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 focusing on emerging industries, including AI, commenced its second retail offering of 600 billion won ($443 million) on Wednesday. Banks sold approximately 10 percent of their allocations by midday, indicating a less enthusiastic response compared to the initial offering. This second round experienced a slower start, potentially due to the losses incurred by the first fund and revised subscription rules that disqualify previous participants.
The Financial Services Commission (FSC), the nation's leading financial regulator, announced that investors can obtain shares through banks and securities firms on a first-come, first-served basis until October 15. The retail product, intended to provide individuals access to the government's National Growth Fund program, aims to raise a total of 1.2 trillion won across two offerings.
The government will contribute an additional 240 billion won in subordinated capital, which will absorb losses before affecting retail investors' capital, resulting in a combined pool of 1.44 trillion won.
The National Growth Fund program was launched recently and aims to foster growth in strategic sectors, with AI being one of their primary focuses.
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.
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