How are high-yield funds (high-risk high-yield investment trusts) related to IPO shares?

A high-risk high-yield investment trust is a fund that holds at least a certain proportion of non-investment-grade bonds and the like, and under Korea Financial Investment Association regulations it can receive priority allocation of at least 5% of IPO shares (at least 10% for KOSDAQ).

To receive priority allocation, it must commit to holding the shares for at least 15 days and meet the holding ratio requirements. Because it invests in non-investment-grade bonds, its high credit risk should also be taken into account.