Launches Hana Bank's pioneering gold investment trust for Korea's market
Hana Bank has taken a significant step forward in the financial sector with the launch of South Korea's first real gold investment trust, known as the "Hana Gold Trust Operation." This pioneering product allows customers to invest in and store physical 24-karat gold while earning annual yields in cash or bullion.
The trial launch of this innovative product will take place at the Seocho Financial Center and Sales Department 1 starting on Monday, with plans to expand to 26 branches in Seoul and Busan later in the month.
How the Gold Trust Works
Customers who consent to the investment will receive the appraised gold. The minimum investment weight for the product is 100 grams. The trust enables investors to hold actual gold through the financial system rather than buying gold items, offering transparent pricing and easier disposal through an agreement with the Korea Gold Exchange.
The entrusted gold will be appraised through the mobile web via Korea Gold Exchange Digital Asset. The investment offers an annual management yield of 1.5 percent of appraised value, which can be received either in cash or physical gold.
Economic Impacts and Significance
The new gold investment trust aims to increase the circulation of gold, a highly liquid asset. This could boost gold consumption and investment demand, improving gold circulation in the market.
Moreover, turning physical gold into a profit-generating asset encourages more customers to invest in gold via formal financial channels. This could stimulate the economy by increasing investment product variety and improving market transparency.
The product also aims to enhance the financial sector’s profitability and innovation in trust products. Hana Bank's strategy to grow its trust business and similar financial institutions' moves in related sectors suggest that this could be a trend in the financial industry.
Gold holds deep significance in Korea's history, particularly during economic crises. For instance, during the 1997 Korean currency crisis, gold played a pivotal role, leading to a "gold collecting campaign" in Korea. The new product launched by Hana Bank is intended to support the broader economy.
The Future of Asset Management
The company official stated that the product aims to view real gold as an 'investable asset.' Hana Bank plans to introduce more innovative products that could shift the paradigm in asset management. By helping customers generate profit through management with the new product, Hana Bank is aiming to both deepen the gold market and contribute to broader economic activity through increased investment and consumption.
[1] Korea JoongAng Daily, "Hana Bank launches gold investment trust", link
[2] The Investor, "Hana Bank launches gold investment trust", link
[3] Yonhap News, "Hana Bank launches gold investment trust", link
Customers who invest in the Hana Gold Trust Operation can store physical 24-karat gold while earning annual yields, either in cash or bullion. The product's launch, which includes plans to expand to 26 branches in Seoul and Busan, aims to increase gold circulation and stimulate the economy by encouraging more investing in real-estate backed assets like gold.
With its innovative approach to viewing gold as an 'investable asset', Hana Bank aims to deepen the gold market, contribute to broader economic activity, and potentially shift the paradigm in asset management, offering investors the opportunity to profit from investing in real gold.
