Hana Bank, "Gift to Your Grandchildren"... Launches Pre-Gift Trust

On the 3rd, the headquarters of Hana Bank in Jung-gu, Seoul, displayed the brand name "Hana Bank" without "KEB." Hana Bank announced that from this day forward, the brand name will change from KEB Hana Bank to "Hana Bank," marking a fresh start as the new Hana Bank preparing for the next decade. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Min-young] Hana Bank announced on the 29th that it has launched a 'Pre-Gift Trust' product.

The bank explained that the product was launched to support legal gifting to children and grandchildren in line with changes in social structure and financial environment, while simultaneously allowing customers to achieve both tax savings and investment returns.

It added that parents who have experience or plans to open savings accounts or funds in the name of their young children to prepare for their children's tuition or wedding expenses, or to pass on when the children become adults, are all candidates who need pre-gifting.

If funds for which gift tax has not been reported or paid are later used for the acquisition of assets by the children, and the source of the funds cannot be clearly explained, gift tax will be imposed on the total amount including the principal paid by the parents. Therefore, all parents who worry about their children's future regardless of economic status can be considered potential donors.

According to a bank official, this pre-gift trust allows the use of the maximum gift tax exemption limit to gift money, enjoy tax benefits on investment returns generated from long-term investments after subscribing to the trust, and helps form the child's asset base through tax consultations related to gifting at the time of product subscription.

The investment products for the pre-gift trust include asset allocation-type products that diversify investments using Exchange-Traded Funds (ETFs) across indices, bonds, gold, and alternative assets. Equipped with 'Quantech's' risk management technology, it is designed to focus on stability compared to other asset allocation products, making it suitable for long-term investment. Quantech is a company holding the largest number of algorithms in the Robo-Advisor Testbed hosted by the Financial Services Commission, expanding collaborations with the financial sector, and plans to broaden the scope of management so that customers can directly instruct the management of gold bullion, ETFs, and more in the future.