South Korea's DB Pension Funds Fall for First Time in H1 2026, DC and IRP Surge 61.7 Trillion Won

According to the Korea Financial Supervisory Service, defined benefit (DB) pension funds declined 4.7 trillion won in the first half of 2026, marking the first semi-annual decrease on record as of July 20. Meanwhile, defined contribution (DC) and individual retirement pension (IRP) funds surged 61.7 trillion won combined over the same period.

Total domestic pension fund assets reached 553.9 trillion won as of end-H1, up 57.1 trillion won (11.5%) from year-end 2025. DB pension fund share fell sharply to 40.5% from 46.1%, while DC and IRP combined accounted for the majority. Among financial institutions, Shinhan Bank overtook Samsung Life Insurance as the top provider with 58.9 trillion won in pension assets, while brokerage firms' market share rose 3.3 percentage points to 29.8%, reflecting increased investor preference for self-directed equity investment through ETF trading.