On February 25, 2026, DB Asset Management (DB자산운용) unveiled a bold new financial product aimed squarely at Korea’s fast-evolving tech landscape: the 'DB KOSDAQ Mega Trend Target Conversion Equity Investment Trust [Mixed]', a fund that zeros in on key KOSDAQ-listed companies expected to benefit from the government’s flagship economic initiative, the 국민성장펀드 (National Growth Fund). This launch, reported by both Asia Economy and FETV, signals a strategic alignment between private asset managers and sweeping government policy, with potentially significant implications for investors and the broader Korean economy.
The 국민성장펀드 is no ordinary government program. It’s a massive, 150 trillion KRW (about $112 billion USD) commitment to turbocharging Korea’s most promising advanced industries: artificial intelligence (AI), semiconductors, mobility, and biotechnology. According to Asia Economy, this fund is a central pillar of the current administration’s economic agenda, aiming to funnel unprecedented resources into sectors that promise not just growth, but transformation.
DB Asset Management’s new fund is designed to ride this policy wave. As explained by company representatives and detailed in FETV, the fund will concentrate on four so-called "high-synergy" sectors that mirror the government’s priorities. These include:
1. AI and robotics, focusing on companies within the software and parts value chain.
2. Semiconductors, displays, and secondary batteries, where firms benefit from ultra-low interest loans to reduce financing costs.
3. Bio-healthcare, fueled by mega-project funding and the activation of clinical trials and mergers and acquisitions.
4. K-content, with investments driven by technology and intellectual property assets.
But how does the fund actually work? DB Asset Management has introduced a rigorous, three-step filtering process to identify stocks most likely to benefit from the government’s largesse. According to both Asia Economy and FETV, the process begins with a policy fit analysis—does the company align with government priorities? Next, it looks at performance metrics, and finally, it examines supply and demand dynamics in the market. Only after passing all three filters are companies considered for investment.
Once selected, the fund applies what’s known as a Core-Satellite strategy. In plain English, this means 60% of assets are allocated to "core" stocks—high-quality, stable companies with strong performance, valuable patents, or critical national strategic technologies, especially in semiconductors and biotech. These are the bedrock of the portfolio, providing stability and a foundation for growth. The remaining 30% goes to "satellite" companies—fast-growing, scaling firms in AI, robotics, and content creation, where the potential for outsize returns is higher, though so is the risk. This dual approach aims to balance the need for steady returns with the allure of high-growth opportunities.
Risk management is baked into the fund’s design. As outlined by both news sources, the fund is structured as a "target conversion" product. Once the fund achieves its target return—a 10% gain, marked by the A-class price reaching 1,100 KRW—it automatically shifts gears. The equity allocation is reduced, and assets are moved into short-term domestic bonds. This mechanism is intended to lock in gains and shield investors from the volatility that often rocks equity markets, especially in the tech-heavy KOSDAQ sector.
DB Asset Management’s timing is no accident. As a company spokesperson told Asia Economy, "We expect that from 2026, the structural undervaluation of the KOSDAQ market will be resolved as policy funds are actively deployed." The message is clear: with the government’s massive investment program just ramping up, there’s a window of opportunity for early movers to snap up undervalued KOSDAQ stocks before institutional money floods in and prices adjust. The spokesperson added, "It will be a good investment opportunity to preemptively secure undervalued quality KOSDAQ companies in the early stage of policy momentum, before institutional investors’ funds flow in."
The fund’s subscription period runs from February 25 through March 6, 2026, with the official launch and operation starting on March 6. Investors can access the fund through a wide array of financial institutions, including Korean Investment & Securities, Daishin Securities, Shinhan Securities, Kyobo Securities, Meritz Securities, Samsung Life Insurance, IBK Securities, IM Securities, and DB Securities. This broad distribution network reflects the fund’s ambition to attract a diverse investor base, from seasoned market hands to retail investors looking for exposure to Korea’s next big growth story.
For those new to the KOSDAQ, it’s Korea’s version of the NASDAQ—a stock exchange teeming with tech-driven, high-growth companies. Historically, KOSDAQ stocks have traded at a discount compared to their global peers, partly due to market structure and partly due to risk perceptions. The hope, as articulated by DB Asset Management and echoed in FETV, is that the influx of government capital and targeted private investment will help close this valuation gap, making KOSDAQ a more attractive playground for both domestic and international investors.
What’s particularly notable is the fund’s focus on sectors that are not just trendy, but strategically vital for Korea’s long-term competitiveness. AI and robotics are at the heart of the Fourth Industrial Revolution, while semiconductors are a backbone of the global digital economy. Bio-healthcare, especially post-pandemic, is a sector with enormous growth potential, and K-content—think K-pop, gaming, and digital media—has already proven its global appeal. By targeting these areas, the fund isn’t just chasing returns; it’s betting on the future shape of Korea’s economy.
Of course, no investment is without risk. The fund’s target conversion structure is designed to cushion investors from market shocks, but rapid changes in government policy, global tech trends, or financial markets could still impact performance. Still, by aligning closely with government strategy and employing a disciplined selection process, DB Asset Management hopes to tilt the odds in investors’ favor.
For Korean investors—especially those fatigued by years of undervalued tech stocks and market volatility—this new fund offers a chance to get in on the ground floor of what could be a significant market re-rating. With policy winds at its back and a carefully crafted strategy, the 'DB KOSDAQ Mega Trend Target Conversion Equity Investment Trust' stands out as a timely and potentially transformative offering in the 2026 investment landscape.
As the government’s 150 trillion KRW growth fund gears up for deployment, all eyes will be on how products like this shape the fortunes of Korea’s tech sector—and whether the long-awaited KOSDAQ revaluation finally arrives.