The Financial Services Commission announced that sales of the second National Participation Growth Fund will begin on September 30 and run until October 15, 2026, for a total of 10 business days.
The target amount for the second fund is set at 600 billion won, the same as the first fund, and sales will end if the allocation is exhausted before the deadline.
Individuals who have previously subscribed to the first National Participation Growth Fund will be restricted from joining the second fund.
During the first five business days of sales, 300 billion won, or 50% of the total amount, will be allocated exclusively for low-income individuals. To enhance convenience for investors, the income verification process has been simplified using public MyData and scraping systems, unlike the first sales round.
From October 8 to 15, the remaining amount will be available for sale without restrictions on online sales for low-income individuals.
Subscriptions can be made online and at branches of 10 major banks and 14 securities firms. For customers subscribing in person, the online sales amount will be limited to a certain portion of the total amount during the first five business days (40% for banks and 60% for securities firms).
The subscription limit is set at 100 million won per year (200 million won over five years), with minimum subscription amounts varying by sales firm. The minimum subscription amount for the 10 banks is 1 million won, while 11 of the securities firms, excluding IM Securities, Yuanta Securities, and Hanwha Securities, also have a minimum of 1 million won. The excluded three firms have a minimum subscription amount of 100,000 won.
Subscribers can receive a tax deduction of up to 40% on their investment and a separate taxation benefit of 9.9% on dividend income (for up to five years).
To qualify for these tax benefits, investors must open a dedicated account for the National Participation Growth Fund. However, those with a history of comprehensive taxation on financial income in any one of the previous three years (2023-2025) will not be eligible for these benefits.
The National Participation Growth Fund is a non-redeemable fund with a five-year maturity. It is classified as a high-risk investment product (Grade 1) where the principal is not guaranteed, and investors must undergo a suitability assessment based on their investment profile to subscribe. However, the government will cover a portion of the losses (18.8% to 23.3%) from the national budget and the fund's seeding investment in the event of losses.
The invested amount will be allocated across 10 sub-funds managed by 10 asset management companies. Regardless of which fund investors choose, they will invest in the same portfolio, and in the event of losses, the overall return will be based on the combined performance of the 10 sub-funds.
* This article has been translated by AI.
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