[Teheran-ro] The Story of Manager Kim in the KOSPI 5000 Era

"What if Manager Kim had invested his retirement fund of 1 billion won in retirement products such as a Target Date Fund (TDF) or an Exchange-Traded Fund (ETF), instead of commercial real estate?"
The recently popular drama, 'The Dream Life of Mr. Kim,' has resonated with many office workers. Manager Kim, who has worked at a major corporation for 25 years, owns a nice home in Seoul and has a child employed at a startup, portraying the life of a successful middle-class man in his 50s.
However, after an unexpected early retirement, Manager Kim invested over 1 billion won in commercial property, using his severance pay and additional loans, only to fall victim to a scam. This put his retirement plans at risk. In the drama, Manager Kim struggles, taking on side jobs as a chauffeur and even seeking psychiatric treatment.
One can't help but wonder if Manager Kim could have avoided panic disorder had he invested his 1 billion won in retirement products or adopted an asset allocation strategy instead of focusing solely on commercial property.
According to the recently published '2025 KB Golden Life Report' by the KB Management Research Institute, only 19.1% of respondents said they were well-prepared for retirement. This figure is 2.1 percentage points lower than the survey conducted two years ago. Meanwhile, the proportion of those who felt unprepared for retirement rose from 44.6% in 2023 to 49.7%, a 3.1 percentage point increase.
While the stock market is reaching all-time highs and the KOSPI 5000 era is approaching, the prospect of a shorter retirement period suggests it is time to pay more attention to asset allocation strategies. Experts unanimously recommend focusing on pension products and customized portfolio products such as Target Date Funds (TDFs)—which automatically adjust asset allocation based on retirement timing—or dividend-type ETFs, rather than direct investment, especially given the increased market volatility.
If Manager Kim had invested in the Korea Composite Stock Price Index (KOSPI) ten years ago, he could have earned an annual total return of 9-10%, including dividend yields. This simple calculation is based on the KOSPI index rising from 1,961.31 at the end of 2015 to a record high of 4,221.87, plus dividend yields over the past decade.
In that case, Manager Kim would not envy landlords collecting 10 million won in monthly rent. As the KOSPI 5000 era dawns, now is the right time to break away from blind faith in real estate and expand the scope of pension asset management to include stocks. For a stable retirement, it is crucial to pay attention to various pension systems and products, keep an eye on major economic and market changes, and focus on growing your retirement assets.
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