According to the financial sector on May 22, all allocated shares of the National Growth Fund were sold out at the five major banks: KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup. The total allocation for these banks was 220 billion won, with KB Kookmin receiving 65 billion won, Shinhan, Hana, and Woori each getting 45 billion won, and NH Nonghyup receiving 20 billion won.
Customers flocked to bank branches to sign up, with reports of 'open runs' occurring at some locations where customers waited before opening hours due to concerns about stock depletion.
Major securities firms, including Mirae Asset Securities, KB Securities, and Daishin Securities, also sold out their online allocations of the National Growth Fund.
A representative from a commercial bank stated, "Many investors seem attracted to the income deduction benefits and the government's priority loss absorption structure," adding, "Sales have occurred at a faster pace than expected."
The National Growth Fund will be available for a total of 600 billion won in a first-come, first-served basis until June 11. It combines 600 billion won from public funds and 120 billion won from the government to create a master fund, which will then invest in ten sub-funds. The investment limit is set at 100 million won per person annually, with a maximum of 200 million won over five years. The minimum investment amount varies by sales agent, ranging from 100,000 won to 1 million won.
Investors who maintain their investment in a dedicated account for three years can receive income deductions of up to 18 million won, depending on the investment amount. If held for more than five years, a 9% separate taxation applies to dividend income. In the event of losses in any sub-fund, the government will absorb up to 20% of the public investment using its subordinate financial contributions.
On the first day of the fund's launch, Financial Services Commission Chairman Lee Ok-won visited the NH Nonghyup Bank branch at the Government Seoul Complex to personally sign up for the National Growth Fund. He went through the same registration process as regular investors to assess convenience and address any on-site issues.
He stated, "This is an investment opportunity to share the fruits of growth in future strategic industries and a stepping stone to supply funds to advanced strategic industry companies." He also urged sales agents to prevent incomplete sales and assured that the government would monitor any inconveniences in the registration process in real-time.
However, investors should be cautious. The National Growth Fund is a high-risk investment product with no principal guarantee, and only those with a suitable investment profile based on risk assessment can subscribe. Additionally, it has a closed structure with a five-year maturity, making early redemption impossible.
* This article has been translated by AI.
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