NEW YORK, April 28, 2008 (PRIME NEWSWIRE) -- The Korea Fund, Inc. (NYSE:KF) (the "Fund") announced today that, in accordance with its tender offer for up to 4,303,210 shares of its issued and outstanding shares of common stock, which expired at midnight, Eastern time, on Monday, April 21, 2008, the Fund has accepted, after adjusting for fractional shares in accordance with the terms of the offer, 4,303,210 shares in exchange for a pro-rata portion of the Fund's portfolio securities at a price equal to 98% of the net asset value per share determined as of the close of the New York Stock Exchange on Tuesday, April 22, 2008. These shares represented approximately 15% of the Fund's outstanding shares.
Approximately 8,816,720 shares were properly tendered and not withdrawn by April 21, 2008, the final date for withdrawals. In accordance with the terms of the tender offer, the Fund is purchasing shares on a pro-rata basis, disregarding fractions, from all tendering shareholders, with the exception of tenders for 99 shares or less, which the Fund will purchase in full in accordance with the terms of the offer. Accordingly, on a pro rata basis, except as noted above, approximately 48.8% of the shares for each stockholder who properly tendered their shares has been accepted for payment. The Fund will issue a press release to advise tendering shareholders that the transfer of securities has been accomplished.
The Fund released today its Schedule of Investments at April 22, 2008 comprising the proceeds (excluding cash) that shareholders who have chosen to participate in the Fund's in-kind tender offer will receive. The market value of the portfolio securities listed below may fluctuate prior to the actual distribution of the portfolio securities.
The Korea Fund, Inc. is a non-diversified, closed-end investment company that seeks long-term capital appreciation through investments in securities, primarily in equity securities, of Korean companies. Its shares are listed on the New York Stock Exchange under the symbol "KF."
RCM Capital Management LLC and RCM Asia Pacific Limited are the Fund's investment manager and sub-adviser, respectively. Investment in closed-end funds involves risks. Additional risks are associated with international investing, such as currency fluctuation, government regulations, economic changes and differences in liquidity, which may increase the volatility of your investment. Foreign security markets generally exhibit greater price volatility and are less liquid than the U.S. market. Additionally, this Fund focuses its investments in certain geographical regions, thereby increasing its vulnerability to developments in that region. All of these factors potentially subject the Fund's shares to greater price volatility. The net asset value of the Fund will fluctuate with the value of the underlying securities. Closed-end funds trade on their market value, not net asset value, and closed-end funds often trade at a discount to their net asset value.
The Fund's daily New York Stock Exchange closing price and net asset value per share, as well as other information, including updated portfolio statistics and performance, are available at www.thekoreafund.com or by calling the Fund's shareholder servicing agent at (800) 331-1710.
Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund's performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement its operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.
This announcement is not an offer to purchase or the solicitation of an offer to sell shares of the Fund or a prospectus, circular or representation intended for use in the purchase or sale of Fund shares.
Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.
The Korea Fund, Inc. Schedule of Investments at April 22, 2008 (Unaudited) --------------------------------------------------------------------- Security Name Security Type Shares Market Value --------------------------------------------------------------------- CHEIL COMMUNICATIONS, INC. COMMON STOCK 50,172 13,281,977 --------------------------------------------------------------------- SAMSUNG FIRE & MARINE CORP. COMMON STOCK 69,805 14,330,116 --------------------------------------------------------------------- KT & G CORPORATION COMMON STOCK 343,794 27,190,307 --------------------------------------------------------------------- S1 CORP COMMON STOCK 224,668 13,536,874 --------------------------------------------------------------------- DAEWOO SHIPBUILDING & MARINE ENGINEERING CO. COMMON STOCK 438,453 20,295,590 --------------------------------------------------------------------- SK TELECOM CO. COMMON STOCK 49,202 9,516,329 --------------------------------------------------------------------- DACOM CORP COMMON STOCK 523,783 10,219,904 --------------------------------------------------------------------- DONGKUK STEEL MILL CO. COMMON STOCK 263,105 11,454,948 --------------------------------------------------------------------- HANA TOUR SERVICE, INC. COMMON STOCK 177,783 10,507,122 --------------------------------------------------------------------- DAEWOO INTERNATIONAL CORP. COMMON STOCK 545,760 19,681,349 --------------------------------------------------------------------- SHINHAN FINANCIAL GROUP CO. COMMON STOCK 674,181 36,720,019 --------------------------------------------------------------------- HYUNDAI INDUSTRIAL & DEVELOPMENT CO. COMMON STOCK 351,076 25,288,043 --------------------------------------------------------------------- KOOKMIN BANK COMMON STOCK 137,699 8,816,574 --------------------------------------------------------------------- SFA ENGINEERING CORP. COMMON STOCK 202,404 13,581,567 --------------------------------------------------------------------- HYUNDAI HEAVY INDUSTRIES CO. COMMON STOCK 102,531 37,903,067 --------------------------------------------------------------------- HYNIX SEMICONDUCTOR COMMON STOCK 639,920 18,837,990 --------------------------------------------------------------------- HYUNDAI ENGINEERING & CONSTRUCTION COMMON STOCK 299,020 27,854,234 --------------------------------------------------------------------- KCC CORP. COMMON STOCK 39,288 17,427,187 --------------------------------------------------------------------- KOREA EXCHANGE BANK COMMON STOCK 1,470,340 21,740,954 --------------------------------------------------------------------- KOREA EXPRESS CO. COMMON STOCK 127,604 13,421,061 --------------------------------------------------------------------- KT CORPORATION COMMON STOCK 347,160 16,554,381 --------------------------------------------------------------------- LG CORP COMMON STOCK 163,645 13,377,962 --------------------------------------------------------------------- GS ENGINEERING & CONSTRUCTION CORP. COMMON STOCK 165,859 26,386,841 --------------------------------------------------------------------- NHN CORP COMMON STOCK 78,746 18,017,697 --------------------------------------------------------------------- KOREA INVESTMENT HOLDINGS CO. COMMON STOCK 240,109 12,524,294 --------------------------------------------------------------------- POSCO COMMON STOCK 80,882 37,658,482 --------------------------------------------------------------------- SAMSUNG C+T COMMON STOCK 302,439 21,386,662 --------------------------------------------------------------------- SAMSUNG ELECTRONICS CO. COMMON STOCK 104,700 70,725,868 --------------------------------------------------------------------- SAMSUNG TECHWIN CO. COMMON STOCK 132,640 7,109,654 --------------------------------------------------------------------- SHINSEGAE CO. COMMON STOCK 30,780 19,180,238 --------------------------------------------------------------------- YUHAN CORP COMMON STOCK 84,414 18,016,299 --------------------------------------------------------------------- LG PHILIPS LCD CO. COMMON STOCK 230,181 10,361,906 --------------------------------------------------------------------- MEGASTUDY CO. COMMON STOCK 18,052 6,747,338 --------------------------------------------------------------------- HANA FINANCIAL HOL COMMON STOCK 263,990 11,625,410 --------------------------------------------------------------------- ON*MEDIA CORPORATION COMMON STOCK 1,024,140 4,471,166 --------------------------------------------------------------------- SAMSUNG CO. COMMON STOCK 342,426 19,123,544 --------------------------------------------------------------------- SK ENERGY CO. COMMON STOCK 98,070 11,855,748 ---------------------------------------------------------------------