Hana Bank launches gold trust service

A promotional image of Hana Bank's gold trust product / Courtesy of Hana Bank

Hana Bank said Monday it has launched a gold trust product, allowing customers to safely store physical gold while generating returns through its management. It is the first of its kind in the domestic financial sector.

Under the program, customers can deposit gold with Hana Bank, which is then appraised by Korea Gold Exchange Digital Asset. With the customer's consent, the gold is subsequently managed.

At maturity, the customer receives both the gold and an annual management return equal to 1.5 percent of the appraised value (before tax and after service fees). The return can be taken in cash or in gold.

Enrollment requires a minimum of 100 grams of 24 karat pure gold. Pilot operations began Monday at Hana Bank's Seocho Financial Center in Seoul. Starting Aug. 18, the program will expand to 26 branches — 25 in Seoul and the Haeundae-Dongbaek branch in Busan.

With the latest launch, Hana Bank now offers a full suite of gold trust services covering storage, management and liquidation.

In June, Hana Bank signed an agreement with Korea Gold Exchange Digital Asset and introduced a gold liquidation trust product, enabling customers to sell physical gold at competitive prices.

The bank expects that expanding the supply of physical gold will improve market liquidity and contribute to revitalizing the real economy.

"This product is expected to change the perception that physical gold can also be a manageable asset," a Hana Bank official said. "We will continue to develop innovative products that set new paradigms in asset management and reinforce our leadership in trust services."