Business · Markets · 2 hrs ago
Second public growth fund raises 5,198 billion won, below target
South Korea’s second public participation growth fund raised 5.198 trillion won, below its 6 trillion won target.
It sold over 10 business days after launching on September 30.
The fund gathers money from the public to invest in advanced industries including AI, semiconductors and biotechnology.
Investors can claim an income-tax deduction of up to 40% of their investment and receive separate tax treatment on dividend income.
The government also takes the first share of some losses, covering 18.8% to 23.3% under the fund’s structure.
Demand was weaker than for the first fund, as a slumping domestic market weakened investor confidence; the KOSDAQ index fell more than 8% on the final day.
The fund’s three main investment pools are to be set up on October 16, with 10 smaller funds expected to begin investing on October 19.
South Korea’s second public growth fund raised 5,198 billion won over 10 business days, reaching 86.6% of its 6,000 billion won target.
Sales ran through banks and securities firms, with securities firms accounting for 3,345 billion won and banks for 1,703 billion won.
The fund invests in advanced strategic industries, including artificial intelligence, semiconductors and biotechnology.
The article cites weaker investor sentiment amid a sluggish domestic stock market as a main reason for the shortfall.
Despite tax benefits and partial loss coverage by government finances, the fund’s sales did not match its first release’s momentum.
- Who
- The second public participation growth fund and its investors.
- What
- It raised 5,198 billion won, below its 6,000 billion won target.
- When
- It launched on September 30 and sold for 10 business days; the report was published October 16, 2026.
- Where
- South Korea, through bank and securities-firm sales channels.
- Why
- The article cites weaker investor sentiment amid a sluggish domestic stock market and a sharp fall in the KOSDAQ.
This story does not have two clearly opposing sides.
The second fund launched, and Financial Services Commission Vice Chairman Kwon Dae-young joined it at an NH NongHyup Bank branch in Seoul.
The fund sold 5,198 billion won, or 86.6% of its 6,000 billion won target.
The Financial Services Commission reported the sales total; the KOSDAQ fell more than 8% and dropped below the 760 level.
The fund’s three parent funds were scheduled to be established.
Investments through the 10 sub-funds were scheduled to begin.
- Total sales
- 5,198 billion won
- Target
- 6,000 billion won
- Target reached
- 86.6%
- Securities-firm sales
- 3,345 billion won
- Bank sales
- 1,703 billion won
- Investor tax benefit
- Income deductions of up to 40% of the investment