-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FflX+kZcDOduG6CYYlRQd9pib06NCCqnOMe7/Xnl+gVwxpOgLtyIhv2QJRmtHQbU 74dIsl8mbpleQBPBhZmZTg== 0000088053-05-000589.txt : 20050611 0000088053-05-000589.hdr.sgml : 20050611 20050527111923 ACCESSION NUMBER: 0000088053-05-000589 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050331 FILED AS OF DATE: 20050527 DATE AS OF CHANGE: 20050527 EFFECTIVENESS DATE: 20050527 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KOREA FUND INC CENTRAL INDEX KEY: 0000748691 IRS NUMBER: 133226146 STATE OF INCORPORATION: MD FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-04058 FILM NUMBER: 05862045 BUSINESS ADDRESS: STREET 1: 345 PARK AVE STREET 2: C/O DEUTSCHE ASSET MANAGEMENT CITY: NEW YORK STATE: NY ZIP: 10154 BUSINESS PHONE: 617-295-3986 MAIL ADDRESS: STREET 1: DEUTSCHE ASSET MANAGEMENT STREET 2: TWO INTERNATIONAL FUND CITY: BOSTON STATE: MA ZIP: 02110 N-Q 1 nq033105kor.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY ------------------------------- Investment Company Act file number 811-4058 Korea Fund, Inc. ---------------- (Exact name of registrant as specified in charter) 345 Park Avenue New York, NY 10154 ------------------ (Address of principal executive offices) (Zip code) Charles Rizzo Two International Place Boston, Massachusetts 02110 --------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (617) 295-3488 -------------- Date of fiscal year end: 06/30 ----- Date of reporting period: 3/31/05 -------- Form N-Q is to be used by registered management investment companies, other than small business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-4). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. SCHEDULE OF INVESTMENTS
The Korea Fund, Inc. Investment Portfolio as of March 31, 2005 (unaudited) - --------------------------------------------------------------------------------------------------------------------------- Shares Value ($) ----------------------------------------- Common Stocks 80.8% Consumer Discretionary 12.8% Auto Components 4.4% Halla Climate Control Corp. 600,000 5,252,585 Hankook Tire Co., Ltd. 4,464,307 49,896,489 ---------- 55,149,074 Automobiles 0.7% Nexen Tire Corp. 400,000 9,059,577 ---------- Hotels Restaurants & Leisure 2.2% Hotel Shilla Co., Ltd. 858,391 5,629,625 Kangwon Land, Inc. 1,471,530 22,025,855 ---------- 27,655,480 Internet & Catalog Retail 0.3% LG Home Shopping, Inc. 56,200 4,360,965 ---------- Media 0.8% Cheil Communications, Inc. 57,600 9,755,982 ---------- Multiline Retail 4.2% Shinsegae Co., Ltd. 135,787 41,919,472 Taegu Department Store Co., Ltd. (b) 1,336,800 11,847,563 ---------- 53,767,035 Textiles, Apparel & Luxury Goods 0.2% BYC Co., Ltd. (b) 39,530 2,355,062 ---------- Consumer Staples 5.5% Beverages 1.6% Hite Brewery Co., Ltd. 50,000 4,825,209 Nam Yang Dairy Products Co., Ltd. (b) 33,641 15,818,393 ---------- 20,643,602 Food Products 1.9% CJ Corp. 99,606 7,081,786 Crown Confectionary Co., Ltd. 46,200 6,096,307 Nhong Shim Co., Ltd. 38,229 10,917,193 ---------- 24,095,286 Tobacco 2.0% KT&G Corp. 144A (GDR) 413,800 6,695,284 KT&G Corp. 552,570 17,956,484 ---------- 24,651,768 Energy 6.9% Oil & Gas 6.9% S-Oil Corp. 827,300 64,196,199 SK Corp. 408,800 24,153,619 ---------- 88,349,818 Financials 12.7% Banks 4.5% Jeonbuk Bank (b) 2,787,695 12,133,542 Kookmin Bank (ADR)* 100,917 4,505,944 Kookmin Bank * 909,198 40,602,786 ---------- 57,242,272 Diversified Financial Services 0.7% LG Card Co., Ltd.