The South Korea Financial Services Commission has detailed the terms for the second Public Participation Growth Fund, following the early sellout of the first offering in May. The KRW 600 billion fund will be sold through 10 banks and 14 securities firms from September 30 to October 15, subject to earlier closure if fully subscribed. Investors who participated in the first fund cannot subscribe to the second offering. During the first five business days, KRW 300 billion, or 50% of the offering, will be reserved for lower-income investors, up from 20% in the first fund. Online sales will initially be capped at 40% of bank allocations and 60% of securities firm allocations to preserve access through branches. These restrictions will be removed for any remaining units from October 8. Income verification will also be simplified through public MyData and data scraping arrangements. Investors using a dedicated account may receive an income deduction of up to 40% of their investment and separate taxation of dividend income at 9.9% for up to five years. The fund is a high-risk, non-principal-protected product with a five-year closed term. Units may be transferred after exchange listing within 90 days of the fund’s establishment, but liquidity may be limited and transfers within three years trigger recovery of the associated tax relief.
2026-09-22South Korea Financial Services Commission
South Korea Financial Services Commission sets sales, eligibility and tax terms for KRW 600 billion second Public Participation Growth Fund
The South Korea Financial Services Commission has detailed the KRW 600 billion second Public Participation Growth Fund, which will be sold from September 30 through 10 banks and 14 securities firms. Half of the offering will initially be reserved for lower-income investors, while previous subscribers are excluded. The five-year, high-risk fund offers tax benefits through dedicated accounts but does not guarantee principal and may have limited secondary-market liquidity.