Na National Growth Fund Loading... : Investor Sentiment and Bull/Bear Views

The National Growth Fund offers significant tax benefits, guaranteeing a 9-10% return for certain income brackets, making it an attractive alternative to volatile equities.

The National Growth Fund is designed to channel citizen investment into future growth industries, allowing broad participation in Korea's economic transformation; a second tranche is being prepared due to strong demand, and the chairman himself has invested.

The National Growth Fund, expected in June or July, offers a 40% income deduction on up to 30 million won and a 9.9% dividend tax rate if held three years, making it one of Korea's strongest tax-advantaged products.

The National Growth Fund, slated for launch around June-July, is presented as one of the strongest tax-advantaged products. Subscriptions up to KRW 200 million are allowed, with a 40% income deduction on up to KRW 30 million invested, for a maximum deduction of KRW 12 million. If held for at least three years, dividend and sale income are taxed at 9.9% instead of the usual 15.4% including local tax. Because the comprehensive income deduction cap is KRW 25 million and includes other deductions, investors should not put the full KRW 200 million in at once; spreading subscriptions across years, if the program is extended, can preserve more of the deduction. Fund manager details are not yet disclosed.