Investment capabilities, governance and digital competitiveness to be strengthened

Mid- to long-term strategy unveiled in response to government's pension reform plan

Collaboration with UK-based WTW shared as part of Korean fund-type model preparation

Executives and employees of four Hanwha Financial affiliates pose for a commemorative photo at the "Hanwha Financial Retirement Pension 2030+ Vision Declaration" ceremony held at the 63 Building in Yeouido, Seoul, on Friday. From fifth from the left in the front row: Jang Byeong-ho, CEO of Hanwha Investment & Securities; Lee Kyeong-geun, CEO of Hanwha Life Insurance; Kwon Ki-seop, former chairman of the Economic, Social and Labor Council; Na Chae-beom, CEO of Hanwha General Insurance; and Im Dong-jun, CEO of Hanwha Asset Management. [Hanwha Life Insurance]
Executives and employees of four Hanwha Financial affiliates pose for a commemorative photo at the "Hanwha Financial Retirement Pension 2030+ Vision Declaration" ceremony held at the 63 Building in Yeouido, Seoul, on Friday. From fifth from the left in the front row: Jang Byeong-ho, CEO of Hanwha Investment & Securities; Lee Kyeong-geun, CEO of Hanwha Life Insurance; Kwon Ki-seop, former chairman of the Economic, Social and Labor Council; Na Chae-beom, CEO of Hanwha General Insurance; and Im Dong-jun, CEO of Hanwha Asset Management. [Hanwha Life Insurance]

Four Hanwha Financial affiliates have unveiled a mid- to long-term strategy to prepare for structural changes in the retirement pension market, including the introduction of a fund-type pension regime. The companies plan to strengthen investment capabilities and internal controls while enhancing product and service competitiveness to expand their foothold in the 500 trillion won ($374 billion) retirement pension market.

Hanwha Life Insurance, Hanwha General Insurance, Hanwha Investment & Securities and Hanwha Asset Management held the "Hanwha Financial Retirement Pension 2030+ Vision Declaration" ceremony at the 63 Building in Yeouido, Seoul, on Friday, the companies announced Monday. About 140 executives and employees from each affiliate attended the event.

The ceremony was organized immediately after the government announced its "Retirement Pension Function Enhancement Plan" on Thursday, which includes mandatory external reserve requirements for retirement benefits and measures to promote fund-type retirement pensions. As the introduction of the fund-type system and improvements to the existing contract-type system move forward, financial firms' investment capabilities and product and service competitiveness are emerging as key factors that will shape the market landscape.

Through the vision declaration, Hanwha Financial presented three strategic priorities: strengthening professional investment capabilities, establishing sound governance and internal control systems, and enhancing product, service and digital competitiveness. The plan is to build the expertise and management capacity needed for fund-type retirement pensions while meeting customer demand for retirement asset management in the defined-contribution and individual retirement pension markets.

The ceremony featured a presentation on "The Direction and Preparation Process for a Korean Fund-Type Model," covering approaches to securing investment capabilities and governance, as well as collaboration with UK-based global consulting firm WTW. Progress reports reviewing each affiliate's retirement pension business status and key improvement initiatives were also presented.

Kwon Ki-seop, former chairman of the Economic, Social and Labor Council and former vice minister of Employment and Labor, delivered a special lecture at the event. "In the era of fund-type retirement pensions, it is important to establish transparent governance and fiduciary responsibility that prioritizes the long-term interests of subscribers, and to provide pension solutions tailored to each stage of life," Kwon said.

Lee Kyeong-geun, CEO of Hanwha Life Insurance, described the event as "an occasion to share the direction each affiliate should pursue in line with market changes and to review the tasks needed to prepare for future business." Lee added that the company would "provide retirement pension services that customers can trust and rely on, with their long-term interests as the top priority."

Meanwhile, under the government's retirement pension enhancement plan, the mandatory external reserve requirement for retirement benefits will be rolled out in three phases — starting with workplaces with 100 or more employees in 2028 and expanding to those with fewer than 10 employees by 2030. Fund-type retirement pensions are set to be introduced in three forms: a financial institution open type, a joint type and a public institution open type.


won@heraldcorp.com