Second Public Participation Growth Fund sells 316.2 billion won in four days, reaching 52.7% of target

[Financial News] The second public-participation National Growth Fund (Public Participation Growth Fund) surpassed half of its target just four days after sales began. Financial authorities, reflecting strong demand for online subscriptions, allowed the online sales share to be increased voluntarily. They also said the first fund was holding up well, posting a positive return through institutional safeguards despite a falling market.

According to the Financial Services Commission on the 6th, a cumulative 316.2 billion won worth of the second Public Participation Growth Fund had been sold over the four days from September 30 through 5 p.m. that day. This amounts to 52.7% of the 600 billion won overall target.
The remaining general-allocation amount across sales firms totaled 283.43 billion won: 205.91 billion won at banks (100.86 billion won offline and 105.05 billion won online) and 77.52 billion won at securities firms (24.78 billion won offline and 52.75 billion won online). For the priority allocation for ordinary citizens, which accounts for 50% of total sales, 129.17 billion won remained at banks and 64.92 billion won at securities firms.
As a phased measure before restrictions on subscription limits for online and offline channels are fully lifted on the 8th, financial authorities allowed financial firms to voluntarily increase their online sales share starting that day. Banks can raise the online allocation from 40% to 60%, while securities firms can increase it from 60% to 80%. However, the limit on the priority allocation for ordinary citizens will remain in place through the 7th, as planned.

Meanwhile, the Financial Services Commission also actively addressed concerns from some quarters that the first Public Participation Growth Fund’s current return was relatively low.
The first fund, established on June 12, had returned 1.40% as of the 6th. This was a favorable result compared with the sharp declines in the KOSPI and KOSDAQ, whose returns over the same period were -14.55% and -10.60%, respectively.
The Financial Services Commission explained, “The fund primarily invests in advanced strategic industries, including unlisted companies, and is a product that distributes actual returns based on returns at its five-year maturity. Therefore, returns at this early stage of the fund’s formation are not very meaningful.”
It also said, “The fact that the fund is maintaining a positive return at present despite sharp volatility in listed stock markets and a downturn shows that institutional safeguards put in place to ease the public’s long-term investment burden—including subordinated backing from public funding and fund managers’ seed investments—are having some effect.”
[email protected] Park Ji-hyun Reporter