The South Korea Financial Services Commission has set the terms for the second Public Participation Growth Fund after the first fund sold out early in May. The KRW 600 billion offering will be sold on a first-come basis through 10 banks and 14 securities firms from September 30 to October 15 and may close early if fully subscribed. Investors in the first fund generally cannot participate. Public subscriptions will be combined with KRW 120 billion of subordinated government funding, creating KRW 720 billion for allocation across 10 selected subfund managers. At least 60% of each subfund must support companies in 12 advanced strategic industries and related businesses. At least 30% must provide new capital to unlisted companies and specially listed technology companies on KOSDAQ, while qualifying KOSPI investments are capped at 10%. The first-week allocation for lower-income investors will rise from 20% in the first fund to 50%, or KRW 300 billion, reflecting demand from lower-income and younger subscribers. Online sales will initially be capped at 40% for banks and 60% for securities firms, with both the allocation and channel restrictions removed in the second week. The fund has a five-year term with no early redemption, although units may be transferable after exchange listing, and eligible dedicated-account investors can receive an income deduction of up to KRW 18 million and separate taxation of dividend income at 9.9% for up to five years.
2026-09-08South Korea Financial Services Commission
South Korea Financial Services Commission sets September 30 launch of KRW 600 billion second Public Participation Growth Fund with 50% lower-income allocation
The South Korea Financial Services Commission will launch a KRW 600 billion second Public Participation Growth Fund on September 30 through 24 banks and securities firms. Half of the first-week offering will be reserved for lower-income investors, up from 20% in the first fund. The five-year fund will channel public and subordinated government money into advanced strategic industries through 10 selected subfund managers.