How does the separate IPO allocation for high-yield funds differ from that for KOSDAQ venture funds?

Under Korea Financial Investment Association regulations, high-risk high-yield investment trusts (high-yield funds) that commit to a lock-up of at least 15 days receive at least 5% of offered shares (at least 10% for KOSDAQ IPOs), while venture company investment trusts meeting the same condition receive at least 30% of KOSDAQ IPO shares.

High-yield funds are bond-focused funds that must hold at least a certain proportion of non-investment-grade bonds and the like, whereas KOSDAQ venture funds must meet investment ratios for shares and mezzanine securities of venture companies and the like. Because the assets required to qualify for the benefit differ, the nature of the risks differs too.