* 171,600 4,883,545 Samsung Securities Co., Ltd. 164,720 4,136,249 ---------- 9,019,794 Insurance 7.5% Korean Reinsurance Co. 1,643,310 8,948,798 Oriental Fire & Marine Insurance Co. (b) 584,860 11,403,474 Samsung Fire & Marine Insurance Co., Ltd. 979,625 74,183,321 ---------- 94,535,593 Health Care 0.5% Pharmaceuticals 0.5% Choongwae Pharma Corp. 88,600 2,146,292 Yuhan Corp. 48,798 4,324,786 ---------- 6,471,078 Industrials 7.5% Commercial Services & Supplies 2.3% Insun ENT Co., Ltd. 377,203 7,224,617 S1 Corp. 564,270 22,670,818 ---------- 29,895,435 Electrical Equipment 0.4% Ace Digitech Co. Ltd.* 423,300 5,002,068 Industrial Conglomerates 3.0% Anycell, Inc. (b)(c)(d)(g) 1,250,000 0 Daeyang E&C Ltd.* 1,153,948 4,170,349 Hyundai Mobis 350,480 22,847,638 SFA Engineering Corp. (b) 466,200 10,742,570 ---------- 37,760,557 Machinery 0.4% Samsung Climate Control Co., Ltd. (b) 827,630 4,832,935 ---------- Trading Companies & Distributors 0.6% Jahwa Electronics Co., Ltd. 779,900 7,649,241 ---------- Transportation Infrastructure 0.8% Korea Express Co., Ltd.* 301,880 10,404,530 ---------- Information Technology 20.0% Communications Equipment 0.2% INTOPS Co., Ltd. 162,500 3,344,412 ---------- Computers & Peripherals 0.2% Ahnlab, Inc.* 119,466 2,105,801 ---------- Electronic Equipment & Instruments 4.0% Dae Duck Electronics Co., Ltd. 360,901 2,946,203 Hankuk Electric Glass Co., Ltd. 142,400 6,667,770 Interflex Co., Ltd. (b) 667,800 11,245,081 Mtekvision Co., Ltd.* 83,200 2,461,999 Samsung SDI Co., Ltd. 209,956 21,605,516 SE Co., Ltd. (b)(c)(d) 636,950 1,969,496 Simm Tech Co., Ltd.* 631,213 3,717,040 ---------- 50,613,105 Semiconductors & Semiconductor Equipment 15.6% NEPES Corp.* 4,990 50,121 Phicom Corp.* (b) 1,060,000 5,323,486 Samsung Electronics Co., Ltd. (h) 340,299 168,222,647 Seoul Semiconductor Co., Ltd. (b) 1,003,900 24,220,138 ---------- 197,816,392 Materials 11.5% Chemicals 1.4% LG Chemical Ltd. 212,486 8,578,952 Samsung Fine Chemicals Co., Ltd. 425,000 8,663,220 ---------- 17,242,172 Construction Materials 0.4% Sungshin Cement Co., Ltd. 276,200 5,330,891 ---------- Containers & Packaging 0.4% Youlchon Chemical Co., Ltd. 351,300 4,497,194 ---------- Metals & Mining 9.3% Dongkuk Steel Mill Co., Ltd. 1,170,900 22,138,139 Korea Iron & Steel Co., Ltd. 227,200 5,705,170 POSCO 443,000 87,683,899 Samwoo EMC Co., Ltd. (b) 754,800 3,114,340 ---------- 118,641,548 Telecommunication Services 3.4% Wireless Telecommunication Services SK Telecom Co., Ltd. 258,420 43,515,332 ---------- Total Common Stocks (Cost $336,852,778) 1,025,763,999 ------------- Principal Amount ($) Value ($) Convertible Bond 0.0% Consumer Staples Haitai Confectionery Loan Certificates, Zero Coupon, 11/28/2009 (c)(e)(f) 11,658,888 10,352 (Cost $0) ---------- Shares Value ($) Preferred Stocks 15.6% Consumer Discretionary 5.6% Automobiles Hyundai Motor Co. (GDR) 144A 3,020,000 45,843,600 Hyundai Motor Co. (2nd) 738,593 25,892,576 ---------- 71,736,176 Consumer Staples 1.4% Food Products CJ Corp. 297,200 12,965,002 CJ Corp. (2nd) 50,335 2,760,866 CJ Corp. (3rd) (convertible) 30,201 1,582,170 ---------- 17,308,038 Energy 0.7% Oil & Gas S-Oil Corp. 156,040 8,359,011 ---------- Financials 2.2% Diversified Financial Services 0.5% Daishin Securities Co., Ltd. 665,500 6,618,956 ---------- Insurance 1.7% Samsung Fire & Marine Insurance Co., Ltd. 533,850 21,238,346 ---------- Information Technology 5.3% Electronic Equipment & Instruments 0.2% Samsung SDI Co., Ltd. 34,318 2,264,211 ---------- Semiconductors & Semiconductor Equipment 5.1% Samsung Electronics Co., Ltd. (h) 198,201 65,091,121 ---------- Materials 0.4% Chemicals LG Chemical Ltd. 193,003 5,464,142 ---------- Total Preferred Stocks (Cost $38,433,288) 198,080,001 ----------- Cash Equivalents 0.2% Scudder Cash Management QP Trust, 2.69% (a) (Cost $2,471,595) 2,471,595 2,471,595 ---------- % of Net Assets Value ($) ---------- --------- Total Investment Portfolio (Cost $377,757,661) 96.6 1,226,325,947 Other Assets and Liabilities, Net 3.4 42,927,607 ------------- Net Assets 100.0 1,269,253,554 =============
