South Korea to launch 720 billion won National Participation Growth Fund

South Korea will launch the second round of the National Participation Growth Fund starting September 30. The fund aims to raise 600 billion won from the public, which, combined with 120 billion won in government subordinated financial support, will create a total pool of 720 billion won.

The fund targets investments in advanced strategic industries, including semiconductors, secondary batteries, artificial intelligence (AI), biotechnology, defense, and robotics. At least 60% of the funds must be allocated to these sectors, with over 30% directed toward unlisted companies and KOSDAQ technology-specialized listed companies through new capital supplies.

To increase accessibility for low-income earners, 50% of the total recruitment amount (300 billion won) is specifically allocated for the low-income segment during the first week. Investors with an annual labor income of 50 million won or less qualify. Notably, those who participated in the first round of the fund are ineligible to join this second round.

Participants using dedicated accounts can receive tax benefits, including income deductions of up to 18 million won and a 9.9% separate taxation rate on dividend income for up to five years. The fund has a five-year maturity and is a non-redeemable product, meaning early withdrawal is not permitted.