This Children's Day and Parents' Day, Gifts Are Given as 'Stocks and Funds'

Financial Investment Products from KDB and Shinhan Securities Catch Attention in May Family Month
ELS Gift Certificates and Stock Gifticons Sold...Financial Education and Tax Benefits Included

[Asia Economy Reporter Park Jihwan] In celebration of May as the "Month of Family," financial investment products are gaining attention as gifts for children or parents. This includes gifting parents with vouchers that can be used to purchase stocks or various investment products, or enrolling children in children's funds to instill financial awareness from an early age.

According to the financial investment industry on the 6th, Korea Investment & Securities is selling financial product vouchers that can be used to invest in stocks, bonds, commercial papers, equity-linked securities (ELS), and more. Two types of vouchers, 50,000 KRW and 10,000 KRW, can be purchased on major open markets such as 11st, Gmarket, Auction, and G9. The usage is simple: by entering the voucher's serial number into the Korea Investment & Securities mobile app, the face value amount is credited to the financial product account. Within the credited amount, users can freely invest in various financial products and withdraw funds if desired.

Shinhan Financial Investment is also selling stock gifticons (Stockcons) that can be used to buy overseas stocks through KakaoTalk Gift. There are four types: Starbucks 4,100 KRW voucher, Netflix 12,000 KRW voucher, Apple 25,000 KRW voucher, and Tesla 30,000 KRW voucher, allowing investment in desired stocks up to the Stockcon amount. KB Securities has been selling coupons usable for purchasing domestic stocks via its Mobile Trading System (MTS) since the end of March.

Children's funds offer tax benefits and financial education advantages. Under current tax law, up to 20 million KRW can be gifted tax-free every 10 years to minor children under 18. If gifting is done immediately after the child's birth, up to 40 million KRW can be gifted tax-free until the child turns 20. Investment earnings are excluded from gift tax, allowing for both long-term investment and tax savings. Additionally, operation reports tailored to children's understanding are provided, naturally instilling financial awareness in children.

The returns are also favorable. According to financial information provider FnGuide, as of the 4th, the one-year return of 22 children's funds with assets under management exceeding 1 billion KRW was 62.6%. This significantly outperformed the domestic equity exchange-traded funds (ETFs) return of 51.7% and overseas equity funds return of 40.0% during the same period. Among individual funds, Korea Investment Value Asset Management's "10-Year Investment Children's Securities Investment Trust" posted the highest return at 78.1%. Following were NH-Amundi Asset Management's "I Love Savings Securities Investment Trust" (75.1%), KB Asset Management's "Apple Tree Securities Investment Trust" (70.4%), IBK Asset Management's "Children's Index Securities Investment Trust" (69.7%), and ShinYoung Asset Management's "Junior Economics Doctor Securities Investment Trust" (68.5%).