South Korea Individual Pension Market to Reach 82 Trillion Won

September 19, 2011 ( - South Korea's new individual retirement pension market will likely reach 82 trillion won (US$72.4 billion) in 2030, an industry report says.
The Korea Herald reports the country’s financial regulator is planning to introduce the individual retirement pension scheme in July next year, under which employees and self-employed workers are eligible to receive their pension after a certain age. In June this year, the country’s parliament approved a revision of the law on retired employee benefits, which aims to better protect retired employees’ rights by tightening rules on early retirement benefits and increasing retirement pension coverage.

The report compiled by the Korea Insurance Research Institute (KIRI) said local insurers should take a more active role in providing retirees with suitable products that guarantee an annuity income, as the market is expected to grow down the road. According to the news report, South Korean insurers have been stepping up efforts to boost sales of retirement pension products as the country’s population ages rapidly.

Meanwhile, South Korea’s retirement pension market is expected to top 190 trillion won in 2020, another industry report said earlier. The country’s retirement pension market stood at 29 trillion won in 2010.