Samsung Asset Management Opens First-Come, First-Served Subscriptions for National Growth Fund No. 2 Through Oct. 15

Samsung Asset Management's "Samsung National Participation-Type National Growth Fund No. 2," which combines government financial support, a subordinated loss-protection structure, and tax benefits, has begun accepting subscriptions on a first-come, first-served basis amid growing expectations that it will sell out early.

On October 14, Samsung Asset Management announced that it would offer the Samsung National Participation-Type National Growth Fund No. 2, launched on September 30, on a first-come, first-served basis through October 15. Since the restrictions on "priority allocation for lower-income investors" were lifted on October 8, anyone aged 19 or older who resides in Korea, or anyone aged 15 or older with earned income, is now eligible to subscribe.

The Samsung National Participation-Type National Growth Fund was created to enable the public to take part in innovation in advanced industries. It is a publicly offered fund of funds that invests across 10 top-tier private equity funds specializing in unlisted companies in 12 advanced strategic industries, including artificial intelligence (AI), semiconductors, robotics, and biotechnology, as well as KOSDAQ companies listed under the technology-special listing track.

The fund's key feature is its "differential profit-and-loss allocation" structure, designed to enhance investment stability. Even if an individual private equity fund in which it invests incurs losses, government funds and subordinated contributions from private equity fund managers absorb losses first. As a result, they cushion losses for ordinary public investors up to approximately 18.8% to 23.3%. Investors should note, however, that the product does not guarantee the full principal.

Subscriptions through a dedicated account also come with tax benefits. Investors can claim an income tax deduction of 40% on investments of up to KRW 30 million, 20% on amounts over KRW 30 million and up to KRW 50 million, and 10% on amounts over KRW 50 million and up to KRW 70 million. The annual income tax deduction limit is as high as KRW 18 million. Investors who hold the fund to maturity for at least five years can also receive a separate 9.9% tax rate on dividend income. Subscriptions through a regular account, which does not offer tax benefits, are capped at KRW 30 million per year.

The fund is a closed-end product with a five-year maturity, and investors are expected to hold it until maturity. It will be listed within 90 days of its establishment, making it transferable through the exchange. However, transferring it within three years may result in the recapture of tax reductions, so it is advisable to invest funds that will not be needed in the medium to long term.

A Samsung Asset Management official said, "The Samsung National Participation-Type National Growth Fund offers income tax deductions and separate taxation, among other tax benefits, backed by a reliable safety net in which the government and private equity fund managers absorb a portion of losses first. Subscription volumes are being taken up quickly because investors can participate in the growth of Korea's strategic industries, which are at the heart of global technological competition, while also enjoying tangible tax benefits."

Investors can subscribe through branches and online channels of five securities firms - Samsung Securities, Shinhan Securities, Hana Securities, Woori Investment & Securities, and Meritz Securities - and four banks - Shinhan Bank, NH NongHyup Bank, Gwangju Bank, and BNK Kyongnam Bank.

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