The Public Growth Fund, launched on the 22nd on, sold out in five days and drew strong interest, prompting the financial authorities to conduct a fact-finding review and readjust the "ordinary people" allocation ratio and subscription limits for the second round of sales.
According to the financial authorities on the 18th, the Financial Services Commission completed first-round sales of the Public Growth Fund by the 11th on and is reviewing subscribers' age, gender, occupation, and subscription channel. The Financial Services Commission (FSC) initially expected the share of ordinary people to be in the 20% range, but it found the figure approached 40%.
The Public Growth Fund's criterion for ordinary people matches the ordinary-type ISA (individual savings account): those with earned income of 50 million won or less (or composite income of 38 million won or less if they have income in addition to earned income). As of the end of on, the share of ordinary subscribers to the Public Growth Fund was 38.6% (35% by sales amount).
The Financial Services Commission (FSC) plans to distinguish between ordinary people who meet the earned income standard and ordinary people without earned income, and also check the subscription amount, age, and occupation group of subscribers without income. For example, it will determine whether the account is in the name of a family member of a high-income household with no personal income, and address shortcomings in the second round of sales. Because the share of ordinary people was higher than expected, additional allocation is likely.
The Financial Services Commission (FSC) is preparing the second-round sales of the Public Growth Fund with a target launch in Sep. It will keep the policy mother fund manager and the public offering fund manager the same as in the first round, while newly selecting sub-fund managers who handle actual investment management to speed execution. The sales size will be the same as the first round at 600 billion won.
The Financial Services Commission (FSC) is expediting the launch because subscriptions made this year must be reflected in next year's year-end tax deduction. It also intends to quickly absorb the excess demand confirmed in the first round, as banks and securities firms tend to lose sales momentum toward year-end.
Based on the fact-finding results, the Financial Services Commission (FSC) is expected to tweak parts of the second-round sales method. It will also reflect complaints identified during the review and expand online sales. Because securities firms are less accessible than banks, their online share is expected to increase. In addition, it is discussing measures to strengthen asset managers' accountability and add incentives to improve returns.