KB Asset Management Launches 'KB New Korea Fund'

Investment Focused on Policy-Benefiting Industries...
Expectations for Resolving the 'Korea Discount'
Pursuing Stable Performance with Flexible Response to Market Changes

KB Asset Management announced on July 22 that it will launch a new domestic equity fund in line with the new government's industrial policy direction and the advancement of the capital market.

The 'KB New Korea Fund', which will be launched on July 23, is an equity fund that selectively invests in companies expected to benefit from the government's growth policies.

The new government has designated six strategic industries, collectively referred to as 'ABCDEF', as new growth drivers for Korea's economic recovery. 'ABCDEF' stands for AI (Artificial Intelligence), Bio, Contents, Defense, Energy, and Factory (Manufacturing).

The 'KB New Korea Fund' aims to capture the benefits of structural growth by proactively investing in the 'ABCDEF' industries. In particular, it focuses on selecting companies related to semiconductors, bio, defense, and K-culture, which are expected to serve as mid- to long-term growth engines, employing a strategy that targets both growth potential and profitability.

The fund will also selectively invest in holding companies and stocks with low price-to-book ratios (PBR), which are expected to see improved profitability as the 'Korea Discount' is addressed through the advancement of the capital market.

The 'KB New Korea Fund' will build its portfolio around large-cap companies listed on KOSPI and KOSDAQ, while also incorporating ESG (Environmental, Social, and Governance) factors to promote sustainable growth. At the same time, it will diversify its investments by focusing on undervalued blue-chip and large-cap stocks, allowing for flexible responses even during economic rebounds.

The fund will be managed by professional managers in the equity management division, leveraging KB Asset Management's strong research capabilities. The research team will conduct in-depth analyses of investment targets through a dual-layered review process.

Yook Donghwi, Head of Pension WM Division at KB Asset Management, stated, "'KB New Korea Fund' is a product that actively responds to the new government's policy direction, while selectively and intensively investing in companies that align with industrial trends and have a high potential to benefit from government policies. We will collaborate with sector managers for each key industry to flexibly respond to market changes and pursue stable performance."

The 'KB New Korea Fund' will be available for subscription starting July 23 at KB Kookmin Bank, KB Securities, Hanwha Investment & Securities, and from July 25 at Korea Investment & Securities. The list of fund distributors will be expanded in the future.

This content was produced with the assistance of AI translation services.