South Korea's Financial Services Commission (FSC) confirmed on the 10th that it is conducting final reviews to exclude first-round subscribers from the second National Growth Fund sales, scheduled for Q3 with 600 billion won in volume. The FSC is prioritizing citizens who missed the first-round opportunity due to early sellout, as the second round represents unplanned additional supply. The first round, launched on May 22, sold 87% of its volume on the first day and reached full capacity by May 29, five business days after launch, with 30,258 total subscribers and an average subscription of approximately 19.83 million won per person.
FSC Leans Toward Excluding First-Round Subscribers from Second Sales
According to financial authorities on the 10th, the FSC is conducting final reviews on whether to allow additional investment from first-round subscribers during the second fund sales design process, which will proceed after sub-fund manager selection. While formally collecting opinions on both allowing and excluding existing subscribers, internal weight is reportedly shifting toward excluding existing subscribers. The National Growth Fund was originally designed with annual sales of 600 billion won once per year, with individual investment limits of 100 million won annually and 200 million won total over five years.
First-Round Fund Sold 87% on Launch Day, Reached Full Capacity in Five Days
The first-round fund launched on May 22 recorded performance exceeding expectations. On the launch day, 87% of total volume (524 billion won) sold, and full capacity was reached on the morning of the 29th, five business days later. The original募集 period was approximately three weeks until June 11, but the fund could not sustain even one week. Total subscribers numbered 30,258, with an average subscription amount of approximately 19.83 million won per person. Low-income subscribers with earned income of 50 million won or below numbered 11,677, accounting for 38.6% of the total and significantly exceeding the low-income priority allocation volume (20%). Following the sellout, complaints continued from citizens who missed the subscription opportunity, and President Lee Jae-myung mentioned at a cabinet meeting that he "received many messages saying 'I missed the opportunity to subscribe,'" leading the government to decide on an additional 600 billion won supply not in the original plan.
FSC Officials Justify Exclusion as Aligned with Additional Supply Purpose
Within the FSC, the opinion that this point should serve as the standard for second-round sales targets is reportedly predominant. The logic is that since the second-round volume is additional supply not in the original plan, giving priority opportunity to citizens who could not participate due to sellout aligns with policy purpose, rather than subscribers who already obtained investment opportunities within the annual investment limit of 100 million won in the first round. An FSC official stated, "Originally this was a product designed on the premise of annual sales once per year, but it sold out faster than expected, leading to the organization of additional volume not in the plan," adding "Considering that purpose, the expectations of people who already invested in the first round can be seen as somewhat satisfied, and there are not few opinions that giving opportunity to citizens who could not subscribe this time is the more correct direction." The official explained, "Since this additional supply has a kind of event character, restricting existing subscribers does not conflict with the system's purpose."
Sales Method Improvements Include Expanded Low-Income Allocation
Comprehensive improvement work on sales methods is also proceeding concurrently. In the second fund sub-fund manager selection announcement released the previous day, the FSC stated, "Sales-related matters such as low-income priority allocation volume and online sales proportion will be improved in a direction that increases citizen convenience by collecting opinions from sellers such as banks and securities companies based on first-round sales performance." During first-round sales, criticism was raised that subscription accessibility was poor as bank offline volume was mostly exhausted within two days. Accordingly, expansion of bank offline volume, increase in securities company online sales proportion, and expansion of low-income priority allocation ratio are being reviewed together. Another FSC official stated, "We are reviewing the overall sales design including whether to allow first-round participants," adding "The direction will be established in the process of going through public offering fund securities report submission and seller preparation procedures after sub-fund manager selection (August)." The FSC plans to finalize the sales plan after going through securities report submission and seller preparation procedures as soon as sub-fund manager selection is completed next month.
FAQ
Q: When will South Korea's second National Growth Fund be available for purchase?
A: The second National Growth Fund with 600 billion won in volume is scheduled for launch in Q3. The FSC plans to finalize the sales plan after completing sub-fund manager selection in August and going through securities report submission and seller preparation procedures.
Q: Why is the FSC considering excluding first-round subscribers from the second sales?
A: The FSC is prioritizing citizens who missed the first-round opportunity due to early sellout. Since the second round represents unplanned additional supply and first-round subscribers already obtained investment opportunities within the annual limit of 100 million won, the FSC considers giving priority to non-subscribers as aligned with the additional supply's policy purpose.
Q: How quickly did the first National Growth Fund sell out?
A: The first-round fund launched on May 22 sold 87% of its total volume (524 billion won) on the launch day and reached full capacity by the morning of May 29, five business days after launch. The original sales period was approximately three weeks until June 11.
