Kiwoom Securities to Launch Retirement Pension Business in June

Kiwoom Securities will enter the retirement pension market in the first half of this year. The company aims to launch related services in June upon completing the registration process with financial authorities. The move is seen as a strategy to diversify beyond its brokerage-centered revenue structure by strengthening its pension and asset management operations.

According to the Seoul Economic Daily on the 3rd, Kiwoom Securities recently applied to the Financial Services Commission for registration as a retirement pension provider. Since the retirement pension business operates under a registration system rather than a licensing system, the registration is expected to be completed as early as this month following due diligence by the Financial Supervisory Service. Sources say Kiwoom Securities is internally preparing to launch services in June once the registration process is finalized.

Organizational restructuring has already progressed substantially. Since 2024, Kiwoom Securities has established a task force and recruited Pyo Young-dae, a managing director who oversaw retirement pension operations at Mirae Asset Securities, to prepare for market entry focused on Individual Retirement Pensions (IRP). The company had originally planned to launch services in the second half of last year, but the timeline was adjusted due to IT system development and personnel recruitment.

This expansion is interpreted as an effort to extend business operations beyond the intensely competitive retail sector. Kiwoom Securities holds the top market share in domestic stock brokerage and has secured a substantial base of individual investors. Analysts suggest that leveraging this existing customer base for IRP account acquisition could accelerate the company's initial market establishment. Its non-face-to-face sales capabilities through its Mobile Trading System (MTS) are also expected to support pension subscription growth.

Financial performance has also been on an upward trajectory. Kiwoom Securities reported consolidated operating profit of 1.4882 trillion won last year, up 35.5% year-over-year. Fourth-quarter operating profit reached 345.6 billion won, surging 91.8% from the same period a year earlier, demonstrating clear quarterly improvement.

The retirement pension market itself is expanding rapidly. According to the FSS Integrated Pension Portal, total reserves held by 42 domestic retirement pension providers reached 496.8 trillion won at the end of last year, up 15.1% from 431.7 trillion won at the end of the previous year. With reserves approaching 500 trillion won, the pension market has emerged as a key battleground among securities firms, banks, and insurers. With individual fund inflows expanding particularly through IRPs, securities firms with strong online channel capabilities are expected to intensify their offensive.

Upon completing registration, Kiwoom Securities will become the 15th securities firm to operate as a retirement pension provider. With Kakao Pay Securities also reportedly considering entry into the retirement pension market, competition among digital-based securities firms in the pension sector is expected to intensify. An industry official noted, "The pension market values long-term returns and trust over short-term performance," adding that "success will depend not only on platform competitiveness but also on investment performance and product differentiation."