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South Korea to Launch Second 'Citizen Participation Growth Fund' with Increased Allocation for Low-Income Earners
Finance · Investment Managers · yonhap_finance · 2026-09-08
The South Korean government is set to launch a 600 billion won growth fund on September 30, prioritizing low-income individuals with a 50% quota allocation.
What Happened
Fund Launch and Scale: The Financial Services Commission announced the launch of the second 'Citizen Participation Growth Fund' worth 600 billion won, starting on September 30. The subscription period will last for two weeks on a first-come, first-served basis, with the possibility of early closure if the target amount is reached.
Enhanced Support for Low-Income Groups: To broaden investment opportunities for low-income earners and young adults, the government has significantly increased the dedicated quota for these groups to 50% of the total offering. During the first week, this portion is reserved for eligible applicants, while any remaining capacity will be opened to the general public in the second week.
Tax Benefits and Terms: Investors can benefit from income tax deductions of up to 18 million won and a 9.9% separate taxation rate on dividend income for five years. The fund is a five-year closed-end product, requiring a dedicated account for participation, and those who subscribed to the first fund are ineligible to join.
Investment Structure: Managed by Mirae Asset, Samsung, and KB Asset Management, the fund will pool 720 billion won—including government support—to be distributed across 10 sub-funds. Regardless of which of the three public funds a citizen chooses, they will share the same portfolio and investment returns.