Severance Pension Assets Reach 550 Trillion Won... FSS Governor Emphasizes Guidance and Education for Long-Term, Diversified Investment

Financial Supervisory Service (FSS) Governor Lee Chan-jin emphasized the role of the financial sector today (Nov. 3), stating, "Guidance and education must be supported so that severance pension subscribers can practice asset allocation investments from a long-term perspective."

Speaking at the launch ceremony of the 1st Long-Lasting Severance Pension Campaign held at the FKI Tower in Yeouido, Seoul, this afternoon, Governor Lee noted, "Even though severance pensions are precious assets that must be managed to support life after retirement, the reality is that excessive short-term trading and concentration in specific asset classes are occurring," making these remarks.

The size of severance pension reserves is expanding every year, reaching 558.3 trillion won as of the end of June.

Bolstered by a booming stock market, the number of defined contribution (DC) conversion subscribers from January to July more than doubled compared to the same period last year.

As of the end of last year, 33.9% of DC subscribers invested more than half of their DC account reserves in risky assets.

Accordingly, the FSS is launching the campaign in four directions—Learn, Open, Nurture, and Grow—so that anyone can easily start managing their pensions.

First, life-cycle guidebook will be published and utilized for subscriber guidance and education, alongside nationwide outreach education.

The FSS will regularize "Pension Filling Week" every year in November and December, a period preparing for year-end tax settlements, and "Pension Cultivating Week" in May and June to encourage subscribers to review their asset management methods.

Plans are also underway to substantiate education provided by severance pension service providers and to upgrade the severance pension portal into a comprehensive information platform, thereby reinforcing infrastructure such as product and disclosure systems.

The FSS stated, "Starting with this campaign alongside severance pension providers, we plan to raise subscribers' understanding of long-term and diversified investments and create an environment for practical implementation."

Attendees at the event included the Korea Federation of Banks, Korea Financial Investment Association, Korea Life Insurance Association, General Insurance Association of Korea, and severance pension providers, who also signed a memorandum of understanding (MOU) to establish a culture of long-term investment.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.