The government plans to launch a second tranche of the National Growth Fund worth 600 billion won, open to retail investors, during the third quarter.
Financial Services Commission Chairman Lee Eok-won announced the plan at a meeting with fund managers of the National Growth Fund held Saturday at the Korea Financial Investment Association in Yeouido, Seoul, according to the financial industry on Monday.
The second fund will also receive 120 billion won in government fiscal funds as a subordinated investment. The fiscal parent fund manager and the public offering fund manager will remain the same as in the first tranche, but the sub-fund managers in charge of actual investment operations will be newly selected. To boost returns, the autonomous investment limit for sub-funds will be raised to 40 percent, and KOSDAQ venture funds may also be used.
Sales-related matters, including the allocation of retail volume and the proportion of online sales, will be improved by gathering opinions from banks and securities firms based on the sales performance of the first fund. Within the authorities, the direction is being set toward increasing branch volume for banks and online allocation for securities firms. "I ask the industry to do its best so that fund managers can generate the highest returns by leveraging their know-how and foresight," Chairman Lee said.
