Woori Bank recorded an 18.4 percent return in the third quarter on non-principal-protected defined contribution (DC) retirement pension products. It was the highest among the top 10 retirement pension providers by assets across banking, securities and insurance. The bank also posted an 18.3 percent return on individual retirement pensions (IRP), ranking third.

Woori Bank said on Oct. 22 it achieved the results in retirement pension comparison disclosures released by the Financial Supervisory Service on Oct. 16.

Among the top 10 providers by assets, Woori Bank moved up one place from the previous quarter in both DC and IRP return rankings. Narrowing the scope to the four major commercial banks, it ranked first in DC and second in IRP.

Woori Bank said the results reflected joint efforts by its headquarters and branches to review clients' pension assets and strengthen portfolio management using domestic and overseas investment products.

It is also pursuing measures to strengthen competitiveness in principal-protected products. Woori Bank received approval in August from the Ministry of Employment and Labor for a revision that includes guaranteed interest contracts (GIC) in its stable default option. It said this was the first case in the banking and securities sectors.

A default option is a system that manages funds in a pre-set way when a participant does not give instructions on how to manage contributions. A GIC is an insurance product that guarantees an agreed interest rate for a set period.

Woori Bank plans to use GICs in a stable default option portfolio worth about 4 trillion won to adjust its existing management structure centered on time deposits and pursue improved returns for customers who prefer stable management.

Jeong Cheong-rak (정청락), head of Woori Bank's pension business division, said, "Diversifying products and strengthening wealth management services, taking into account investment demand for each participant, was reflected in returns." He added, "We will support retirement asset management by enhancing competitiveness not only in investment products but also in principal-protected products."