The South Korea Financial Services Commission plans to increase the share of the second Public Participation Growth Fund reserved for lower-income investors from 20% to 50%, expanding access for young people. In the first fund, investors aged 19 to 34 represented 12.4% of subscribers and 8.0% of invested funds, while about 61% of young subscribers met the lower-income criteria. The KRW 600 billion fund invests mainly in future growth industries, including through unlisted companies. It is a risk class 1 product with a five-year maturity, supported by a government-funded subordinated layer equal to 20% of public investment, income tax deductions of 10% to 40% of invested amounts and separate taxation of dividend income at 9.9%, including local income tax.
South Korea Financial Services Commission2026-08-11
South Korea Financial Services Commission plans to raise lower-income investor priority allocation to 50% in second public participation growth fund
The South Korea Financial Services Commission plans to raise the lower-income investor priority allocation in the second Public Participation Growth Fund from 20% to 50% to expand access for young people. Young investors accounted for 12.4% of subscribers and 8.0% of invested funds in the first fund, and about 61% of them met the lower-income criteria.