South Korea's Retirement Fund Assets Hit Record 553.8 Trillion Won in Q2 on Stock Rally, Up 45 Trillion

According to data from South Korea's Financial Supervisory Service released on July 23, the country's 43 retirement fund operators (securities firms, insurers, and banks) recorded total retirement fund assets of 553.8 trillion won in the second quarter, up 45 trillion won from 508.7 trillion won in Q1. Individual-managed DC (Defined Contribution) and IRP (Individual Retirement Pension) accounts led inflows, with DC assets rising to 163.3 trillion won and IRP to 166.3 trillion won, each up over 20 trillion won from Q1. In contrast, company-managed DB (Defined Benefit) accounts grew only 3 trillion won. The securities industry captured nearly half of new fund inflows, with 15 securities firms increasing combined assets from 141.7 trillion won to 165 trillion won. Returns for performance-based accounts jumped 2-3 fold, with DC and IRP yields reaching 40-60% in Q2 versus 20-30% in Q1, as the KOSPI surged above 9,000.
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