KB Asset Management launches target-return fund tied to Korea's strategic industries
What's the deal? KB Asset ManagementDealroom has a profile for this one. Try Dealroom → is launching the "KB Korea Strategic Industries 50 Target-Conversion Fund," a bond-mixed vehicle investing in advanced strategic industries backed by the South Korean government. It keeps equities below 50% of holdings, with the rest in domestic bonds. The firm announced the launch on July 22.
Where's the money going? The fund targets 12 strategic sectors the government plans to support through its national growth fund, including semiconductors, displays, batteries, bio, robotics, defence, hydrogen, AI, and critical minerals. On the equity side, it will narrow the portfolio to 20–30 core companies across semiconductors, electronics, defence, batteries, bio, and space and robotics.
How does it work? The bond portion centres on high-grade domestic debt such as government, monetary stabilisation, and bank bonds, plus short-term bond ETFs and money market funds. The fund keeps a short average duration to reduce interest-rate risk.
What's the endgame? The target return is a 7% cumulative gain for the A-class share. Once the base price hits 1,070 won, the fund sells all equity-related assets and shifts to short-term bond ETFs, money market funds, and bonds. The structure aims to lock in gains and limit exposure to later market swings.
Why now? "The growth potential of Korea's core industries is expanding on the back of the AI supercycle and the government's industrial policy," said Beom Kwang-jin, head of KB's pension and wealth management division. The product invests in high-growth strategic industries, then converts to bonds after hitting its target to curb volatility, he said.
Where to buy? The fund is available through KB Kookmin BankDealroom has a profile for this one. Try Dealroom →, BNK Kyongnam Bank, Mirae Asset Securities, KakaoBank, and Korea Investment & Securities. It is raising money until July 31 and will be set up the same day, though the subscription period may vary by distributor.
The signal: The fund ties private capital to state-backed industrial priorities, packaging South Korea's push into AI, chips, and defence with a bond cushion for cautious investors. It reflects a growing appetite for products that chase policy-driven growth while capping downside risk.
Read more: Edaily
