Business · Markets · 1 hr ago
South Korean retirement funds shift away from investment products
In South Korea, retirement savers shifted away from market-linked products in the third quarter.
The change involved defined-contribution (DC) and individual retirement pension (IRP) accounts, which savers manage themselves.
These products do not guarantee returns, unlike principal-protected options.
Their share had risen for 11 straight quarters, reaching 52.9% in the second quarter, but fell to 50.7% in the third quarter.
The KOSPI fell more than 19% during the quarter, reducing investment valuations, while some new contributions went into protected products.
Across 41 providers with retirement savings, 38 saw the share of non-guaranteed products decline; banks recorded the largest sector drop.
Their average one-year return fell to 15.95% from 50.63% in the second quarter, and continued market weakness could push the share lower.
The share of South Korean retirement pension funds in investment products that do not guarantee principal or interest fell in the third quarter for the first time in three years.
The share for defined-contribution and individual retirement pension accounts dropped 2.3 percentage points to 50.7%.
The decline followed a stock market correction, which reduced the value of investment products and increased demand for safer assets.
The funds’ average one-year return on non-guaranteed products fell to 15.95% in the third quarter, from 50.63% in the second quarter.
- Who
- South Korean retirement pension account holders and the 43 pension providers covered by the analysis.
- What
- The share of defined-contribution and individual retirement pension assets in non-guaranteed products fell to 50.7%.
- When
- In the third quarter; the article was published on November 6, 2026.
- Where
- South Korea.
- Why
- A stock market correction lowered investment-product valuations, while market volatility and higher interest rates strengthened demand for safer assets.
This story does not have two clearly opposing sides.
Non-guaranteed products accounted for 22.3% of defined-contribution and individual retirement pension assets.
The share began rising each quarter.
The share reached 52.9%.
The share fell to 50.7%, its first quarterly decline in three years.
- Providers analyzed
- 43
- Third-quarter asset share
- 50.7% in non-guaranteed products
- Change in share
- Down 2.3 percentage points from the second quarter
- Third-quarter account assets
- 320.8444 trillion won in defined-contribution and individual retirement pension plans
- Non-guaranteed product balance
- 162.5641 trillion won in the third quarter