The South Korea Financial Services Commission has begun sales of the second KRW 600 billion Public Participation Growth Fund, bringing forward the follow-on offering after about 87% of the first fund sold on its opening day in May. During an inspection of the subscription process, FSC Deputy Chairman Kwon Dae-young directed distributors to explain the product’s five-year lockup, lack of principal protection and investment risks fully to prevent mis-selling. Previous subscribers are excluded to broaden access, while 50% of the offering is reserved for eligible lower-income investors during the first five business days, up from the first fund’s 20% target. Income documents can generally be verified electronically through public MyData and related systems. The fund offers an income tax deduction of up to 40% and separate taxation of dividend income at 9.9%, while government funding and managers’ seed investments absorb part of each subfund’s losses before public investors. Sales run through 10 banks and 14 securities firms until the allocation is exhausted or the scheduled offering closes.
South Korea Financial Services Commission begins sales of KRW 600 billion second Public Participation Growth Fund and warns against mis-selling
The South Korea Financial Services Commission has opened sales of the second KRW 600 billion Public Participation Growth Fund, with half initially reserved for lower-income investors and previous subscribers excluded. Deputy Chairman Kwon Dae-young told distributors to explain that the tax-advantaged fund has a five-year lockup, does not protect principal and carries investment risk.