For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements. * Non-income producing security. (a) Scudder Cash Management QP Trust is managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end. (b) Affiliated issuers. An affiliated issuer is a company in which the Fund has ownership of at least 5% of the voting securities. A summary of the Fund's transactions during the nine months ended March 31, 2005 with companies which are or were affiliates is as follows:
Common/ Realized Preferred Purchase Sales Gain/ Dividend Affiliate Shares Cost($) Cost($) (Loss)($) Income($)+ Value($) - --------------------------------------------------------------------------------------------------------------------------- Anycell, Inc. 1,250,000 - - - - - - --------------------------------------------------------------------------------------------------------------------------- BYC Co., Ltd. 39,530 - - - 22,185 2,355,062 - --------------------------------------------------------------------------------------------------------------------------- Co., Ltd. 1,003,900 4,775,077 - - 237,432 24,220,138 - --------------------------------------------------------------------------------------------------------------------------- Control Co., Ltd. 827,630 - - - 19,906 4,832,935 Interflex Co., Ltd. 667,800 8,039,630 - - 80,309 11,245,081 - --------------------------------------------------------------------------------------------------------------------------- Jeonbuk Bank 2,787,695 - - - 325,482 12,133,542 Marine Insurance Co. 584,860 - - - - 11,403,474 - --------------------------------------------------------------------------------------------------------------------------- Nam Yang Diary Oriental Fire & - --------------------------------------------------------------------------------------------------------------------------- Phicom Corp. 1,060,000 4,401,309 84,983 5,323,486 - --------------------------------------------------------------------------------------------------------------------------- Products Co., Ltd. 33,641 - 1,152,104 2,847,366 33,931 15,818,392 - --------------------------------------------------------------------------------------------------------------------------- Samsung Climate - --------------------------------------------------------------------------------------------------------------------------- Samwoo EMC Co., Ltd. 754,800 2,092,375 - - 60,514 3,114,340 - --------------------------------------------------------------------------------------------------------------------------- SE Co., Ltd. 636,950 - - - - 1,969,496 Seoul Semiconductor - --------------------------------------------------------------------------------------------------------------------------- SFA Engineering Corp. 466,200 5,302,292 280,324 10,742,570 - --------------------------------------------------------------------------------------------------------------------------- Store Co., Ltd. 1,336,800 4,316,669 - - - 11,847,563 Taegu Department - --------------------------------------------------------------------------------------------------------------------------- Telephus Co., Ltd.++ - - 2,919,708 (3,206,483) - --------------------------------------------------------------------------------------------------------------------------- 28,927,352 4,071,812 (359,117) 1,145,066 115,006,079 - ---------------------------------------------------------------------------------------------------------------------------
