EasyTicket Every finance-related KakaoTalk chat room these days seems to be buzzing about the National Growth Fund, right? Easyticket went straight to primary sources to check everything from the launch details to tax benefits and hidden risks.
TL;DR — The Public Participation National Growth Fund, launched on May 22, 2026, is a closed-end product with a 5-year term. Invest for 3+ years and you get up to a 40% income tax deduction and 9.9% separate taxation, and if there’s a loss, the government covers up to 20% first. The catch: your money is locked up for 5 years.
📌 What Is the National Growth Fund? The Core Concept
The National Growth Fund is a policy fund that invests a total of 150 trillion won over 5 years in advanced industries like AI, semiconductors, and biotech. The government puts up seed money to draw in private capital, with the goal of growing Korea’s future industries.
The part that ordinary citizens can participate in directly is the “Public Participation National Growth Fund.” It’s made up of 600 billion won raised from the public plus 120 billion won in government funds, for a total of 720 billion won (source: Financial Services Commission).
Why Is It Getting Attention Right Now?
- A structure where the government takes on part of any loss first
- Stronger tax benefits than an ordinary public offering fund
- Investment scope extends even to unlisted advanced-industry companies
💰 Eligibility and Limits at a Glance
| Item | Details |
|---|---|
| Launch date | May 22, 2026 |
| Sales period | May 22 – June 11 (3 weeks, first-come, first-served) |
| Eligibility | Age 19+, or wage earners age 15+ |
| Excluded | Anyone subject to comprehensive taxation on financial income in the past 3 years |
| Per-person limit | 100 million won/year, 200 million won total over 5 years |
| Term | 5 years (redemption-restricted, no early termination) |
Out of the total 720 billion won, 50% of the online allocation was set aside for the first week. If you’re interested, it pays to move fast.
Where Can You Sign Up?
You can sign up through a dedicated account at 10 banks and 15 securities firms.
- Banks: KB Kookmin · Shinhan · Hana · Woori · NH Nonghyup · IBK · BNK Busan · BNK Kyongnam · Kwangju · iM Bank
- Securities firms: Mirae Asset · Samsung · KB · Korea Investment & Securities · NH Investment & Securities · Shinhan Investment · Kiwoom · Hanwha Investment & Securities · Meritz · Daishin · Hana · Woori Investment & Securities · Yuanta · Shinyoung · iM Securities
🎯 Tax Benefits — The Real Highlight
The National Growth Fund’s biggest draw is tax benefits you won’t easily find in an ordinary fund.
- Income tax deduction: Hold for 3+ years and get up to 40% of your investment amount deducted, capped at 18 million won
- Dividend income separate taxation: 9.9% (including local tax) for 5 years — lower than the standard 15.4%
- Excluded from comprehensive financial income taxation: Calculated separately from your other financial income
For example, if you invest 20 million won and hold it for 3+ years, you could get up to an 8 million won income tax deduction. The higher your annual income, the bigger the tax savings.
⚠️ Precautions and Risks — Must-Knows
So you don’t end up regretting a snap decision made on tax benefits alone, you need to look at the downsides too.
Your Money Is Locked Up for 5 Years
This fund is redemption-restricted, so early termination isn’t possible. You can sell through an exchange listing, but if trading volume is low, there’s a risk of selling below the reference price (source: The Korea Economic Daily).
20% Loss Coverage — Anything Beyond That Is on You
The government participates as a subordinated investor and absorbs up to 20% of each sub-fund’s losses first. But if losses exceed that, ordinary investors take losses too. This is not a principal-protected product.
Heavy Weighting in Unlisted and Tech-Track-Listed Companies
The fund is heavily weighted toward unlisted AI, semiconductor, and biotech companies, so volatility tends to be high. If you’re a conservative investor, double-check whether this actually fits your risk tolerance.
If you’ve been subject to comprehensive taxation on financial income even once (within the past 3 years), you cannot open a dedicated account at all. Be sure to check your own tax history before signing up.
🔍 Checklist Before You Sign Up
Check the items below before you decide to sign up.
- Confirm this is spare money you’re okay locking up for the next 5 years
- Check whether you’ve been subject to comprehensive taxation on financial income in the past 3 years
- Get your ISA income verification certificate issued in advance via Hometax (National Tax Service)
- Assess your own risk tolerance (can you handle exposure to unlisted companies?)
- Compare limits with other tax-saving products (ISA, pension savings, IRP)
- Check the procedure for opening a dedicated account at your bank or securities firm
💡 Who Is This a Good Fit For?
| Good Fit | Not a Good Fit |
|---|---|
| High earners who benefit more from tax savings | Anyone who’ll need the money within 3 years |
| Those who can invest long-term, 5+ years | Those who prefer principal-protected products |
| Those who want to bet on advanced-industry growth | Those subject to comprehensive financial income taxation |
| Using it as one piece of a diversified portfolio | Those focused on short-term trading |
From Easyticket’s perspective, this fund is appealing if you’re diversifying a portion of your long-term spare funds into it. That said, it’s not a product to put all your assets into. Decide how much of your portfolio to allocate carefully, within the context of your own overall asset mix.
📋 Frequently Asked Questions (FAQ)
Q. What happens once the sign-up limit is reached?
Since it’s sold first-come, first-served, sign-ups close once the limit is used up. The 50% allocated for online sign-ups in the first week could fill up fast.
Q. What if I need the money before it matures?
Redemption isn’t possible, but you can sell after it’s listed on the exchange. However, trading volume and price will vary depending on market conditions.
Q. Do I get the income tax deduction every year?
It only applies once you meet the 3-year-plus holding requirement. If you don’t meet that requirement, any deduction you already received could be clawed back, so be careful.
Q. Is the 20% loss coverage unconditional?
The government covers losses first, within a 20% range per sub-fund. If the loss exceeds 20%, everything beyond that falls to ordinary investors.
That’s the essentials, quickly covered. The tax benefits are certainly appealing, but make sure you weigh both sides — the 5-year lock-up and the volatility — before deciding. Judge carefully based on your own financial plans and risk tolerance. 💪