The second National Participation Growth Fund, which focuses on investments in advanced industries such as semiconductors, secondary batteries, artificial intelligence (AI), and future vehicles, will be available for public purchase from September 30 for two weeks. The total amount to be raised is 600 billion won, with 50% of the initial week's allocation reserved for low-income individuals.
The Financial Commission announced on September 8 that the same ten asset management firms selected for the first fund will manage the second fund.
The funds will be distributed across ten sub-funds, including two large-sized funds (1.2 billion won each), four medium-sized funds (800 million won each), and four small-sized funds (400 million won each).
The large fund managers are DS Asset Management and Korea Investment Value Asset Management. The medium-sized fund managers include Brain Asset Management, KB Asset Management, Quad Asset Management, and Truston Asset Management. The small fund managers are DB Asset Management, NH Hedge Asset Management, Taurus Asset Management, and Hana Asset Management.
Investors in the public offering fund (three funds) will share the operating profits of the ten sub-funds, ensuring that all products invest in the same portfolio, resulting in identical returns.
The primary investment targets for the National Participation Growth Fund include companies in advanced strategic industries such as semiconductors, secondary batteries, hydrogen, future vehicles, defense, and AI, mirroring the investment targets of the first fund. The fundraising goal remains the same at 600 billion won.
The product will officially launch on September 30 and will be sold on a first-come, first-served basis until October 15. It will be available through ten commercial banks and fourteen securities firms, with sales occurring both in branches and online.
The government offers tax deductions of up to 18 million won on investments and a separate taxation benefit of 9.9% on dividend income for up to five years. To qualify for these tax benefits, individuals must be at least 19 years old or 15 years old with earned income and must subscribe through a dedicated account for the National Participation Growth Fund. However, individuals classified as comprehensive income taxpayers in any of the three years prior to the fund's launch (2023-2025) are ineligible to open a dedicated account.
The maximum investment limit for the dedicated account is 100 million won per year (up to 200 million won over five years), while the minimum limit is set between 0 and 1 million won at the discretion of the sales firms. The annual investment limit per person is 30 million won.
This second fund significantly increases the allocation for low-income individuals to 50% of the total sales. However, if the allocation for low-income individuals is not fully utilized in the first week, sales will open to the general public in the second week. The sales method will also limit online sales to 40% through banks and 60% through securities firms in the first week.
The fund will not allow early redemption for five years, and the fees and commissions will be approximately 1.2% annually (about 1.0% for online subscriptions).
* This article has been translated by AI.
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