“Up to KRW 18 million in income tax deductions” ... KB Asset Management opens subscriptions for No. 2 National Growth Fund on a first-come, first-served basis

[Financial News] KB Asset Management is accepting subscriptions on a first-come, first-served basis for the KB Public Participation National Growth Fund No. 2, which offers income tax deductions of up to KRW 18 million. 
According to the financial investment industry on the 8th, KB Asset Management will offer the No. 2 National Growth Fund through the 15th, with a cap of KRW 200 billion. The fund is a product that invests across key future industries, including artificial intelligence (AI), semiconductors, energy and biotechnology.
Investors who subscribe through a dedicated account can claim income tax deductions of 10% to 40% of their investment, depending on the amount invested. The deduction is KRW 12 million for an investment of KRW 30 million, KRW 16 million for an investment of KRW 50 million, and up to KRW 18 million for an investment of KRW 70 million or more. Dividend income also qualifies for a 9.9% separate-taxation benefit.
Eligible investors are domestic residents aged 19 or older, or wage earners aged 15 or older. They may invest up to KRW 100 million per year for five years, with a maximum total investment of KRW 200 million. However, those who were subject to comprehensive taxation on financial income in 2023–2025 are not eligible.
Investors in the No. 1 fund cannot subscribe to the dedicated account for No. 2, but they may subscribe through a regular account with another distributor. The aggregate subscription limit for regular accounts across this year’s National Growth Funds is KRW 30 million. Starting today, ordinary investors can also subscribe, without priority allocation for low-income investors.
This fund has strengthened its subordinated investment structure to cushion losses for ordinary investors. The government and managers of the private equity funds in which it invests contribute on a subordinated basis, meaning they bear losses before ordinary investors. For each underlying private equity fund, subordinated contributions account for approximately 18.8% to 23.3%, a higher proportion than in No. 1.
Beom Gwang-jin, head of the Pension WM Division at KB Asset Management, said, “The public participation National Growth Fund is a tax-advantaged product that lets investors make long-term investments in key future industries while also receiving income tax deductions and separate-taxation benefits.” He added, “The No. 2 fund has strengthened its loss-mitigation structure by expanding subordinated contributions.”
The fund is available through nine distributors: KB Kookmin Bank, IBK Industrial Bank of Korea, iM Bank, KB Securities, Korea Investment & Securities, Hanwha Investment & Securities Co., Ltd., Daishin Securities, iM Securities and KIWOOM Securities Co., Ltd.
[email protected] Im Sang-hyeok Reporter