Shinhan Asset Management completes fund manager selection for National Growth Fund, targeting 350 billion won in advanced industry investment

Shinhan Asset Management has wrapped up the selection of sub-fund managers for the challenge and small-cap leagues under the National Growth Fund's first 2026 policy fund investment round, commissioned by Korea Development Bank. With private matching capital included, the sub-funds are expected to total 350 billion won (about $232 million), and the supply of growth capital to advanced strategic industries — including AI, semiconductors and biotech — is set to begin in earnest.

Shinhan Asset Management announced the results Monday, jointly with Korea Development Bank.

The National Growth Fund is a government-led policy fund designed to channel a combined 150 trillion won over five years, drawing on the Advanced Strategic Industries Fund and private capital. It targets the development of 12 advanced strategic industries — among them AI, semiconductors, biotech, secondary batteries, next-generation vehicles and hydrogen — with roughly 30 trillion won slated for disbursement this year.

The indirect investment segment to which this round belongs routes government funds through private asset managers. The aim is to leverage the investment expertise of specialized managers to identify promising companies and direct growth capital across advanced strategic industries and small and midsize enterprises.

Shinhan Asset Management is serving as the delegated manager for both the challenge league and the small-cap league, which are designed to help emerging and smaller asset managers enter the market. The challenge league will be built around a 75 billion won anchor commitment from the mother fund, targeting a total of 150 billion won. The small-cap league will draw on a 100 billion won commitment to reach a total of 200 billion won. Including private matching capital, the two leagues are expected to form sub-funds totaling 350 billion won.

The first-round application period closed in April, drawing 81 asset managers across the policy fund program as a whole. Following evaluation, Samho Green Investment and Astone Ventures were selected for the challenge league, while Aju IB Investment and Paratus Investment were chosen for the small-cap league. The four managers plan to recruit private investors on the basis of the mother fund commitments and complete sub-fund formation by year-end.

The sub-funds will be required to allocate at least 40 percent of committed capital to advanced strategic industries and direct at least 60 percent of total fund assets to small and midsize enterprises. Those mandates are expected to expand the flow of growth capital to promising companies in national strategic sectors such as AI, semiconductors, biotech and secondary batteries.

"The challenge and small-cap leagues are a meaningful gateway for emerging and smaller asset managers with strong growth potential to enter the advanced strategic industry investment market," a Shinhan Asset Management official said. "As the delegated manager, we will conduct fair and professional oversight to broaden the base of the advanced industry ecosystem and ensure the policy goals of the National Growth Fund translate into tangible results on the ground."

As financial authorities ramp up disbursements from the National Growth Fund, analysts expect the benefits to ripple through to Kosdaq growth companies. Yeom Dong-chan, a researcher at Korea Investment & Securities, said the fund's rollout "is expected to give Kosdaq companies room to breathe," adding that technology-growth listed companies on Kosdaq and firms eligible for Kosdaq venture funds are likely to be the primary beneficiaries. He said companies that spend more than 30 percent of revenue on research and development or capital expenditure while still running operating losses would particularly stand to become key recipients of the policy capital.