Why was the minimum investment for private funds raised to KRW 300 million?

As a follow-up to the measures introduced after the 2019 derivative-linked fund (DLF) crisis, the FSCMA Enforcement Decree was amended to raise the minimum private fund investment for general investors from KRW 100 million to KRW 300 million or more.

The amendment took effect on February 9, 2021. The aim is to keep products that are hard to understand or carry a high risk of loss from being sold widely to general investors in the form of private funds.