Samsung Asset Management begins selling a public participation national growth fund aimed at supporting the growth of South Korean advanced technology companies and helping citizens build assets.

Samsung Asset Management said it will start full-scale sales of the Samsung public participation national growth fund from May 22. The subscription period runs until June 11 and may end early if the allocation is exhausted.

The public participation growth fund is a product designed to share the policy outcomes of the government-driven national growth fund with the general public.

Funds raised will be invested in unlisted companies and KOSDAQ technology-special listing firms across 12 advanced strategic industries with global competitiveness, including semiconductors, artificial intelligence (AI), biotechnology, defense, and robotics.

The product is a privately placed fund-of-funds public offering with a profit-and-loss differentiated structure. Even if losses occur in the private sub-funds held by the public fund, capital contributed by the government and private funds serves as a junior tranche that absorbs losses first up to a certain decline range.

Retail investors will have a buffer designed to help protect against some principal loss at maturity. It does not guarantee full principal protection.

Tax benefits are also provided. An income deduction rate of 40 percent applies to investments of up to 30 million won, 20 percent to investments above 30 million won and up to 50 million won, and 10 percent to investments above 50 million won and up to 70 million won.

The annual income deduction limit is up to 18 million won. Investors who hold to maturity for at least 5 years can also receive a separate taxation benefit of 9 percent on dividend income.

To receive tax benefits, investors must subscribe through a dedicated public participation growth fund account rather than a general account. Eligible subscribers are adults aged 19 or older, or workers aged 15 or older.

Anyone who was subject to comprehensive taxation on financial income at least once in the past 3 years cannot subscribe. The investment limit is 100 million won per person per year, with a maximum of 200 million won over 5 years. The fund has a five-year maturity and is a closed-end structure that does not allow early redemptions.

Kwon Soon-gil (권순길), head of the OCIO (outsourced chief investment officer) solution management team at Samsung Asset Management, said the key to selecting managers for national growth sub-funds is the ability to identify strong companies and recover investments. He said the firm secured stability by verifying unicorn-finding capabilities, past repayment records and other factors alongside financial soundness screening.