New Retirement Plan Provider Offers One-Year Fee Waivers and Performance Guarantees

Kiwoom Securities announced a new strategic approach to its retirement pension business on May 28, 2026, introducing a performance-linked fee structure designed to attract new clients to its platform.

The company is implementing a fee waiver policy for all its retirement pension products, including Defined Contribution (DC), Defined Benefit (DB), and Individual Retirement Pension (IRP) accounts. Under this policy, fees for these products will be waived for a period of one year.

For Individual Retirement Pension (IRP) accounts, Kiwoom Securities has introduced a specific performance guarantee. The company stated it will not charge fees if the IRP does not generate a return of at least 120 percent of the interest earned on deposits.

This aggressive pricing strategy is a response to the company’s position as a latecomer in the retirement pension market. By linking fee collection to a specific return threshold—specifically 1.2 times the deposit interest—the firm aims to differentiate its offering from established competitors.

In addition to the performance-linked waiver for IRPs, the company’s terms specify that management fees will be waived if the annual rate of return is equal to or lower than the designated benchmark index.

The move coincides with broader tax incentives available for retirement pension contributors in South Korea. According to company documentation, individuals who contribute up to 9 million KRW annually to their retirement pensions can receive a maximum tax credit of 1.485 million KRW per year.

The specific tax credit rate depends on the contributor’s annual income level:

• Individuals with an annual earned income of 55 million KRW or less are eligible for a tax credit rate of 16.5 percent, including local income tax.
• Individuals with an annual earned income exceeding 55 million KRW are eligible for a lower tax credit rate.

The implementation of these fee waivers and the focus on performance-based returns are part of Kiwoom Securities’ broader effort to establish a foothold in the competitive retirement asset management sector.