National Participation Growth Fund Sells Out, Set to Return in September with 50% Allocation for Ordinary Citizens

Second Round to Launch in September, Estimated at 600 Billion Won
Allocation for Ordinary Citizens May Rise from 20% to 50%
"Expanding Opportunities for Asset Building"

The government plans to launch the second round of the National Participation Growth Fund—a citizen participation-type fund that recently sold out—in September 2026, and will significantly expand the allocation for ordinary citizens to about half of the total amount available for sale.

According to financial authorities on June 2, the Financial Services Commission has confirmed the second round of the National Participation Growth Fund for the third quarter. They are currently discussing the scale of the offering, the volume to be allocated to ordinary citizens, and whether to select additional fund managers.

An official from the financial authorities stated, “In the first round of the National Participation Growth Fund, ordinary investors accounted for about 40% of all subscribers,” adding, “As the demand for asset building among ordinary citizens has been confirmed, we are considering increasing the allocation for citizens in the second round.”

The National Participation Growth Fund is a product designed to allow the public to directly participate in raising funds for the National Growth Fund, which is being created to foster high-tech strategic industries and is expected to exceed 150 trillion won.

The first round of the fund, launched on May 22, was created with a total of 600 billion won. Of this, 20%, or 120 billion won, was specially allocated to ordinary citizens with annual earned income of 50 million won or less (or 38 million won or less in comprehensive income for those with additional income sources). As it was initially expected that mainly middle-class or wealthy individuals would participate, financial authorities had planned to open any unclaimed portion for ordinary citizens to general investors after two weeks. However, the entire offering sold out within five business days of launch; in particular, ordinary investors accounted for 35% of the total sales and 38.6% of all subscribers, demonstrating a high participation rate.

As a result, financial authorities are considering increasing the allocation for ordinary citizens from the previous 20% to around 50% of the second round offering.

If the allocation for ordinary citizens is significantly expanded, it is expected that criticism over government fiscal support and tax benefits of the National Participation Growth Fund being concentrated among asset owners will be largely alleviated. The National Participation Growth Fund is structured so that if there is a loss in principal, the government will first cover about 20% of the loss through fiscal resources, and it also provides income tax deductions of up to 40%.

The size of the second round is expected to be similar to the first, at around 600 billion won. However, coordination between ministries on budget matters, due diligence on sub-fund managers, and additional selection procedures must first take place, meaning there may be some delay before the actual launch. The likely launch date is around September 2026.

Previously, on May 30, Financial Services Commission Vice Chairman Lee Eogwon appeared on the YouTube channel 'SampyoTV' and officially announced plans to launch the second round of the National Participation Growth Fund. Citing remarks made by President Lee Jaemyung, Vice Chairman Lee said, “As the stock market rises, the asset gap is widening, and the National Growth Fund is meaningful and important in that it creates a path of opportunity,” adding, “We are preparing for the second round and plan to launch it.”

The financial authorities plan to adjust the supply volume flexibly in response to future market demand. The original plan was to supply a total of 3 trillion won by providing 600 billion won each year for five years starting this year.

An official from the financial authorities explained, “The second round of the National Participation Growth Fund may be an additional supply for this year or could be an early allocation of next year’s volume, depending on market conditions. We will closely monitor market demand and adjust the total supply accordingly.”

This content was produced with the assistance of AI translation services.