Diversified investment across 12 advanced strategic industries including AI, semiconductors and biotech

Income deduction of up to 18 million won; dividend income taxed separately at 9.9%

Samsung Asset Management is selling its Samsung National Growth Fund 2 on a first-come, first-served basis through Thursday. [Samsung Asset Management]
Samsung Asset Management is selling its Samsung National Growth Fund 2 on a first-come, first-served basis through Thursday. [Samsung Asset Management]

Samsung Asset Management announced Wednesday it will sell its Samsung National Growth Fund 2 on a first-come, first-served basis through Thursday.

Launched on Sept. 30, the fund is a publicly offered fund of private equity funds that invests in South Korea's 12 designated advanced strategic industries, including AI, semiconductors, robots, biotech and secondary batteries. It spreads investments across 10 specialized private equity funds targeting unlisted companies in those industries as well as Kosdaq-listed firms that gained listing through the technology special-listing track.

Since Thursday, the priority allocation restriction for low-income investors has been lifted, opening the fund to any resident aged 19 or older and any worker aged 15 or older.

According to the Financial Services Commission, total sales of the second National Growth Fund stood at 452.5 billion won ($338 million) as of Tuesday, representing 75.4 percent of the 600 billion won fundraising target over eight business days since launch. The remaining available amount is 147.5 billion won.

The fund uses a loss-tiered structure in which the government and private equity fund managers contribute as subordinate investors. If losses occur within the underlying private equity funds, the subordinate capital from the government and fund managers absorbs them first, buffering general investors against losses of approximately 18.8 to 23.3 percent. The product does not, however, guarantee the return of principal.

The fund also offers tax benefits. Investors who meet the dedicated account requirements can claim income deductions at a rate of 40 percent on investments up to 30 million won, 20 percent on the portion between 30 million won and 50 million won, and 10 percent on the portion between 50 million won and 70 million won, for a maximum income deduction of 18 million won. Investors who hold the fund to maturity of five years or more are also eligible for a separate tax rate of 9.9 percent on dividend income. Those using a standard account without tax benefits may invest up to 30 million won per year.

The fund has a five-year maturity and is designed to be held to term. It will be listed on an exchange within 90 days of establishment, allowing trading, but investors who transfer their holdings within three years of purchase will face a clawback of tax benefits received.

"This product combines a structure in which the government and private equity managers absorb a portion of losses first with income deduction and separate taxation benefits," a Samsung Asset Management official said. "Investors can participate in the growth of South Korea's strategic industries while enjoying meaningful tax savings, which is why available units are selling out quickly."


hajun825@heraldcorp.com