Ministry of Labor, Financial Supervisory Service, meeting with retirement pension providers... “Subscriber interests are top priority”

Explanation of measures to strengthen functions such as mandatory external accumulation of retirement benefits and fund-type retirement pension

(Seoul = Yonhap News) Reporter Hyewon Han = Minister of Employment and Labor Kim Young-hoon and Financial Supervisory Service Commissioner Lee Chan-jin held a meeting with retirement pension providers at the Royal Hotel in Jung-gu, Seoul on the 6th.

The meeting was attended by the presidents of Hana, Shinhan, KB Kookmin, and Woori Bank, the presidents of Samsung Life Insurance, Hanwha Life Insurance, and Kyobo Life Insurance, and the presidents of Mirae Asset and NH Investment & Securities.

Minister Kim and Director Lee shared with retirement pension operators the main contents of the plan to strengthen retirement pension functions announced by the government on the 29th of last month and listened to the operators' opinions.

In his greeting, Minister Kim said, “This plan, which focuses on mandating external accumulation of retirement benefits and revitalizing fund-type retirement pensions, is a time of important change that opens a new paradigm for retirement pensions,” and added, “For the agreement reached through difficulty between labor, management, and government to work properly in the field, cooperation from business operators is essential.”

Minister Kim went on to emphasize that financial companies should also guide small businesses to require external accumulation of retirement benefits and establish a fund management system that prioritizes the interests of retirement pension subscribers.

Director Lee said, “In order to establish a fund-type retirement pension, we ask you to strengthen the internal control system commensurate with trustee responsibilities and strive to establish a sound business order that puts the interests of subscribers first,” and added, “The Financial Supervisory Service will also actively support retirement pensions so that they can grow into a strong support for people’s retirement.”

At the subsequent meeting, retirement pension providers suggested that a joint public-private system be established to support small businesses in relation to mandatory external accumulation of retirement benefits, the Ministry of Labor reported.

In addition, there was an opinion that there should be sufficient preparation period for the approval of the fund-type retirement pension system, and that laws and systems should be improved to launch various pension products.