As concerns over inheritance disputes rise, demand for pre-arranged asset succession has led to a record high of over 8 trillion won in trust fund balances at the five major banks. This figure has nearly doubled in just one year. With an aging population increasing interest in posthumous asset management and the introduction of lower-threshold products, the customer base is expanding.
According to the financial sector on October 22, the combined trust fund balance of KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup banks reached 8.09 trillion won as of the end of September. This marks an increase of 3.94 trillion won (95.2%) from 4.14 trillion won in the same month last year. In the first nine months of this year alone, the balance has grown by 3.58 trillion won.
Trust funds allow clients to deposit money, securities, or real estate with financial institutions, establishing a contract for asset management and succession during their lifetime and transferring assets to designated beneficiaries after death. This arrangement serves as an alternative to leaving a will.
Initially perceived as a tool for high-net-worth individuals, trust funds are becoming more accessible. KB Kookmin Bank introduced a simplified trust fund last year with a minimum investment of 10 million won. Shinhan Bank has even launched a product with no minimum investment requirement. This shift allows seniors to prepare for posthumous asset transfer with relatively smaller amounts.
The rise in inheritance disputes is also driving interest in trust funds. According to the Supreme Court, the number of inheritance division cases filed last year reached a record 3,612. Cases involving amounts under 100 million won increased by 17.2%, from 2,604 in 2024 to 3,051 last year, indicating that inheritance conflicts are not limited to large estates.
The aging population further supports this demand. The National Data Agency reported on October 1 that the population aged 65 and older reached 11.125 million, accounting for 21.6% of the total population. This proportion is expected to exceed 30% by 2036 and 40% by 2050. As individuals seek to manage retirement funds while preparing for the transfer of remaining assets, demand for trust funds is likely to grow.
A financial sector representative noted, "With aging and the rise of single-person households, there is a clear trend toward preferring trust funds as a solution to asset management gaps. As younger seniors begin to prepare for inheritance while they are still healthy, demand is expected to increase further."
According to the financial sector on October 22, the combined trust fund balance of KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup banks reached 8.09 trillion won as of the end of September. This marks an increase of 3.94 trillion won (95.2%) from 4.14 trillion won in the same month last year. In the first nine months of this year alone, the balance has grown by 3.58 trillion won.
Trust funds allow clients to deposit money, securities, or real estate with financial institutions, establishing a contract for asset management and succession during their lifetime and transferring assets to designated beneficiaries after death. This arrangement serves as an alternative to leaving a will.
Initially perceived as a tool for high-net-worth individuals, trust funds are becoming more accessible. KB Kookmin Bank introduced a simplified trust fund last year with a minimum investment of 10 million won. Shinhan Bank has even launched a product with no minimum investment requirement. This shift allows seniors to prepare for posthumous asset transfer with relatively smaller amounts.
The rise in inheritance disputes is also driving interest in trust funds. According to the Supreme Court, the number of inheritance division cases filed last year reached a record 3,612. Cases involving amounts under 100 million won increased by 17.2%, from 2,604 in 2024 to 3,051 last year, indicating that inheritance conflicts are not limited to large estates.
The aging population further supports this demand. The National Data Agency reported on October 1 that the population aged 65 and older reached 11.125 million, accounting for 21.6% of the total population. This proportion is expected to exceed 30% by 2036 and 40% by 2050. As individuals seek to manage retirement funds while preparing for the transfer of remaining assets, demand for trust funds is likely to grow.
A financial sector representative noted, "With aging and the rise of single-person households, there is a clear trend toward preferring trust funds as a solution to asset management gaps. As younger seniors begin to prepare for inheritance while they are still healthy, demand is expected to increase further."
* This article has been translated by AI.
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