[DigitalToday reporter Ji-young Lee (이지영)] Hana Bank has introduced a trust product to support long-term asset management for grandchildren and children.

Hana Bank said on Tuesday it has launched a long-term asset management trust product for seniors planning lifetime gifts, called the "Naemamdaero Trust Family Love Type."

The "Naemamdaero Trust Family Love Type" is designed to allow a grandparent or others to be designated as the trust manager. Funds cannot be withdrawn or the trust terminated without the trust manager’s approval, helping prevent the trust assets from being used differently from the donor’s intentions.

The company said this can help manage assets so they are used for purposes set by the donor, such as university tuition or wedding funds.

It also allows advance gifting by using the gift tax deduction limit that applies on a 10-year cycle. After gifting within the deduction limit to a grandchild or child, assets can be managed through the trust account across various instruments, including deposits, equity-linked derivative bonds and exchange-traded funds.

A Hana Bank trust department official said, "The number of seniors who want mid- to long-term asset management for their grandchildren and children is increasing." The official added, "We will lead the market as a financial partner that connects generations, while keeping customer assets safe."