"The Era of 'Investing Pensions'... Consistent Buying with Systematic ETF Investing" [Retirement Pension Investment Strategy]③

Interview with Youngdae Pyo, Head of Pension Platform Division at Kiwoom Securities
Emphasizing Diversification and Systematic Investing in Bull Markets
"100 minus age" Rule for Risky Assets... Withdrawal Strategies from Your 50s

Kiwoom Launches Retirement Pension Business - "Easy Pension Investing for Everyone"
Introduction of AI Automated Portfolio Investment Solution

"When market sentiment is highly optimistic about index gains, it becomes even more important to stick to the principles of diversification and systematic investing, rather than excessive concentration. A consistent ETF accumulation strategy helps mitigate the risk of buying at market highs."

In a recent interview with The Asia Business Daily, Youngdae Pyo, Executive Director and Head of Pension Platform Division at Kiwoom Securities, underscored that "retirement pensions are not for short-term trading, but for long-term investment spanning several decades." He emphasized that, especially as the KOSPI approaches the 9,000 mark, systematic ETF investing not only boosts profitability but also helps mitigate risk.

Pyoh Youngdae, Executive Director and Head of Pension Platform Division at Kiwoom Securities. Kiwoom Securities

He also recommended Target Date Funds (TDFs), which automatically adjust the proportion of risky assets over the long term based on one's retirement timeline. Pyo stated, "By utilizing products like TDFs, which automatically adjust asset allocations according to your retirement date, you can benefit from long-term compound growth without being swayed by market volatility. I encourage investors to review the balance between domestic and global stocks and bonds within their portfolio, especially during volatile periods."

He particularly noted that securities firms have strengths in offering products that can enhance "returns" in the retirement pension market. Pyo explained, "While banks and insurance companies excel at stable management centered on principal-guaranteed products, they face limitations in raising real returns in a low-interest environment. Securities firms, on the other hand, can pursue higher long-term returns through a wide range of investment products such as ETFs, TDFs, and performance-based funds."

Regarding asset allocation by age group, Pyo explained that the "100 minus age" rule for holding risky assets still applies. "For those in their 20s and 30s, it is fine to maintain a high proportion of growth assets such as global equity ETFs," he said. "However, the key is to invest consistently through systematic investing without being shaken by short-term volatility." For those in their 40s, he advised, "This is the time to balance aggressive and stable assets," adding that "TDFs are especially useful at this stage."

He also highlighted that from one's 50s onward, it is important to consider not only investment but also withdrawal strategies for pensions. Pyo noted, "While it is wise to shift focus toward asset preservation, it is also important to maintain a certain proportion of performance-based products to hedge against inflation and to prepare a withdrawal strategy." He added, "Kiwoom Securities plans to provide integrated management of retirement and private pensions, and to support the entire lifecycle by offering consolidated withdrawal services at the payout stage."

Kiwoom Securities launched its retirement pension service on June 1, 2026. Although the market has already grown to the 500 trillion won range, the company believes a true blue ocean is opening up, given the shift from defined benefit (DB) plans to defined contribution (DC) and individual retirement pensions (IRP), as well as the transition from principal-guaranteed to performance-based investment pensions. Kiwoom Securities aims to rapidly expand its base of individual DC and IRP subscribers by emphasizing the convenience of its online-centric services. Pyo stated, "We may be a latecomer in the retirement pension market, but we are pioneers when it comes to online investment platforms. From the outset, Kiwoom Securities was designed with the latest digital environment, subscriber-centric services, and streamlined work processes. As a purely online brokerage, we can focus our entire capacity on non-face-to-face services," he said.

He also highlighted the strength of allowing users to invest their retirement pension as easily as they have traded stocks in the past, aligning with the era of 'investing pensions.' Pyo explained, "We have applied the familiar HeroMTS mobile trading system environment to retirement pensions, so users can invest without any sense of unfamiliarity. We have also prepared an AI-powered automated portfolio investment solution for those with limited investment experience."

Pyo expressed his ambition to achieve a 10% market share in the securities industry within the next 10 years. "Ultimately, our goal is to establish ourselves as a 'comprehensive pension asset management platform' that connects retirement pensions, private pensions, and ISAs into a single, integrated platform," he said. "We will do our utmost to help customers achieve a prosperous retirement and become pension millionaires through Kiwoom Securities."

This content was produced with the assistance of AI translation services.