Retirement Pension Stock Exposure Jumps as Funds and ETFs Top 70%

The retirement pension investment landscape is changing quickly as South Korea’s stock market shows steep growth, including the Kospi’s recent move above the 7,000 mark. Money that had long stayed in principal-protected products such as deposits and government bonds is increasingly moving into exchange-traded funds (ETFs) and mutual funds. The share of funds and ETFs has reportedly exceeded 70%. The stock-market rally is influencing the investment choices of retirement pension participants and altering a structure that had centered on stable products. Depending on future market conditions, the importance of risk-asset allocation and product selection in retirement pensions is expected to grow. Source: mk.co.kr