South Korea’s Public Participation Growth Fund is expected to be launched and sold around June. The Financial Services Commission said it held its first task force meeting on Tuesday to discuss the fund’s product structure and management plan.
The policy fund is designed to let ordinary investors make long-term investments in advanced strategic industries through a publicly offered fund.
The public fund will spread money across multiple sub-funds managed by private investment professionals. Key targets are expected to include companies tied to advanced strategic industries such as semiconductors and secondary batteries, as well as related infrastructure firms. The goal is to raise 600 billion won a year, totaling 3 trillion won over five years.
Participants agreed the tax benefits are more generous than those offered by existing policy funds, including an income deduction of up to 40% depending on the investment amount and a separate 9% tax rate on dividend income. They also said product design should balance the policy goal of long-term investment in advanced strategic industries with fund returns.
The task force plans further talks on the main investment targets and allocation ratios, incentives and performance reviews to encourage managers to run the fund in line with its purpose, and criteria for selecting sub-fund managers.
The commission said it plans to finalize and announce the product structure in March, then select managers for the public fund and sub-funds before launching the product for retail investors around June.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.