Youth Investment in National Growth Fund Trails Behind Older Demographics, Reaching Only 13%

South Korea's "National Growth Fund," designed to invest in advanced strategic industries, has seen a surprisingly low uptake from its target younger demographic, with individuals in their 20s and 30s accounting for just 13% of the total subscription amount. The fund, launched in June with a 600 billion won (approximately $435 million) scale, was fully subscribed shortly after its release, highlighting strong investor interest overall.

Data compiled by Kim Sang-hoon, a member of the People Power Party, from the Financial Services Commission revealed that the first phase of the fund attracted 30,038 subscribers, totaling 598.9 billion won. However, a significant portion of this investment came from older age groups. Those in their 50s were the largest subscriber group, contributing 231.6 billion won, followed by those in their 40s with 170.6 billion won. In contrast, the 20s and 30s combined only invested 80.2 billion won.

Experts attribute the low participation among younger individuals to several factors. Many may have limited savings and thus lower investment capacity. Additionally, the fund's 5-year maturity period, which restricts early withdrawals, could be a deterrent for younger people who may need access to their funds for significant life events such as marriage or raising children. Despite the low youth participation, the fund exceeded its target for "ordinary people" investors, with nearly 46% of bank subscribers and over 31% of securities subscribers falling into this category based on subscriber numbers.