The National Participation Growth Fund effectively sold out on its first day of sales, drawing strong demand. The government is promoting the fund as a flagship policy product to invest in advanced industries and revitalise capital markets.

More than 87 percent of the offered volume was taken up on the first day of sales. Some brokerages' online allotments closed in 10 minutes, focusing investor attention. In the market, the KOSDAQ rose on expectations of inflows into the National Growth Fund, among other effects.

Financial authorities are reviewing ways to bring forward part of next year's volume or supply additional volume, given the surge in demand. The possibility of additional sales in the second half has also been mentioned. A new policy experiment to channel public funds into future-industry investment appears to be moving onto a full track with market support.

• The National Participation Growth Fund sells out on day one, with a rush of purchases...conditions to consider before investing • Financial Services Commission Chairman Lee Eok-won (이억원) subscribes to the National Participation Growth Fund in person..."a future-industry investment platform" • As KOSPI pauses, funds pour into KOSDAQ...surges 5 percent on National Growth Fund expectations

South Korean stocks continue to rise, led by semiconductors, with investor enthusiasm showing little sign of cooling. The KOSPI jumped more than 8 percent in a single day and even broke above 7,800. Expectations are also growing that Samsung Electronics' share price will climb above 300,000 won.

Profit-taking has emerged after the sharp short-term rally, and market attention is spreading to KOSDAQ stocks that have risen less. Against that backdrop, 18 single-stock leveraged and inverse ETFs based on Samsung Electronics and SK Hynix are set to list, further widening investment options.

Asset managers have moved into a fee-cutting race as they begin competing to attract retail investors, and interest in high-risk, high-return products is rising. The market rally and the launch of new investment products are reinforcing each other, further fueling the semiconductor-led investment boom.

• [Stock market outlook] As semiconductors take a breather, KOSDAQ races ahead...where the market heads this week • KOSPI jumps more than 8 percent in a day to break above 7,800...Samsung Electronics nears 300,000 won • Samsung Electronics and SK Hynix single-stock leveraged and inverse 18 products to list on the 27th • Launch of leveraged ETFs on Samsung and Hynix nears...managers start a lowest-fee race

With the market boom continuing, financial authorities are pushing both market revitalisation and investor protection while speeding up rule changes. The Financial Services Commission will expand the scope of the omnibus account for foreigners to include ETFs and ETNs to improve overseas investors' access to South Korean stocks. At the same time, moves such as eliminating the cap on rewards for reporting stock manipulation and discussions on revamping duplicate listing rules are seen as efforts to strengthen the crackdown on unfair trading and protections for minority shareholders.

As stocks rise, balances on overdraft-style credit lines have increased, adding to the financial sector's burden of managing leveraged investing. The question of how to balance stronger bank soundness under Basel III with expanded corporate funding supply is again in focus. With expectations for capital market revitalisation rising, policy coordination between investment enthusiasm and financial stability is also emerging as a key task.

• Financial regulator expands omnibus accounts for foreigners to include ETFs and ETNs..."to improve access to South Korean stocks" • Cap on rewards for reporting stock manipulation to be removed...to expand incentives to report major cases • Duplicate listings move toward 'ban in principle, allow by exception'...shareholder protection measures in focus • Overdraft credit line balances grow in a stock market boom...banks walk a tightrope between profits and regulation • Basel III dilemma...concerns 'productive finance' may shrink as soundness is strengthened

Other major moves in finance and fintech are also summarised.

Financial firms are moving to improve customer convenience and strengthen daily-life services. KB Financial Group teamed up with the Ministry of Agriculture, Food and Rural Affairs to take part in support to ease office workers' meal costs, and KB Kookmin Bank introduced a product to manage senior residence deposits in trust as it targets demand for asset succession among older customers. Shinhan Bank is set to launch 'Shinhan Super SOL', which integrates affiliate services, and Shinhan Investment has moved to expand infrastructure for overseas stock investment through an equity investment in the U.S. alternative exchange 24X.

