2nd National Participation Growth Fund concluded its sales without reaching its target amount. Unlike the first fund, which sold out quickly, the second fund raised only 86.6% of its target amid increased market volatility.
According to the Financial Services Commission on October 15, the second National Participation Growth Fund, sold over 10 business days from September 30 to today, totaled 519.8 billion won, falling short of the initial target of 600 billion won by 80.2 billion won. On the final day, sales amounted to 44 billion won.
The fund's sales coincided with a sharp decline in the domestic stock market. On the same day, the KOSPI index closed at 5,554.22, down 7.57% from the previous trading day. The KOSDAQ also fell 7.65% to close at 760.82. During trading, both markets experienced drops exceeding 8%, triggering a circuit breaker that temporarily halted trading.
It remains unclear whether the recent stock market decline directly impacted fund sales. However, there are concerns that increased market volatility may have dampened investors' appetite for riskier assets.
The sales process revealed discrepancies between banks and securities firms. Initially, the Financial Services Commission allocated 339 billion won to banks and 261 billion won to securities firms. However, due to underperformance in bank sales, a total of 146.9 billion won was reallocated to securities firms in two rounds. Some securities firms reportedly exhausted their allocated amounts early.
The first National Participation Growth Fund, launched in May, was completed within five business days due to favorable market conditions and investor interest. In contrast, the second fund extended its sales period to 10 business days but still failed to meet its target.
The Financial Services Commission stated that the second fund was designed as an additional option for investors who missed the opportunity to participate in the first fund, making it difficult to directly compare sales speed and results. Given that it is a high-risk investment product with restrictions on redemptions, the Commission emphasized the importance of investors making informed decisions. The Commission also clarified that there was no pressure on securities firms to accelerate sales, and adjustments to allocated amounts were made based on sales trends.
The National Participation Growth Fund is a policy-driven public fund that pools funds from the general public to invest in advanced strategic industries such as artificial intelligence (AI), semiconductors, and biotechnology. Meanwhile, the three main funds of the second National Participation Growth Fund are set to be established on October 16, with ten sub-funds expected to begin investing on October 19.
* This article has been translated by AI.
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