Most pension savings funds have posted negative yields this year, while such products are attractive to investors seeking tax benefits, data showed Monday.
The average return of 227 such pension funds here, each with initial assets of 1 billion won ($840,000) under management, stood at minus 2.6 percent as of Friday, the data compiled by industry tracker FnGuide.
The three-month and six-month yield rates were minus 0.37 percent and minus 0.17 percent, respectively.
For people who bought the products in late 2015, the one-year return rate was 0.08 percent, far lower than interest rates for bank deposits.
But those products still remain appealing to investors in search of tax incentives as holders of the long-term funds are eligible for tax deductions of up to 4 million won of payment per year.
"Besides, investors don't need to pay separate resale fees for pension savings funds," said Ahn Yoon-shul, a researcher at the Korea Retirement Planning Institute. "So they can change funds anytime to high-yielding ones." (Yonhap)
