National Growth Fund Calculator
Korean government policy fund launched 22 May 2026. Simulate up to ₩18M tax deduction + 20% government loss-sharing + 9% separate dividend tax.
Investment Inputs
Annual cap ₩100M / 5-year cumulative ₩200M per person
Fund target 30% over 5 years (~6% annual) (default 30%)
Refund = deduction × rate × 1.1 (incl. 10% local tax)
Government covers first 20% of loss; remainder is user loss
Calculation Result
- Income tax deduction
- ₩ 18,000,000
- Tax refund this year
- ₩ 4,752,000
- Expected maturity (5-year)
- ₩ 91,000,000
- Worst-case guaranteed amount
- ₩ 70,000,000 (0.0% loss)
- Regular dividend tax (15.4%)
- ₩ 1,617,000
- NGF dividend tax (9%)
- ₩ 945,000
- Dividend tax savings
- ₩ 672,000
- Total benefit (refund + savings)
- ₩ 5,424,000
- • Pre-launch estimate. Verify exact terms with sales channels.
Three key benefits
1. Income tax deduction (up to KRW 18M)
A portion of the subscription amount is recognized as a deduction in comprehensive income tax computation. The annual limit is KRW 18M, capped for those with total salary above KRW 70M. The higher your marginal rate (38%, 42%, etc.), the larger the refund. Refund = deduction × marginal rate × 1.1 (10% local income tax included).
2. Government loss sharing (up to 20%)
If losses occur, the government absorbs up to 20% of the loss first. Example: a -30% loss → government absorbs -6% (20%) → user's actual loss -24%. There are caps on the absorption, so this is not a principal guarantee.
3. 9% separate taxation on distributions
Distributions over the 5-year period are taxed at 9% separately, instead of the ordinary dividend tax of 15.4%. Other financial income is not aggregated, so it has no impact on comprehensive income tax. Savings accumulate with distribution size.
Sales Channels (by sub-fund manager)
22 May ~ 11 Jun, business hours (9-16h) at branches or online. 25 financial institutions (10 banks + 15 brokerages).
What is the National Growth Fund?
The National Growth Fund (NGF) is a KRW 150 trillion policy fund being established by the Korean government in 2026 to develop strategic industries; KRW 600 billion of this is allocated to individual citizen participation. The government and private actors (pension funds, financial institutions, individual citizens) jointly invest for five years in companies in semiconductors, batteries, biotechnology, AI, and other strategic industries. Individual citizens can subscribe via sub-funds offered by 25 financial institutions (10 banks + 15 securities firms). Each person can subscribe up to KRW 100M per year, capped at KRW 200M cumulatively over 5 years. The subscription window is May 22 – June 11, 2026, business hours 09:00–16:00, via branch or online. The maturity is 5 years (the earliest principal recovery point). The government absorbs up to 20% of losses through a buffer mechanism, and distributions receive 9% separate taxation instead of the standard 15.4% dividend tax — substantially more favorable than ordinary funds. Note that early withdrawal may be restricted after the subscription period, so funds are effectively locked for 5 years.
Frequently asked questions
- How do I subscribe to the National Growth Fund?
- Subscribe May 22 – June 11, 2026, during business hours (09:00–16:00), at one of 25 financial institutions (10 banks + 15 securities firms), either at a branch or online. Each sub-fund has a different operator; choose your existing bank or a preferred operator.
- How is the income tax deduction granted?
- A portion of the subscription amount is recognized as a deduction, capped at KRW 18M per year. It is reflected automatically in year-end settlement or in the May comprehensive income tax filing. The refund amount depends on your marginal rate and subscription amount.
- Can I withdraw before the 5-year maturity?
- In principle, the fund is locked for 5 years, and early withdrawal may be restricted or subject to fees. Exact terms vary by sub-fund — check with the seller before subscribing.
- Does government loss sharing mean principal protection?
- No. The government absorbs up to 20% of losses, but if the fund performs very poorly, the user can still experience significant losses. It is safer than ordinary funds but not principal-guaranteed.
- What is the maximum amount one person can subscribe?
- KRW 100M per year and KRW 200M cumulatively over 5 years. Spouses each have their own limits, so a couple can subscribe up to KRW 400M combined.
- Is the 9% separate taxation always favorable?
- It is favorable when your marginal comprehensive income tax rate exceeds 15.4% (the standard dividend tax rate). For those in the 14% bracket (under KRW 50M), the gap is small. NGF applies separate taxation by default, leaving little room for choice.
Related Guides
Korea Youth Benefits Guide 2026
Explore other youth programs alongside the National Growth Fund — Youth Future Savings, Youth Leap Account, Tomorrow Learning Card, and more.
Read guide →Official Sources
Always verify with the official sources below