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Hana Bank introduces new gold trust investment program
This article is by Paik Ji-hwan and read by an artificial voice.
Hana Bank introduced a new gold trust product on Monday that allows customers to store physical gold and earn returns through investment, marking the first such offering in the Korean financial industry.
With the launch of the new program with a name that translates to "Hana Gold Trust Operation," the bank now offers a full lineup of gold trust products that cover storage, investment and disposal.
The launch follows Hana Bank's agreement in June with Korea Gold Exchange and the rollout of its "Hana Gold Trust Disposal" product, which allows customers to sell gold at more transparent prices. When selling gold at a jewelry shop, the price is usually set at the owner's discretion, but under "Hana Gold Trust Disposal," the price is based on the rate posted by Korea Gold Exchange.
Through the "Hana Gold Trust Operation," the bank aims to turn gold into a source of profit for customers while also improving the circulation of physical gold in the market, which could boost consumption and stimulate the economy.
Under the new product, customers can deposit their gold with Hana Bank and then get it back along with investment returns equivalent to 1.5 percent of the value appraised by the Korea Gold Exchange. The 1.5 percent rate is based on the annual interest rate before taxes and fees as of Monday.
Eligible deposits are limited to 24-karat gold, with a minimum weight of 100 grams (3.5 ounces). The product began pilot operations Monday at the bank's Seocho Finance Center and its Business 1 Department branch, and will expand to 26 branches - 25 in Seoul and the Haeundae Dongbaek branch in Busan - starting Aug. 18.
The "Hana Gold Trust Operation" could change perceptions about gold as an asset, a Hana Bank representative said.
"We expect this to be the starting point for recognizing that physical gold can also be an investable asset," the spokesperson said. "We will continue to release innovative products that offer a new paradigm in wealth management and solidify our position as a leading trust bank."
The price of 24-karat gold was approximately 3.8 millon won ($2,700) per ounce as of Jan. 1, and it stood at around 4.6 millon won per ounce as of Friday.
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By Newsroom of the Korea JoongAng DailyThis article is by Paik Ji-hwan and read by an artificial voice.
Hana Bank introduced a new gold trust product on Monday that allows customers to store physical gold and earn returns through investment, marking the first such offering in the Korean financial industry.
With the launch of the new program with a name that translates to "Hana Gold Trust Operation," the bank now offers a full lineup of gold trust products that cover storage, investment and disposal.
The launch follows Hana Bank's agreement in June with Korea Gold Exchange and the rollout of its "Hana Gold Trust Disposal" product, which allows customers to sell gold at more transparent prices. When selling gold at a jewelry shop, the price is usually set at the owner's discretion, but under "Hana Gold Trust Disposal," the price is based on the rate posted by Korea Gold Exchange.
Through the "Hana Gold Trust Operation," the bank aims to turn gold into a source of profit for customers while also improving the circulation of physical gold in the market, which could boost consumption and stimulate the economy.
Under the new product, customers can deposit their gold with Hana Bank and then get it back along with investment returns equivalent to 1.5 percent of the value appraised by the Korea Gold Exchange. The 1.5 percent rate is based on the annual interest rate before taxes and fees as of Monday.
Eligible deposits are limited to 24-karat gold, with a minimum weight of 100 grams (3.5 ounces). The product began pilot operations Monday at the bank's Seocho Finance Center and its Business 1 Department branch, and will expand to 26 branches - 25 in Seoul and the Haeundae Dongbaek branch in Busan - starting Aug. 18.
The "Hana Gold Trust Operation" could change perceptions about gold as an asset, a Hana Bank representative said.
"We expect this to be the starting point for recognizing that physical gold can also be an investable asset," the spokesperson said. "We will continue to release innovative products that offer a new paradigm in wealth management and solidify our position as a leading trust bank."
The price of 24-karat gold was approximately 3.8 millon won ($2,700) per ounce as of Jan. 1, and it stood at around 4.6 millon won per ounce as of Friday.