Retirement Pension In-Kind Transfers Reach 6.9 Trillion Won in H1... Double Last Year’s Volume

Cumulative Total Reaches 15.9 Trillion Won Since Service Launch... Major 'Money Move' to Securities Firms
TF Kickoff Meeting Held
Plans in Place to Allow DC-to-IRP Transfers and Other Reforms

In the first half of this year, the volume of in-kind transfers for retirement pensions has nearly reached 7 trillion won, showing more than a twofold increase compared to a year ago. Since the introduction of the in-kind transfer service, the total amount transferred by the end of June has accumulated to 15.9 trillion won. Financial authorities plan to introduce institutional improvements, including allowing transfers from defined contribution (DC) retirement pensions to another provider’s individual retirement pension (IRP), and including funds with suspended redemptions as eligible for in-kind transfers.

According to the Financial Supervisory Service on August 24, the scale of in-kind transfers of retirement pensions in the first half of this year reached 6.9 trillion won, more than doubling from 3.2 trillion won in the first half of the previous year. On a half-yearly basis, the volumes have continued to grow, from 1.9 trillion won in the second half of 2024, to 3.2 trillion won in the first half of 2025, 3.8 trillion won in the second half of 2025, and now 6.9 trillion won in the first half of this year.

The retirement pension in-kind transfer service is a system that allows subscribers to move their accounts to a new retirement pension provider without selling or liquidating their existing investment products. From the service launch on October 31, 2024, through the end of June this year, about 250,000 cases totaling 15.9 trillion won were transferred. On a daily average, this represents 26.1 billion won and 409 cases moved per day.

By industry, transfers from banks to securities firms have been particularly notable. From the beginning of the service to the end of June, transfers from banks to securities companies amounted to 5.2 trillion won, accounting for 33% of the total. Transfers between banks reached 4.5 trillion won, or 28% of the total. Looking at net inflows by sector, securities companies had the largest with 4.1513 trillion won. Banks recorded a net outflow of 3.9714 trillion won, while the insurance sector saw a net outflow of 179.9 billion won. By plan type, transfers were most active in IRPs at 6.8 trillion won, followed by DC plans at 4.8 trillion won, and defined benefit (DB) plans at 4.3 trillion won.

However, a current limitation is that in-kind transfers are restricted to within the same plan type. Transfers can only happen between DB to DB, DC to DC, or IRP to IRP, making it difficult to transfer from a DC plan to another provider’s IRP. Also, accounts holding funds with suspended redemptions are restricted from in-kind transfers. Additional issues were reported, such as delays arising from the mandatory recording of consent during the transfer process, and insufficient explanation of specific reasons when transfer applications are canceled or rejected.

On this day, the Financial Supervisory Service launched a ‘Retirement Pension In-Kind Transfer Improvement Task Force (TF)’ with Korea Securities Depository, financial industry associations, and major retirement pension providers participating, initiating a full-scale effort to improve the system. The Task Force will develop systems to allow transfers from DC plans to another provider’s IRP and consider including funds with suspended redemptions as eligible products. It also plans to establish safe non-face-to-face confirmation methods in addition to recordings, and improve procedures to provide specific reasons to subscribers when in-kind transfer applications are canceled or rejected. The TF will operate through 2027.

An official from the Financial Supervisory Service said, “With today’s TF kickoff meeting, we aim to finalize the improvement plan by September and begin system development in October,” adding, “We will continue improving the system so more retirement pension subscribers can conveniently use the in-kind transfer service.”

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