Former South Korean President Moon’s Investment in ‘Pilseung Korea Fund’ Yields Over 440% Return

A stock fund championed by former South Korean President Moon Jae-in, the NH-Amundi Pilseung Korea Securities Investment Trust, has generated a cumulative return exceeding 440% since its inception in August 2019. President Moon initially invested 50 million won in the fund, which is now valued at over 270 million won.

Origins and Purpose of the Fund

The ‘Pilseung Korea Fund,’ often referred to as a ‘patriotic fund’ or ‘anti-Japanese fund,’ was launched during a period of heightened trade tensions between South Korea and Japan. Japan had imposed restrictions on exports of key semiconductor materials, prompting a focus on strengthening domestic capabilities in materials, parts, and equipment (materials and equipment) sectors. Yonhap News Agency reported on President Moon’s initial investment in August 2019.

Performance and Returns

As of February 2nd, 2024, the NH Amundi Victory Korea Fund has recorded a cumulative return of 446.5% since its establishment, surpassing the KOSPI index’s 225.4% return over the same period. Asia Economy reported on the broader Korean Recent Deal investments in 2020, which included initiatives supporting domestic industries.

Recent performance figures demonstrate continued strong returns: a one-year return of 160%, a six-month return of 91.69%, and a most recent monthly return of 31.70%.

Investment Strategy and Portfolio

The fund’s success is attributed to its investment in both domestic small and medium-sized companies and major players like Samsung Electronics and SK Hynix. The fund’s portfolio strategy has aligned with the growing competitiveness of the domestic manufacturing industry, particularly in the semiconductor sector, and has benefited from recent advancements in artificial intelligence (AI) and expectations of a turnaround in the memory industry.

Social Impact and Fund Management

The NH Amundi Victory Korea Fund also operates as a public interest fund, allocating 50% of its management fees to support scholarships at universities specializing in materials and equipment technology and other social contribution activities.

Fund Growth and Investor Interest

The fund’s net assets have grown significantly, reaching 1.4197 trillion won as of February 10th, 2024. This represents more than a threefold increase from the 295 billion won held at the beginning of 2023, exceeding 1 trillion won last month with an additional 400 billion won inflow in just one month.

As one securities industry official noted, the fund has “been reborn as a dinosaur fund in about 7 years,” demonstrating the potential for long-term performance to drive success in the public fund market.