Fund invests across AI, semiconductors, energy and biotech; dividend income taxed separately at 9.9 percent
KB Asset Management said it is accepting subscriptions on a first-come, first-served basis through Thursday for the "KB National Participation National Growth Fund No. 2," which has been open since Sept. 30 with a cap of 200 billion won ($149 million).
Investors who subscribe through a dedicated account are eligible for income deductions of 10 to 40 percent depending on the amount invested. Those who invest 30 million won qualify for a 12 million won deduction, a 50 million won investment yields a 16 million won deduction, and investments of 70 million won or more qualify for the maximum deduction of 18 million won. Dividend income is subject to a separate flat tax of 9.9 percent.
The fund was designed in line with the government's National Growth Fund policy to give retail investors diversified exposure to future key industries — including AI, semiconductors, energy and biotech — that are typically difficult to invest in directly.
A key structural feature is that the government and the managers of the underlying private equity funds contribute capital on a subordinated basis, absorbing losses ahead of general investors. Subordinated investors bear the first 18.8 to 23.3 percent of losses at the individual private equity fund level, reducing the loss burden on retail investors.
Eligibility is open to domestic residents aged 19 or older, or wage earners aged 15 or older. The annual investment limit is 100 million won, with a total cap of 200 million won over five years. However, anyone subject to comprehensive financial income taxation at any point between 2023 and 2025 is ineligible.
Investors who participated in the first National Growth Fund are barred from opening a dedicated account for the second fund, though they may subscribe through a general account at a different distributor. General account subscriptions are capped at a combined 30 million won across all 2026 National Participation National Growth Fund products.
"The National Participation National Growth Fund is a tax-efficient product that allows investors to make long-term investments in future key industries while benefiting from income deductions and a separate tax rate on dividends," said Beom Gwang-jin, head of KB Asset Management's pension and wealth management division. "By expanding subordinated capital contributions to strengthen the loss-mitigation structure, we believe the fund can help the public build long-term assets."
The fund is available for subscription online and in person through KB Kookmin Bank, Industrial Bank of Korea, iM Bank, KB Securities, Korea Investment & Securities, Hanwha Investment & Securities, Daishin Securities, iM Securities and Kiwoom Securities.
KB Asset Management has been accelerating its new product launches. The firm recently introduced the RISE Samsung SK Group ETF, which invests in major affiliates of Samsung Group and SK Group. The ETF targets the top 10 listed companies by floating market capitalization across the two groups, including Samsung Electronics and SK hynix, tracking the KAP Samsung SK Group Index. It holds a minimum of four stocks from each group, with individual stock weightings capped at 25 percent and the combined weighting of the top four holdings limited to 80 percent.
th5@heraldcorp.com