• KB Kookmin Bank launches a trust for inheriting senior residence deposits..."simplifies inheritance procedures" • KB Financial joins the agriculture ministry to support 'a hearty lunch for office workers'...up to 40,000 won off per month • Shinhan Bank to launch integrated financial platform 'Shinhan Super SOL' next month • Shinhan Investment secures a stake in U.S. exchange 24X...strengthens U.S. stock infrastructure

Hana Bank is working with HD Hyundai Robotics and the Korea Credit Guarantee Fund to support the robotics industry. Hana Securities is expanding its Japanese real estate investment solutions as it targets demand for overseas investment, while Woori Bank is widening its wealth management customer reach by opening 'Two Chair W Jamsil', a WM-focused channel.

• Hana Bank works with HD Hyundai Robotics and the Korea Credit Guarantee Fund on financial support for the robotics industry • Hana Securities strengthens Japanese real estate investment solutions...joins hands with Jureal Estate • Woori Bank opens 'Two Chair W Jamsil'...expands WM-focused channels

Internet-only banks are focusing on expanding inclusive finance and upgrading services. The three internet banks all exceeded their first-quarter targets for supplying loans to mid- to low-credit borrowers, and KakaoBank launched the 'National Living Expenses Account' that protects up to 2.5 million won per month from seizure. K Bank's outstanding loans to sole proprietors topped 3 trillion won, and Toss Bank is improving customer service efficiency by introducing an AI-based consultation support system.

• Three internet banks exceed first-quarter targets for loans to mid- to low-credit borrowers...inclusive finance continues • KakaoBank launches 'National Living Expenses Account'...protects 2.5 million won per month • K Bank's loans to sole proprietors top 3 trillion won...up 1 trillion won in six months • Toss Bank introduces 'Help Docs'..."cuts waiting time by 60 percent"

Brokerages are focusing on strengthening wealth management and digital platform competitiveness. Mirae Asset Global Investments' assets under management topped 600 trillion won, supported by growth in its ETF and pension businesses, while Mirae Asset Securities launched a management platform for next-generation corporate clients. Samsung Securities exceeded 3 million YouTube subscribers, for the first time in the financial sector, with an AI-based content strategy.

• Mirae Asset Securities launches young executive platform 'Sage Beyond' • Mirae Asset Global Investments' AUM tops 600 trillion won...accelerates growth with ETFs, pensions and AI • Samsung Securities tops 3 million YouTube subscribers..."AI content strategy proves effective"

Moves to expand payment ecosystems and upgrade data-driven financial services are also growing. Toss is expanding offline touchpoints by widening the rollout of its facial recognition payment service, 'Face Pay', to Youngpoong Bookstore and highway rest areas. Kakao Pay is strengthening payments and financial services through a fee waiver policy for new merchants and use of its own credit scoring model, while Hecto Financial and KakaoBank expanded cooperation on account-based payment services. Competition is intensifying beyond simple payments into daily-life platforms and data-driven finance.

• Toss expands offline payment trials for 'Face Pay' with Youngpoong Bookstore • Toss joins hands with Pulmuone Food and Culture...introduces 'Face Pay' at highway rest areas • Kakao Pay waives payment fees for new merchants...moves to expand payment ecosystem • Kakao Pay applies 'Kakao Pay Score' to Korea Housing Finance Corp jeonse loan guarantees • Hecto Financial and KakaoBank strengthen cooperation on account-based payment services

Business areas centred on payments and data services are also expanding. Coocon introduced a solution that simplifies procedures for submitting financial documents, and Banksalad strengthened data-driven finance competitiveness by launching a personalised loan management service. NHN KCP and Danal are also focusing on developing new demand by moving into membership point payments and building payment ecosystems for foreigners. Competition among platforms linking finance and daily life is spreading across the fintech sector.

• Coocon launches non-face-to-face document submission solution 'WeBridge'...simplifies loan and insurance contracts • NHN KCP builds payment infrastructure for CJ Olive Young's 'Olive Points' • Danal joins hands with World K-POP Center...builds a 'K-POP payment ecosystem' for foreigners • Banksalad launches customised 'reduce interest' solution...strengthens loan management