SEOUL, KOREA – Banks are doing very well in attracting retirement pension deposit accounts. In contrast, the insurance companies that had accounted for more than 60 percent of the market since the retirement pension scheme made a debut in December 2005 have quickly lost grounds to a level of 30-percent market share.
As of the end of October, the total amount deposited in retirement pension funds has been 56,306.9 billion won, up 43.7 percent from the same month last year (39,182.6 billion won). It was because companies have competed to sign up for the account after the government mandated the scheme beginning in July this year.
The retirement pension balance with insurance companies was 17,830.5 billion won as of the end of October 2012, accounting for 31.7 percent of the total. The share of Samsung Life, the insurance industry leader, has shrunk to 14.2 percent from 15.8 percent in October 2011.
In contrast, that for banks has increased continuously. The percentage accounted for by 17 commercial banks was 49.9 percent from last October's 48.4 percent. Of the top-ten financial service companies with highest deposit amounts of retirement pension funds, seven were banks, from last year's six.
*Article provided by The Korea Economic Daily
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