State-backed AI fund draws cooler demand in second offering amid loss concerns
A government-backed fund investing in emerging industries, including artificial intelligence (AI), began its second retail offering of 600 billion won ($443 million) Wednesday, with banks selling about 10 percent of their allocations by midmorning. Demand was more subdued compared to the first offering, when some banks exhausted their allocations within two hours. The slower start appears to…
The government-backed fund focused on emerging sectors such as artificial intelligence (AI) held its second retail offering of 600 billion won ($443 million) on Wednesday. Banks sold approximately 10% of their allocations by midday, indicating lower demand compared to the initial offering. In the first round, some banks had sold through their allocations within a short timeframe.
This more moderate response is believed to be influenced by the fund's losses from the previous offering and revised subscription rules that no longer allow previous participants to join. The Financial Services Commission (FSC), the nation's leading financial authority, stated that investors can sign up through banks and securities firms on a first-come, first-served basis until October 15.
Aimed at providing individuals access to the government's National Growth Fund program, the retail product is designed to raise a total of 1.2 trillion won across two offerings. The government is contributing an additional 240 billion won in subordinated capital, which absorbs losses before impacting retail investors' capital, resulting in a combined pool of 1.44 trillion won. The National Growth Fund program was established later that evening.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
