A charge for leaving a Korean fund within a set period
A redemption fee is paid by an investor who cashes out of a fund within the period set in its rules, charged on the amount redeemed or the gain. The fee goes into the fund's own assets, not to the seller or the manager (Capital Markets Act, Article 236). It keeps the cost of early leavers from falling on those who stay. The redemption price is, as a rule, the price calculated after the day you ask to redeem.
Redeeming ₩1 million with a 1% fee leaves ₩10,000 in the fund.
For learning, not investment advice. Decisions are your own.
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