Second National Participation Growth Fund Launches on the 30th... Half of 600 Billion Won Allocated to Lower-Income Investors

Allocation for Lower-Income Investors Increased from 20% to 50% in Second Round
Previous Subscribers Ineligible for Reapplication
Market Volatility Raises Uncertainty Over Popularity

The Financial Services Commission will launch the second round of the National Growth Fund for Citizen Participation (National Participation Growth Fund) worth 600 billion won on September 30, 2026. The allocation for lower-income individuals will be significantly increased to 300 billion won, representing 50% of the total amount.

Yonhap News Agency

According to the Financial Services Commission on September 22, 2026, the public subscription amount for the second National Participation Growth Fund is set at 600 billion won, the same as the first round. The fund will be available for sale for 10 business days from September 30 until October 15, and may close early if the entire amount is sold out during the subscription period.

The Financial Services Commission is introducing the second fund after the first round, launched in May 2026, sold out early, aiming to provide more investment opportunities to the public. However, given the recent increase in stock market volatility, it remains to be seen if the second round will be as successful as the first round.

For the second fund, 50% of the total subscription amount—300 billion won—will be reserved exclusively for lower-income individuals during the first five business days after sales begin. This is a significant increase from the 20% allocation for lower-income subscribers during the first round.

To offer participation opportunities to a broader pool of citizens, those who subscribed to the first National Participation Growth Fund are not allowed to subscribe to the second round.

The subscription process has also been simplified. Unlike the first round, income verification has been improved by utilizing public MyData and data scraping systems to make the process easier for applicants.

The fund can be subscribed both online and at bank or securities company branches. To ensure branch visitors also have a fair chance to participate, the quantity available for online sales will be limited to a certain proportion of the total during the first five business days. Banks will be able to sell up to 40% of the allotted online amount, while securities companies can sell up to 60% online.

From October 8 to October 15, any remaining shares will be offered without priority allocations for lower-income individuals or restrictions on online sales volumes.

The fund will be sold through 10 banks and 14 securities firms. The participating banks are KB Kookmin, IBK, NH Nonghyup, Shinhan, iM, Woori, Hana, Kyongnam, Gwangju, and Busan Bank. The securities companies are KB Securities, NH Investment & Securities, Daishin Securities, Meritz Securities, Mirae Asset Securities, Samsung Securities, Shinhan Investment Corp., iM Securities, Woori Investment & Securities, Yuanta Securities, Hana Securities, Korea Investment & Securities, Hanwha Investment & Securities, and Kiwoom Securities. Woori Investment & Securities and Kiwoom Securities will offer sales exclusively through online channels.

Investors will be eligible for income tax deductions of up to 40% of their investment and a separated dividend income tax rate of 9.9% for up to five years. To receive these tax benefits, investors must open a dedicated account for the National Participation Growth Fund and subscribe via this account.

However, investors who were subject to comprehensive financial income taxation in any of the preceding three years (2023–2025) will not be eligible for tax benefits. In this case, these investors may subscribe using general investment accounts instead of the dedicated account.

The subscription limit is 100 million won per year, with a cumulative cap of 200 million won over five years. The minimum subscription amount varies by distributor and is set at either 100,000 won or 1 million won.

The Financial Services Commission emphasized that investors should also pay attention to liquidity risks. The National Participation Growth Fund is a closed-end product with a five-year maturity, and the general principle is to hold the investment to maturity. However, to guarantee a minimum level of liquidity, the fund will be listed on the stock exchange within 90 days after its establishment and can be transferred thereafter.

A representative of the Financial Services Commission stated, "If the investment is transferred within three years after the initial investment, any tax benefits received will be clawed back. Even after listing on the stock exchange, liquidity may be low, so the product is best suited for investors who can hold it until maturity."

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