South Korea's National Growth Fund sold out nearly all its initial allocations on Friday, sparking a rally in the KOSDAQ exchange [1, 2].
The fund's rapid adoption signals strong investor confidence in the domestic technology sector. Because the fund focuses on semiconductor, AI, and biotech industries, market participants expect a significant influx of capital into KOSDAQ-listed companies [1].
According to financial industry sources, the total allocation of 2.2 trillion KRW distributed across five major commercial banks was completely exhausted by Friday afternoon [2]. This surge in demand created immediate buying pressure on the market.
The KOSDAQ opened 1.2% higher at 1,119 points and climbed throughout the day [1]. By the close of trading, the index had risen 4.99%, ending at 1,161 points [1].
Other market indicators also showed movement. The KOSPI remained steady around 7,800 points, though Samsung Electronics shares exceeded 300,000 KRW for the first time in the regular market [1].
"The KOSDAQ surged nearly 5% due to expectations of fund inflows as the National Growth Fund was almost completely sold out on its first day," a YTN anchor said [1].
This optimism extended to the foreign-exchange market. The South Korean won reached its highest level against the U.S. dollar in 50 days [1].
“The KOSDAQ opened 1.2% higher at 1,119 points and climbed throughout the day.”
The immediate sell-out of the National Growth Fund demonstrates a high appetite for sector-specific investment in AI and semiconductors. By concentrating capital into these growth industries, the fund acts as a catalyst for the KOSDAQ, potentially decoupling the performance of tech-heavy small-and-mid-cap stocks from the broader, more stable KOSPI index.
