National Growth Fund Calculator

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.

2nd-round Sales Channels (by sub-fund manager)

These are the 24 financial institutions (10 banks + 14 securities firms) that took part in the 2nd-round sale (30 Sep – 15 Oct 2026). Sales have closed. If you already subscribed, you can check your account and returns with the institution you subscribed through.

Worked examples

• KRW 50M investment, 30% expected return, 24% tax bracket

  Assume: investment KRW 50M, expected 5-year cumulative return 30%, marginal comprehensive income tax rate 24%. ① Tax deduction = 30M×40% + (50M−30M)×20% = 12M + 4M = KRW 16M ② Refund from deduction = 16M × 24% × 1.1 (incl. local income tax) = KRW 4.224M ③ Expected final amount = 50M × 1.3 = KRW 65M ④ Separate-taxation dividend tax savings (estimated) = KRW 480K ⑤ Total benefit (refund + savings) = 4.224M + 480K = KRW 4.704M

• KRW 70M investment (deduction cap reached), 38% bracket, 30% loss scenario

  Assume: investment KRW 70M (deduction cap of KRW 18M reached), marginal rate 38%, and a hypothetical 30% loss. ① Tax deduction = KRW 18M (capped — no further increase above KRW 70M) ② Refund from deduction = 18M × 38% × 1.1 = KRW 7.524M ③ Under a 30% loss scenario, the government covers 20%, leaving your loss at 30%−20% = 10% → minimum guaranteed payout = 70M × (1−10%) = KRW 63M ④ Total benefit (refund + estimated savings) = KRW 8.196M Since the deduction stops growing past KRW 70M, investing beyond the cap purely for the tax-deduction effect becomes inefficient.

Frequently asked questions

Can I still subscribe to the National Growth Fund?

Both 2026 sales rounds have closed. The 1st round (22 May – 11 Jun) raised KRW 600 billion, and the 2nd round (30 Sep – 15 Oct) raised KRW 519.8 billion (including a KRW 15 billion seed investment), for a combined total of about KRW 1.12 trillion. As of 23 Oct 2026, no further round has been announced. Check the FSC press releases and the KDB National Growth Fund site for news of any new round.

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 institution you subscribed through or the sub-fund terms.

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.

What happens if the loss exceeds 20%?

The government only covers up to 20% of any loss. Anything beyond that is borne entirely by the investor — this is not a principal-guaranteed product, and that distinction matters.

How is the KRW 200M 5-year cumulative limit tracked?

Separate from the KRW 100M annual limit, you can subscribe up to KRW 200M cumulatively over 5 years. Even if you split subscriptions across multiple banks or securities firms, the NTS system tracks your cumulative total across all of them, so you can't exceed the limit by spreading it around.

If I already subscribed, where can I check my returns?

You can check your returns in the account you subscribed through, and you'll receive an asset management report every 3 months. According to the FSC, the 3 master funds were set up on 16 Oct 2026, and the 10 sub-funds began investing from 19 Oct.

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