3-, 5-, 7- and 10-year returns also rank first

An exterior view of Kyobo Life's headquarters. [Kyobo Life]
An exterior view of Kyobo Life's headquarters. [Kyobo Life]

Kyobo Life said Thursday that its non-principal-guaranteed retirement pension products ranked first in both short- and long-term returns among the top 15 providers by reserve assets — for both defined contribution (DC) and individual retirement pension (IRP) accounts — as of the end of the third quarter this year.

The insurer topped the rankings not only in the most recent one-year return but also in three-, five-, seven- and 10-year annualized returns.

Kyobo Life's non-principal-guaranteed products posted a one-year return of 23.3 percent for DC accounts and 22.81 percent for IRP accounts. Over the medium to long term, the three-year annualized return reached 18.51 percent for DC and 17.81 percent for IRP. The five-year figures were 8.73 percent and 8.31 percent, respectively, while the seven-year returns came in at 9.47 percent and 8.69 percent, and the 10-year returns at 6.74 percent and 6.3 percent.

Demand for ETF investment through retirement pension accounts has been growing. According to the Ministry of Employment and Labor and the Financial Supervisory Service, the balance of ETF investments held in retirement pension accounts reached 48.7 trillion won ($36.4 billion) at the end of last year, more than doubling for three consecutive years.

"We have been strengthening our competitiveness on the back of more than 40 years of accumulated retirement pension management expertise," a Kyobo Life official said. "In particular, a global diversification strategy that avoids overconcentration in domestic shares, combined with personalized one-on-one consulting services, has underpinned our strong returns."

Kyobo Life cited four factors behind the results: global diversification using a range of investment products including target date funds (TDFs) and ETFs; an upgraded ETF investment service for retirement pension accounts; a digital robo-advisor service (an AI-based asset management service); and enhanced personalized consulting for customers.

The company said it prioritizes TDFs, which adjust asset allocation in line with a customer's target retirement date, to support long-term diversified investment and help customers manage their retirement assets systematically over their life cycle. Kyobo Life also said it has built an open lineup system for retirement pension ETF products to broaden customers' product choices, selecting top-performing products through a comprehensive evaluation of short- and long-term ETF performance, volatility and management strategy.

The company has also improved investment convenience through an ETF auto-purchase system, which buys pre-designated ETFs when funds are deposited into an account, and an ETF installment purchase system that allows customers to invest a lump sum in regular tranches.

Kyobo Life said it is also expanding its digital services, using a robo-advisor to provide market analysis and recommended portfolios, and sending customers a monthly investment guide with the latest product information via messaging alerts.

In addition, the company selects investment products by combining assessments from external specialist institutions with internal research and big data analysis, and recommends optimal portfolios tailored to each customer's investment profile and life stage. It has also strengthened ongoing post-investment management, including regular performance reviews and rebalancing proposals in response to market changes.

"Achieving strong results even amid high market volatility is the outcome of consistently adhering to the principles of long-term diversified investment and putting customers first," said Moon Young-mi, head of Kyobo Life's corporate business division. "Going forward, we will continue to grow our customers' retirement assets in a stable manner and strengthen our consulting support to help them navigate market volatility."


kimstar@heraldcorp.com