The second round of South Korea's public participation growth fund closed below its 600 billion won target.
The fund raised 519.8 billion won ($365 million), or 86.6% of the 600 billion won goal, over 10 trading days after its launch on Sept. 30, the Financial Services Commission said on the 15th. Combined with the first round, the public participation growth fund has drawn about 1.12 trillion won.
Of the second round, banks sold 170.3 billion won and brokerages 334.5 billion won, meaning brokerage sales were roughly double those at banks. Low- and middle-income investors accounted for 26% of sales, while online channels made up 83.7%.
The public participation growth fund is a policy-driven public offering fund that pools money from retail investors to back advanced strategic industries such as artificial intelligence, semiconductors and biotechnology. The first fund, launched in May, sold out within five trading days on the back of a strong stock market. The weaker showing in the second round is attributed to the recent downturn in equities. The KOSDAQ index, one of the markets the fund channels money into, plunged more than 8% on the 15th.
Three parent funds in the second round will be established on the 16th, with investments through 10 sub-funds set to begin on the 19th.