KB Asset Management's 'KB Citizen Participation National Growth Fund No. 2' Available for Subscription Through Today

Diversified investment in key industries of the future, including AI, semiconductors and energy
Expanded subordinated contributions to mitigate investor losses

KB Asset Management said it is offering the "KB Citizen Participation National Growth Fund No. 2," which has been accepting subscriptions since September 30 with a cap of 200 billion won, on a first-come, first-served basis through October 15.

The KB Citizen Participation National Growth Fund No. 2 was designed to let individual investors diversify their investments in key industries of the future, such as artificial intelligence (AI), semiconductors, energy and biotechnology, which are difficult for them to invest in directly, in line with the government's National Growth Fund policy.

The government and managers of the private funds receiving the investments contribute capital on a subordinated basis, absorbing losses before ordinary investors. For each underlying private fund, subordinated investors absorb the first 18.8% to 23.3% of losses, easing the potential burden on ordinary investors.

Investments made through a dedicated account qualify for an income tax deduction of 10% to 40%, depending on the amount invested. Investors can claim deductions of up to 12 million won for an investment of 30 million won, 16 million won for 50 million won, and up to 18 million won for investments of 70 million won or more. Dividend income is subject to a 9.9% separate tax rate.

Eligible investors are residents of Korea aged 19 or older, or wage earners aged 15 or older. The investment limit is 100 million won per year and 200 million won in total over the next five years. However, anyone who was subject to comprehensive taxation on financial income even once between 2023 and 2025 is ineligible.

Investors in the first Citizen Participation National Growth Fund are also restricted from subscribing to the second fund through a dedicated account. However, they can subscribe through a general account if they use a different distributor. The combined subscription limit through general accounts for the 2026 Citizen Participation National Growth Fund is 30 million won.

Beom Gwangjin, head of the Pension Wealth Management Division at KB Asset Management, said, "The Citizen Participation National Growth Fund is a tax-saving product that allows investors to invest long-term in key industries of the future while benefiting from income tax deductions and separate taxation. With the expanded subordinated contributions strengthening the loss-mitigation structure, the fund could help people build long-term assets."

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