsung Securities' growth was driven primarily by DC and IRP accounts. DC reserves nearly doubled from 5.6948 trillion won to 11.3037 trillion won, while IRP accounts increased from 7.453 trillion won to 12.8047 trillion won.
