-----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, LvSLzW4YORJTk6UsRGuD1fZE2XLs6Q5fR/p0A6ERYlHr2MicNlw0LT2vF+zL0zUs m3ydVgL7rwwwxdocXV3Hcg== 0000088053-05-001364.txt : 20051129 0000088053-05-001364.hdr.sgml : 20051129 20051129115049 ACCESSION NUMBER: 0000088053-05-001364 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050930 FILED AS OF DATE: 20051129 DATE AS OF CHANGE: 20051129 EFFECTIVENESS DATE: 20051129 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: 051230662 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 nq093005kor.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 The 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) Paul Schubert 345 Park Avenue New York, NY 10154 (Name and address of agent for service) Registrant's telephone number, including area code: (212) 454-7190 -------------- Date of fiscal year end: 06/30 ----- Date of reporting period: 9/30/05 -------- 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
Investment Portfolio as of September 30, 2005 (Unaudited) - ------------------------------------------------------------------------------------ The Korea Fund, Inc. Shares Value ($) -------------------------------- - ------------------------------------------------------------------------------------ Common Stocks 81.2% - ------------------------------------------------------------------------------------ Consumer Discretionary 12.1% Auto Components 6.6% Hankook Tire Co., Ltd. 3,021,893 39,963,702 Hyundai Mobis 237,242 19,484,082 Nexen Tire Corp. 270,761 6,499,821 Samsung Climate Control Co., Ltd. (a) 560,224 3,527,237 ----------- 69,474,842 Hotels Restaurants & Leisure 2.1% Hotel Shilla Co., Ltd. 581,047 5,172,905 Kangwon Land, Inc. 996,081 16,991,128 ----------- 22,164,033 Internet & Catalog Retail 0.4% GS Home Shopping, Inc. 38,044 3,952,055 Media 1.5% Cheil Communications, Inc. 54,153 10,379,109 Yedang Entertainment Co., Ltd.* 360,584 5,183,287 ----------- 15,562,396 Multiline Retail 1.1% Taegu Department Store Co., Ltd. (a) 904,880 11,663,283 Textiles, Apparel & Luxury Goods 0.4% BYC Co., Ltd. 26,761 4,090,445 Consumer Staples 9.0% Beverages 0.4% Hite Brewery Co., Ltd. 33,846 4,184,124 Food & Staples Retailing 3.3% Shinsegae Co., Ltd. 91,914 34,087,895 Food Products 3.2% CJ Corp. 67,424 4,762,002 Crown Confectionary Co., Ltd. 64,714 9,302,444 Nam Yang Dairy Products Co., Ltd. 22,771 12,285,647 Nhong Shim Co., Ltd. 25,880 6,708,711 ----------- 33,058,804 Tobacco 2.1% KT&G Corp. 514,085 22,267,985 Energy 5.9% Oil, Gas & Consumable Fuels S-Oil Corp. (a) 560,001 45,884,126 SK Corp. 276,717 16,043,487 ----------- 61,927,613 Financials 16.2% Banks 5.3% Jeonbuk Bank (a) 1,886,994 15,551,652 Kookmin Bank 615,438 36,271,621 Kookmin Bank (ADR) 68,312 4,047,486 ----------- 55,870,759 Capital Markets 1.3% Korea Investment Holdings Co., Ltd. 295,739 8,644,025 Samsung Securities Co., Ltd. 111,500 4,701,485 ----------- 13,345,510 Consumer Finance 0.7% LG Card Co., Ltd.* 204,221 7,730,454 Insurance 8.9% Korean Reinsurance Co. 1,112,357 10,233,471 Oriental Fire & Marine Insurance Co. 395,893 13,999,475 Samsung Fire & Marine Insurance Co., Ltd. (a) 663,110 68,630,455 ----------- 92,863,401 Health Care 0.6% Pharmaceuticals Choongwae Pharma Corp. 59,975 2,270,256 Yuhan Corp. 33,031 4,336,605 ----------- 6,606,861 Industrials 4.7% Air Freight & Logistics 1.2% Korea Express Co., Ltd.* 204,344 12,337,012 Building Products 0.2% Samwoo EMC Co., Ltd. 510,926 2,595,024 Commercial Services & Supplies 2.1% Insun ENT Co., Ltd. 255,329 3,401,124 S1 Corp. 381,954 18,411,391 ----------- 21,812,515 Construction & Engineering 0.2% Samho International Co., Ltd. 141,088 2,291,750 Electrical Equipment 0.6% KL Tech, Inc.* 91,600 2,141,869 LG.Philips LCD Co., Ltd. (ADR)* 186,147 3,827,182 ----------- 5,969,051 Machinery 0.4% Korea Iron & Steel Co., Ltd. 153,793 4,428,826 Information Technology 20.4% Communications Equipment 0.2% INTOPS Co., Ltd. 109,997 2,345,408 Computers & Peripherals 0.2% Daeyang E&C Ltd.* 251,469 1,672,443 Electronic Equipment & Instruments 3.8% Ace Digitech Co. Ltd.* 286,535 2,463,075 Dae Duck Electronics Co., Ltd. 244,297 2,434,776 Hankuk Electric Glass Co., Ltd. 96,394 3,417,900 Interflex Co., Ltd. 452,035 6,194,634 Jahwa Electronics Co., Ltd. 527,917 3,693,143 NEPES Corp.* 3,378 44,511 Samsung SDI Co., Ltd. 142,119 14,777,107 SE Co., Ltd. (b) (g) 636,950 1,916,649 Simm Tech Co., Ltd. 739,583 5,237,679 ----------- 40,179,474 Internet Software & Services 0.6% NHN Corp.