KB Asset Management Opens First-Come, First-Served Sales of "National Growth Fund No. 2"

KB Asset Management has begun accepting applications on a first-come, first-served basis from retail investors for its No. 2 National Growth Fund, which offers a government-backed loss-mitigation structure and tax benefits.

On October 8, KB Asset Management announced that it would accept applications on a first-come, first-served basis through October 15 for the "KB Public Participation National Growth Fund No. 2," which invests in key industries of the future, including artificial intelligence (AI), semiconductors, energy and biotechnology. Starting today, all citizens can subscribe freely, without priority allocation for retail investors with lower incomes.

Eligible subscribers are domestic residents aged 19 or older, or wage earners aged 15 or older. They may invest up to KRW 100 million per year and KRW 200 million in total over five years. However, anyone who was subject to comprehensive taxation on financial income at least once between 2023 and 2025 is ineligible. Investors in the first Public Participation National Growth Fund are also restricted from opening an account dedicated to the second fund. They may, however, subscribe through a general account at another distributor. The general-account investment limit is a combined KRW 30 million for the 2026 Public Participation National Growth Fund offerings.

Subscribers through a dedicated account can receive an income deduction of up to 40% of their investment (with a maximum deduction of KRW 18 million for investments of at least KRW 70 million), as well as a 9.9% reduced rate of separate taxation on dividend income.

The product has a structure in which the government and managers of the underlying private equity funds make subordinated investments and absorb losses first. For each individual investee private equity fund, subordinated investors bear the first losses of approximately 18.8% to 23.3% of the investment. The scope of subordinated contributions has been expanded compared with the first fund.

Beom Gwangjin, head of the Pension WM Division at KB Asset Management, said, "The Public Participation National Growth Fund is a tax-advantaged product that allows investors to invest long term in key industries of the future while benefiting from income deductions and separate taxation. The second fund has strengthened its loss-mitigation structure by expanding subordinated contributions, which could help people build long-term assets."

Investors can subscribe through online and offline channels at KB Kookmin Bank, Industrial Bank of Korea (IBK), iM Bank, KB Securities, Korea Investment & Securities, Hanwha Investment & Securities, Daishin Securities, iM Securities and Kiwoom Securities.

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