519.8 billion won sold, reaching 86.6% of target
Weak investor sentiment tied to domestic stock market slump
![A notice for the second round of the public participation growth fund is displayed at Woori Bank's headquarters in Jung-gu, Seoul. The fund was offered on a first-come, first-served basis from Sept. 30 to Thursday. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/10/15/rcv.YNA.20260930.PYH2026093004020001301_P1.jpg)
The second round of the public participation growth fund fell short of its 600 billion won ($448 million) sales target, a stark contrast to the first round launched in May, which sold out in just five business days.
The Financial Services Commission said Thursday that the second fund, launched Sept. 30, sold a total of 519.8 billion won over 10 business days — 86.6 percent of the 600 billion won target.
By sales channel, securities firms accounted for 334.5 billion won and banks for 170.3 billion won. Low-income investors made up 26.5 percent of all subscribers, with their share at banks and securities firms standing at 28.6 percent and 25.4 percent, respectively.
On the final day of sales Thursday, 44 billion won flowed in. Some securities firms — including Mirae Asset, Samsung, Korea Investment, Kiwoom, NH and KB Securities — exhausted their allocated quotas early.
The second fund's performance stands in sharp contrast to the first. The inaugural public participation growth fund, launched in May, sold out within five business days, buoyed by a strong stock market.
The recent downturn in domestic equity markets weighed on sales of the second fund. The Kosdaq fell more than 8 percent Thursday, sliding to the 760-point range, and has dropped more than 11 percent so far this month. The Kosdaq market is one of the primary investment targets under the fund.
The public participation growth fund is a policy-driven public offering that pools retail investors' money to invest in advanced strategic industries such as AI, semiconductors and biotech.
Investors are eligible for an income deduction of up to 40 percent of their investment and a separate dividend income tax rate of 9.9 percent. If losses occur, government fiscal resources and other subordinate parties absorb between 18.8 and 23.3 percent of the losses first. The fund is a closed-end vehicle with a five-year maturity, and early redemption is not permitted during that period.
The three parent funds of the second public participation growth fund are set to be established Friday. Full-scale investment through each of the 10 sub-funds is scheduled to begin Monday.
moon@heraldcorp.com
