[비즈한국] The 'Public-Participatory National Growth Fund,' which invests in cutting-edge strategic industries such as AI, semiconductors, and bio, drew sensational popularity, selling out in many places on its very first day. With AI-related stocks driving the stock market, it is analyzed that the government's loss protection, income deductions, and tax benefits have attracted investors. While the sale period runs until June 11, it is expected to close early based on the current sales trend.
According to the Korea Financial Investment Association, 87.3% of the 600 billion KRW in total offerings for individual investors in the National Growth Fund, which began sales on May 22, was exhausted on the same day. The allotted shares for the top five commercial banks, including KB Kookmin Bank, sold out immediately after sales began, and the online (non-face-to-face) offerings at large securities firms also sold out within about an hour. Currently, about 12.7% (69.8 billion KRW) remains in the market.
Notably, it was found that nearly 40% of the first day's sales were by 'ordinary household' subscribers. The Financial Services Commission had allocated 20% of the total volume for this group, but the actual subscriptions significantly exceeded that figure, estimated at approximately 100 billion KRW.
The concentration of funds into the National Growth Fund can be explained by three factors. First, in the event of a fund loss, the government will use 120 billion KRW of its fiscal budget to absorb up to 20% of the loss, significantly lowering the risk of principal loss. Second, for investments held for 3 years or longer, investors can receive an income deduction of up to 40% annually, on a maximum of 18 million KRW. Third, a low separate taxation rate of 9.9% (including local taxes) is applied for 5 years, significantly easing the tax burden for those subject to comprehensive income taxation or high-income earners.
The Public-Participatory National Growth Fund is open to citizens aged 19 or older, or those aged 15 or older with earned income. The 'ordinary household' category is available to those with an annual earned income of 50 million KRW or less, or a comprehensive income of 38 million KRW or less. Fund investments must be made in a lump sum, and redemption is not possible for 5 years. If assets are transferred within 3 years, the tax benefits received may be clawed back. As this is a high-risk investment product (Class 1) without a principal guarantee, sign-up is only possible if the investor's suitability analysis results are 'suitable.' When signing up, an income verification certificate for opening an Individual Savings Account (ISA) must be submitted.
Although the official sales period lasts until June 11, it will close as soon as the quota is exhausted as it is on a first-come, first-served basis. However, 20% of the total 600 billion KRW (120 billion KRW) is separately classified for the ordinary household quota (for those with earned income under 50 million KRW) and is prioritized for sale until June 4.
Currently, all bank quotas have been exhausted. As of 5:00 PM on May 22, the remaining shares by distributor are as follows: Samsung Securities approximately 26.2 billion KRW; KB Securities approximately 9.7 billion KRW; Hanwha Investment & Securities approximately 8.3 billion KRW; Yuanta Securities approximately 7.8 billion KRW; Shinhan Securities approximately 6.0 billion KRW; Woori Securities (Woori Investment & Securities) approximately 4.7 billion KRW; Hi Investment & Securities approximately 4.9 billion KRW; iM Securities approximately 1.0 billion KRW; Meritz Securities approximately 0.7 billion KRW; NH Investment & Securities approximately 0.5 billion KRW.
Before signing up, it is recommended to check the remaining balance in advance through the Korea Financial Investment Association's 'Current Status of Remaining Shares by Financial Institution' pop-up page or each securities firm's mobile trading system (MTS).
The Public-Participatory National Growth Fund is planned to be created annually for 5 years with 600 billion KRW each year. Given the unexpectedly high response to this current offering, there is talk of the possibility of additional supplies in the second half of the year, such as bringing forward some of next year's quota.