Korea Growth Finance Investment Management received applications from 33 asset management companies for the second round of the National Participation Growth Fund trustee recruitment, which closed on the 20th, according to the company on the 22nd. This represents an increase of 9 companies compared to the 24 that applied for the first round launched in May. The surge follows the first round's success, which sold out on the first day of sales, prompting the government and master fund managers to accelerate the second round timeline. The fund's structure, where the government absorbs approximately 20% of losses first, combined with income tax deduction benefits, has driven strong investor demand.
Application Volume Exceeds First Round by 9 Companies
The 33 companies that submitted applications for the second round represent a 37.5% increase from the 24 applicants in the first round. Korea Growth Finance Investment Management confirmed the application count following the deadline on the 20th. The first round of the National Growth Fund achieved immediate market success when allocated quantities sold out through online channels on the first day of sales in May.
Government Loss-Sharing and Tax Benefits Drive Demand
The National Participation Growth Fund employs a differentiated profit-and-loss structure where the government bears approximately 20% of losses first. Investors also receive income tax deduction benefits. Industry sources attribute the increased participation in the second round to asset managers who were unable to join the first round due to tight preparation timelines and uncertainty about the product's market reception.
August Selection and September Launch Confirmed
The second round of the National Participation Growth Fund will finalize trustee asset manager selection in August, with the product launch scheduled for September. The accelerated timeline reflects the government and master fund operators' response to the rapid depletion of first-round allocations. Market expectations for the second round remain strong despite recent investor sentiment contraction centered on the KOSDAQ market.
Complete List of 33 Applicant Asset Managers
The applicant companies in alphabetical order (Korean): DB Asset Management, DS Asset Management, Renaissance Asset Management, Midas Asset Management, Mirae Asset Management, Value System Asset Management, Brain Asset Management, BNK Asset Management, Saramsatjeom Young Asset Management, Shinhan Asset Management, C-Square Asset Management, Arc Impact Asset Management, Anda H Asset Management, SP Asset Management, A1 Asset Management, NH-Amundi Asset Management (Infrastructure), NH-Amundi Asset Management (General), NH Hedge Asset Management, Woori Asset Management, Welcome Asset Management, Eugene Asset Management, Aegis Asset Management, GVA Asset Management, KB Asset Management, Quad Asset Management, Taesung Asset Management, Torus Asset Management, Truston Asset Management, Fine Value Asset Management, Petra Asset Management, Prime Asset Management, Hana Asset Management, and Korea Investment Value Asset Management.
FAQ
How many companies applied for the second round of Korea's National Growth Fund?
33 asset management companies submitted applications for the second round of trustee recruitment, which closed on the 20th. This compares to 24 applicants in the first round launched in May.
When will the second round of the National Growth Fund launch?
The final selection of trustee asset managers will occur in August, with the product scheduled to launch in September. The government and master fund operators accelerated this timeline following the first round's first-day sellout in May.
