People's Participation Growth Fund Sells Out 600 Billion Won in a Week, Drawing 30,000 Investors

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[Financial News] The Financial Services Commission (FSC) said the entire 600 billion won fundraising target for the People's Participation Growth Fund sold out at 10 a.m. on the 29th, just one week after launch.
The total number of subscribers to the People's Participation Growth Fund reached 30,258. Of them, 11,677 signed up for the low-income allocation, which is open to people earning 50 million won or less a year. That accounted for 38.6% of the total. The low-income allocation was set at 120 billion won, or 20% of the 600 billion won total.
The average subscription amount per person was about 19.83 million won.
The People's Participation Growth Fund will be established on June 12, after the subscription period listed in the securities filing ends on June 11. Actual investments through each sub-fund will begin on June 15.
Investors in the People's Participation Growth Fund will be able to check the investment details of each sub-fund through the asset management reports, which are prepared and distributed every three months after the fund is established.
The fund has been a hit from the first day of launch, with online subscriptions selling out immediately, thanks to the government covering about 20% of potential losses with public funds and offering income tax deductions of up to 40%.
Starting this year, the People's Participation Growth Fund is expected to raise 600 billion won annually for five years, and the FSC is reviewing options such as bringing forward part of next year's allocation or supplying additional funds.
gogosing@fnnews.com Park So-hyun Reporter