+ Net of foreign taxes withheld. ++ At March 31, 2005 the fund no longer held Telephus Co., Ltd. (c) Securities valued at fair value by management and approved in good faith following procedures approved by the Directors, amounted to $1,979,848 (0.2% of net assets at March 31, 2005). Their values have been estimated by management in the absence of readily ascertainable market values. However, because of the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the securities existed, and the difference could be material. The cost of these securities at March 31, 2005 aggregated $3,637,411. The securities may also have certain restrictions as to resale. (d) The Fund may purchase securities that are subject to legal or contractual restrictions on resale ("restricted securities"). Restricted securities are securities which have not been registered with the Securities and Exchange Commission under the Securities Act of 1933. The Fund may be unable to sell a restricted security and it may be more difficult to determine a market value for a restricted security. Moreover, if adverse market conditions were to develop during the period between the Fund's decision to sell a restricted security and the point at which the Fund is permitted or able to sell such security, the Fund might obtain a price less favorable than the price that prevailed when it decided to sell. This investment practice, therefore, could have the effect of increasing the level of illiquidity of the Fund. The issuer of SE Co., Ltd. has given the Fund a put option at cost, payable on demand until it has an initial public offering. Information concerning such private placement securities at March 31, 2005 is as follows:
Restricted Acquisition Value as % of Securities Date Cost ($) Value ($) Net Assets - --------------------------------------------------------------------------------------------------------- Anycell, Inc. 12/22/2000 2,020,774 - - - --------------------------------------------------------------------------------------------------------- SE Co., Ltd. 12/22/2000 1,616,637 1,969,496 0.2% - --------------------------------------------------------------------------------------------------------- Total Restricted Securities 3,637,411 1,969,496 0.2% - ---------------------------------------------------------------------------------------------------------
(e) Company in restructuring process, principal only subject to repayment. (f) Principal amount stated in Koream Won. (g) Company is in process of liquidation. (h) At March 31, 2005, 19.1% of the Fund's investment portfolio is invested in Samsung Electronics Co., Ltd. 144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. ADR: American Depositary Receipt GDR: Global Depositary Receipt SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant: The Korea Fund, Inc. By: /s/Julian Sluyters -------------------------------------------- Julian Sluyters Chief Executive Officer Date: May 26, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Registrant: The Korea Fund, Inc. By: /s/Julian Sluyters -------------------------------------------- Julian Sluyters Chief Executive Officer Date: May 26, 2005 By: /s/Paul Schubert ----------------------------------- Paul Schubert Chief Financial Officer Date: May 26, 2005 EX-99.CERT 2 cert-kor.txt CERTIFICATIONS I, Julian Sluyters, certify that: 1. I have reviewed this report on Form N-Q of The Korea Fund, Inc. 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Registrant: The Korea Fund, Inc. By: /s/Julian Sluyters -------------------------------------------- Julian Sluyters Chief Executive Officer Date: May 26, 2005 CERTIFICATIONS I, Paul Schubert, certify that: 1. I have reviewed this report on Form N-Q of The Korea Fund, Inc. 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Registrant: The Korea Fund, Inc. By: /s/Paul Schubert ----------------------------------- Paul Schubert Chief Financial Officer Date: May 26, 2005 -----END PRIVACY-ENHANCED MESSAGE-----