Moon's 'patriotic fund' gains popularity

President Moon listens to a bank employee before signing an investment agreement document for a private equity fund set up to nurture local parts and materials exporters at NongHyup Bank's headquarters in Seoul, Aug. 26. Yonhap

By Lee Kyung-min

A private equity fund set up to help nurture local parts and materials exporters amid trade feud with Japan continues to draw individual investors after President Moon Jae-in signed up for the fund a week ago, data showed Sunday.

The so-called patriotic fund set up by NH-Amundi Asset Management, a joint venture between NH Financial Group and French financial group Credit Agricole, has raised over 40 billion won ($33 million) as of Aug. 29.

Apart from 30 billion won put up by subsidiaries of NH Financial, individual investors have invested over 10 billion won in about two weeks since the product was launched Aug. 14.

The investment amount rapidly increased after President Moon invested in the fund Aug. 26.

During a meeting at NongHyup Bank's headquarters in Seoul with officials from the bank and the financial group, President Moon said boosting the competitiveness of the parts and materials sector will strengthen the manufacturing industry.

“Nurturing those firms is needed not only as a countermeasure to Japan's export curbs, but also as a long-term strategy to help the country better stand on its own,” he said.

Individual investors put up 3.4 billion won and 2.7 billion won on Aug. 29 and 30, respectively.

This is an over 13-fold and 10-fold increase, respectively, from the roughly 250 million won procured up until Aug. 26.

The fund was designed to increase investment in around 60 promising KOSPI- and KOSDAQ-listed firms including Samsung Electronics, SK hynix and LG Chem.