National Participation Growth Fund launches second 600 billion won round

The second round of the National Participation Growth Fund has launched in South Korea, aiming to raise 600 billion won to support advanced strategic industries. On the first day of sales, approximately 214 billion won (35.7%) was sold through 10 banks and 14 securities firms. While some major securities firms saw their online sales limits exhausted immediately, overall market enthusiasm was lower than the first round, which saw nearly 90% sold on its first day.

This second iteration includes several structural changes: 50% of the total amount (300 billion won) is prioritized for low-income citizens during the first five business days, and participants from the first round are excluded from joining. To encourage participation, the fund offers tax benefits of up to a 40% income deduction and a 9.9% separate taxation rate on dividend income.

Financial authorities have emphasized investor protection, noting that the fund is a high-risk product that does not guarantee principal. To mitigate risk, the government will bear approximately 18.8% to 23.3% of any potential losses. The sale period is scheduled to run for 10 business days, ending October 15, or until the funds are fully subscribed.