[Asia Economy Reporter Kim Min-young] Hana Bank announced on the 24th that it has launched a long-term principal-protected equity-linked bond (ELB) product exclusively for retirement pensions.
The long-term principal-protected ELB is the first retirement pension product in the financial sector operated with a variable interest rate and maturities of 3 and 5 years.
Both corporate retirement pensions (defined benefit, defined contribution) and individual retirement pensions (IRP) customers can subscribe.
The bank explained that this product is operated with a CD rate (3-month variable) that has smaller fluctuations than market interest rates, offering higher interest rates compared to regular deposits. It also resolves the difficulty of management by enabling long-term operation instead of the 1-year maturity ELB that requires re-operation instructions at each maturity, thereby expanding the range of product choices.
Additionally, even if early termination occurs before maturity, a low early termination interest rate is applied, allowing differentiated high interest payments compared to existing ELBs and regular deposits, which is expected to be advantageous for customers in securing liquidity.
A Hana Bank official stated, “The long-term ELB, which improves management convenience, can stably operate a high-interest product compared to regular deposits for up to 5 years, and even in case of early termination, high interest payments are possible, thereby expanding customers' liquidity. We will continue to provide optimal products for the valuable management of customers' retirement pension assets.”
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