The second edition of the National Growth Fund has launched, following the rapid sellout of the first fund tied to the government's drive to nurture advanced strategic industries. The new fund raises the ceiling on subordinated loss absorption by the government and private equity managers, strengthening the safety cushion for investors.
Samsung Asset Management, Mirae Asset Global Investments and KB Asset Management said on the 30th that they will jointly sell the "Public Participation National Growth Fund II (fund-of-private-funds type)," with each firm offering up to 200 billion won for a combined cap of 600 billion won. The second fund expands the "tiered loss and profit" cushion that shields retail investors from principal losses. If losses occur in the underlying individual private funds, government fiscal contributions and the private fund managers' own capital absorb them ahead of retail investors, who hold the senior position. The loss buffer at the underlying private fund level stands at 18.8% to 23.3%, up from 17.5% to 20.8% in the first fund, giving the structure greater capacity to absorb risk.
As with the first fund, this is a five-year closed-end product that spreads money across roughly 10 selected private equity and venture capital funds investing in promising unlisted companies and KOSDAQ technology-track listings across the country's 12 advanced strategic industries, including artificial intelligence, semiconductors, energy, biotechnology and robotics. Investors who actually put money into the first fund, however, are barred from opening a dedicated account for this second offering. They can instead subscribe through a general account, within a combined 30 million won limit for National Growth Funds in 2026. Anyone who was subject to comprehensive taxation on financial income in any of the three years before the launch, from 2023 to 2025, also cannot open a dedicated account.
Dedicated accounts allow contributions of up to 100 million won a year per person, or a maximum of 200 million won over five years. Income deductions apply at 40% on contributions of up to 30 million won, 20% on amounts between 30 million and 50 million won, and 10% on amounts between 50 million and 70 million won, for a maximum annual deduction of 18 million won. Investors who hold the fund for the full five years receive a separate 9.9% tax rate on dividend income. The fund will be listed on the exchange within 90 days of its establishment, allowing on-market trading, but investors who sell within three years of subscribing may have to repay the tax benefits they received, making the product suited to long-term idle funds.
Subscriptions run through October 15. Through October 7, half of the total offering is set aside for "low- and middle-income" investors with total annual salary of 50 million won or less or comprehensive income of 38 million won or less. Sales channels are split by manager and available both online and offline. The Samsung Asset Management fund is sold through four banks — Shinhan, Nonghyup, Gwangju and Kyongnam Bank — and five brokerages, including Samsung, Shinhan Investment, Hana, Woori Investment and Meritz Securities. The Mirae Asset product is offered through Woori, Hana and Busan Bank, along with Mirae Asset, NH Investment and Yuanta Securities Korea. The KB Asset Management fund is available at nine financial firms in total, including Kookmin, IBK and iM Bank, as well as KB, Korea Investment, Hanwha Investment, Daishin, iM and Kiwoom Securities.
