KOREA CAPITAL MARKET INSTITUTE

In the era of population aging, life expectancy as long as 100 years without sufficient financial preparation can be a curse rather than a blessing. Korea is turning to an aging society at an unprecedentedly rapid pace. The OECD has long recommended to achieve a 70% income replacement rate via a multi-polar pension system. Although Korea accordingly established the institutional framework including the first (public pension), second (retirement pension), and third (personal pension) pillars, its actual income replacement rate has just passed 40%. This stems from Korea’s immature pension system, and unreasonable investment management of pension assets. In order to create the stable and sufficient stream of post-retirement income, accumulation of pension assets and efficient management of those assets should be top priority among others.

Against the backdrop, Korea Capital Market Institute will host its 19th anniversary seminar titled “The Present and Future of Pension Investment Management”. In response to today’s aging phenomenon linked to population sociology and the new asset management environment of low interest rates, this seminar will shed light on Korea’s institutional framework for a new pensions system, as well as the current trend in terms of investment management, based on which to seek improvements from a broader perspective of post-retirement income security. More specifically, speakers at this seminar will touch upon the recent pension trends and their implications, e.g., a stronger role of private pensions for financial stability of public pensions, and increased DC plans in corporate pensions. Also discussed will be the efforts private and public pension funds should muster up to better cope with the new, formidable financial market environment where constant risks and low interest rates become the norm. Based on those discussions, this seminar will propose a desirable management direction that is best suited for the long-term nature of pension investment.

We hope that this seminar will offer timely and substantial help to financial authorities bracing for an institutional reform, as well as pension funds and other financial institutions dealing with tough challenges of higher investment returns. We kindly ask for your support and participation in this event.