[News Today] “Take part in National Growth Fund”

[LEAD]

The KOSPI briefly topped the 7,500 mark yesterday, setting another all-time high. Amid the rally, President Lee Jae Myung encouraged participation in the National Growth Fund, one of his campaign pledges. He said the fund could help people build assets more steadily while supporting future growth industries.

[REPORT]

After breaking the 7,000 mark, the benchmark Korea Composite Stock Price Index(KOSPI) even breached 7,500 at one point during intraday trading.

Despite foreign investors unloading stocks for profit taking, the index closed at another fresh high in the 7,490 range.

It was again Samsung Electronics and SK hynix, first and second in market capitalization, that led Thursday's rally.

Meanwhile President Lee Jae Myung called for a transition to what he called 'productive finance' and urged participation in the National Growth Fund which goes on sale from May 22.

As one of the president's campaign pledges, the fund will invest KRW 150 trillion, or more than USD 102 billion, into startups and 12 high tech industries such as chips and AI over the next five years.

Lee Jae Myung / President

The fund should help spread productive finance, advance future high-tech industries and aid the public’s stable wealth growth.

The structure pools KRW 600 billion from retail investors and KRW 120 billion in government funds.

If the fund incurs losses, the government will cover up to 20%.

Tax deduction is also available with the maturity period set at five years while early redemption is not permitted.

Regarding speculation that introducing income tax on financial investments could be reviewed amid the bullish stock market, the presidential office said that no talks on the matter have been held yet.