National Growth Fund to Launch Second Round of 600 Billion Won Sales, Expanding Allocation for Ordinary Citizens to 50%

First-Come, First-Served Sales for 10 Business Days Starting September 30

First Round Subscribers Restricted from Second Round Subscription

Up to 18 Million Won Income Deduction and 9.9% Separate Taxation

The National Growth Fund, which sold out 600 billion won worth of products immediately after its launch in May and achieved notable success, is now preparing for its second round of sales.

Yonhap News Agency

On September 8, the Financial Services Commission announced that it would once again raise capital of 600 billion won from the general public, the same as the first round. In particular, for the second sale, the portion of the fund reserved for ordinary citizens will be expanded up to 50 percent of the total offering. However, if the allocation for ordinary citizens is not fully subscribed during the first week of sales, the remaining fund will be offered without distinction to both ordinary citizens and the general public.

The second round of the fund will be launched on September 30 and will be available on a first-come, first-served basis for two weeks (10 business days) until October 15. If all units are sold out before the end of the sales period, the sale may close early. Subscriptions can be made at 10 commercial banks and 14 securities companies, both at their branches and online.

Subscribers will be eligible for up to 18 million won in income deductions and a 9.9% separate tax rate on dividend income, applicable for a maximum of five years. However, to receive these tax benefits, subscribers must be at least 19 years old or at least 15 years old with earned income, and must enroll through a dedicated account used exclusively for investing in the National Participation Growth Fund. Those who were subject to the comprehensive financial income tax even once in any of the three years prior to the fund launch year are not eligible to open such a dedicated account.

The annual subscription limit is up to 100 million won, with a five-year maximum of 200 million won. The minimum subscription requirement can be set autonomously by each distributor, anywhere between 0 and 1 million won. Even if subscribers are not eligible for tax benefits, they may still invest through a general account, in which case the individual investment limit is 30 million won per year.

The National Participation Growth Fund is a five-year, closed-end fund with no redemptions allowed during the period. Additionally, if the fund is transferred within three years of investment, any previously reduced tax amount may be reclaimed, according to the Financial Services Commission.

Subscribers to the first fund round are not eligible to subscribe to the second round. However, if a dedicated account was opened but no actual investment was made in the first round, subscription to the second round is permitted. Even for those who invest in this year's second fund, subscription to next year's product is allowed. In order to subscribe, subscribers are required to submit supporting documents such as an income verification certificate for the ISA (Individual Savings Account) or proof of certificate issuance number.

The operational structure of the second fund is also identical to that of the first, utilizing a privately pooled fund of funds public offering format. Three public fund management companies—Mirae Asset, Samsung, and KB Asset Management—will pool 600 billion won from the general public, with an additional 120 billion won of subordinated government support funds, creating a total of 720 billion won in capital. This capital will then be invested into feeder fund managers that are in charge of actual investments and operations.

For the second round, as in the first, 10 asset management companies have been selected as feeder fund managers through a consortium recruitment process for 'National Participation-Type Funds.' The capital is distributed among all 10 feeder funds, and each feeder fund will operate its investments according to its own strategies.

The three public offering funds available to the public are structured to share the performance of all ten feeder funds. As a result, regardless of which of the three public funds a subscriber joins, their investment will be allocated to an identical portfolio, and the investment returns will also be the same.

In addition, the Financial Services Commission stated that it will allow each feeder fund manager to invest autonomously up to 40 percent of the total amount raised for each fund, leveraging the expertise of each manager to enhance the profitability and stability of the fund.

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