Sales of the second public participation national growth fund reached 214 billion won on the 30th, the first day of its offering.
The Financial Services Commission said on the 30th that 214 billion won of the 600 billion won fund had been sold, equal to 35.7% of the total offering.
That marks a cooler start than the first fund, which sold 87% of its total on the opening day. The shift appears to reflect the exclusion of investors who bought into the first fund and a larger share set aside for low- and middle-income households. The commission allocated 50% of the offering, or 300 billion won, exclusively to low- and middle-income buyers for the first five business days. Online sales were also capped at 40% for banks and 60% for securities firms.
Three brokerages — KB Securities, NH Investment & Securities and Mirae Asset Securities — exhausted their online sales quotas that day. Only offline sales are available at these three brokerages through Oct. 7, when the exclusive low- and middle-income window ends; general sales continue through Oct. 15.
Ten banks have a combined 266.29 billion won remaining, while 14 securities firms have 119.71 billion won left. Of that, 229.12 billion won is still set aside for low- and middle-income buyers.
The second fund will be sold at banks and brokerages on a first-come, first-served basis through Oct. 15. Investors in the fund receive an income deduction of up to 40% of their investment and separate taxation on dividend income at 9.9%. If losses occur, subordinated government funds and other backers absorb the first 18.8% to 23.3% of the shortfall.
