87% of the total limit exhausted on day one; low-to-middle income subscribers account for nearly 40% of bank sales. 'Government loss protection + tax deductions' prove effective; distribution method may shift from 'first-come, first-served' to 'low-amount priority.'

The publicly participating 'National Growth Fund' has achieved a record-breaking hit, effectively selling out centered on commercial banks on its very first day of launch. In particular, the proportion of low-to-middle-income subscribers—such as those with an earned income of 50 million won or less—far exceeded expectations, drawing a massive influx of ordinary citizens' capital into the capital market. In response to this explosive demand, financial authorities have urgently begun reviewing plans to supply additional volume in the second half of this year.

Ordinary Citizens’ Capital Ignites Over 'Loss Protection + Income Deduction'

According to the Financial Services Commission (FSC) and the banking sector on the 24th, the National Growth Fund, which opened for subscription on the 22nd, exhausted 87.1% (5224 billion won) of its total 600 billion won public offering limit on day one. Online allocations at almost all brokerages, except Shinyoung Securities, were depleted immediately upon launch. In the case of Mirae Asset Securities, its online allocation sold out within 10 minutes of opening, creating a frenzy where around 20,000 people flocked to the midnight pre-account opening service alone.

The core driving force behind this success was the active participation of ordinary citizens. Among the volume sold across 10 major banks, subscribers to the 'ordinary citizen type' product (for those with an earned income under 50 million won or a comprehensive income under 38 million won) accounted for nearly 40%. Considering that the financial authorities originally allocated only 20% for this demographic, demand exceeded supply by more than twofold. It is estimated that approximately 100 billion won of ordinary citizens' capital flowed into the fund.

The market response was exceptionally passionate due to the unprecedented incentives. A commercial bank official stated, "Although there is a burden of funds being locked up for five years, the safety net where the government absorbs the first 20% of losses, coupled with a tax deduction of up to 40%, is highly attractive. Word of mouth spread rapidly across financial communities that this fund is more advantageous than retirement pensions in terms of both returns and tax savings."

Financial Authorities Review H2 Additional Supply… Will the First-Come-First-Served Method Change?

As signs of an early sell-out emerged beyond expectations, financial authorities are moving swiftly. The authorities originally planned to form a fund worth 3 trillion won by allocating 600 billion won annually for five years starting this year. However, they are now discussing measures with related ministries to fast-track a portion of next year's volume or organize an additional budget for the second half of this year.

Since additional supply requires government fiscal injection and tax incentives, consultations with the Ministry of Economy and Finance are essential. The internal sentiment within the government is reportedly positive overall. An FSC official remarked, "As market demand has been clearly proven, a consensus is forming on the need for additional supply. If additional volume is approved, we will adjust the timing of the release in H2 so that subscribers can receive income deductions in this year's year-end tax settlement."

Market insiders are also paying close attention to whether the 'first-come, first-served' method will be modified for additional sales. This is due to deep regrets among ordinary citizens who missed the opportunity on the first day due to a lack of information or workplace duties.

Back in March 2015, during the launch of the 'Ansim Conversion Loan,' authorities decided to supply an additional quota after the initial limit was prematurely exhausted due to a first-come, first-served rush. At that time, they changed the approval criteria to favor 'lower-priced housing first.' Consequently, for the National Growth Fund's additional supply, alternative methods such as prioritizing approvals in the order of 'lowest subscription amounts' are being discussed to distribute opportunities to more people.

A financial industry insider predicted, "There is significant pent-up demand from people who missed out during the first round. If the additional sales in the second half are confirmed, the public offering fever will become even hotter."

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