* 34,115 5,802,983 Semiconductors & Semiconductor Equipment 15.5% Mtekvision Co., Ltd. 56,318 1,878,166 Phicom Corp. 717,516 5,631,486 Samsung Electronics Co., Ltd. (a) (c) 230,350 129,799,521 Seoul Semiconductor Co., Ltd. (a) 650,192 16,667,596 SFA Engineering Corp. 315,573 7,832,622 ----------- 161,809,391 Software 0.1% Ahnlab, Inc. 80,869 1,596,455 Materials 9.0% Chemicals 1.3% LG Chemical Ltd. 143,834 6,188,928 Samsung Fine Chemicals Co., Ltd. 287,682 7,347,126 ----------- 13,536,054 Construction Materials 0.4% Sungshin Cement Co., Ltd. 186,957 4,246,172 Containers & Packaging 0.2% Youlchon Chemical Co., Ltd. 237,795 2,575,068 Metals & Mining 7.1% Dongkuk Steel Mill Co., Ltd. 792,585 16,292,236 POSCO (a) 254,977 57,177,401 SODIFF Advanced Materials Co., Ltd. 35,227 636,348 ----------- 74,105,985 Telecommunication Services 3.3% Wireless Telecommunication Services SK Telecom Co., Ltd. 174,924 33,945,482 - ------------------------------------------------------------------------------------ Total Common Stocks (Cost $249,636,658) 850,099,553 - ------------------------------------------------------------------------------------ Preferred Stocks 17.7% - ------------------------------------------------------------------------------------ Consumer Discretionary 7.5% Automobiles Hyundai Motor Co. 1,022,120 51,914,097 Hyundai Motor Co. (2nd) 499,954 26,447,015 ----------- 78,361,112 Consumer Staples 1.1% Food Products CJ Corp. 201,178 8,290,037 CJ Corp. (2nd) 34,073 1,959,157 CJ Corp. (3rd) (Convertible) 20,446 1,136,433 ----------- 11,385,627 Energy 0.6% Oil, Gas & Consumable Fuels S-Oil Corp. 105,626 6,771,806 Financials 2.4% Diversified Financial Services 0.5% Daishin Securities Co., Ltd. 450,481 4,964,573 Insurance 1.9% Samsung Fire & Marine Insurance Co., Ltd. 361,365 20,258,603 Information Technology 5.7% Electronic Equipment & Instruments 0.1% Samsung SDI Co., Ltd. 23,231 1,504,950 Semiconductors & Semiconductor Equipment 5.6% Samsung Electronics Co., Ltd. (c) 134,164 58,371,305 Materials 0.4% Chemicals LG Chemical Ltd. 130,644 3,906,174 - ------------------------------------------------------------------------------------ Total Preferred Stocks (Cost $26,166,910) 185,524,150 Principal Amount ($) Value ($) --------------------------------- - ------------------------------------------------------------------------------------ Convertible Bond 0.0% - ------------------------------------------------------------------------------------ Consumer Staples Haitai Confectionery Loan Certificates, Zero Coupon, 9,577,892 8,149 11/28/2009 (b) (d) (e) (Cost $0) Shares Value ($) --------------------------------- - ------------------------------------------------------------------------------------ Rights 0.0% - ------------------------------------------------------------------------------------ Information Technology Nepes Corp.* (Cost $1,263) 568 2,050 - ------------------------------------------------------------------------------------ Cash Equivalents 0.1% - ------------------------------------------------------------------------------------ Scudder Cash Management QP Trust, 3.74% (f) 807,785 807,785 (Cost $807,785) % of Value Net Assets ($) ------------------------- Total Investment Portfolio (Cost $ 276,612,616) 99.0 1,036,441,687 Other Assets and Liabilities, Net 1.0 10,468,151 --------------------------------------------------------------------------------- Net Assets 100.0 1,046,909,838 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) 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 September 30, 2005 with companies which are or were affiliates is as follows: Realized Dividend Purchase Sales Gain/ Income Affiliate Common Shares Cost ($) Cost ($) (Loss) ($) ($)+ Value ($) - ------------------------------------------------------------------------------------------------------------------ JeonBuk Bank 1,886,994 - 3,300,224 2,590,158 - 15,551,652 - ------------------------------------------------------------------------------------------------------------------ Posco 254,977 - 9,272,272 11,195,099 151,976 57,177,401 - ------------------------------------------------------------------------------------------------------------------ Samsung Climate 560,224 - 934,798 633,879 - 3,527,237 Control - ------------------------------------------------------------------------------------------------------------------ Samsung 230,350 - 4,259,952 56,161,027 - 129,799,521 Electronics Co. Ltd. - ------------------------------------------------------------------------------------------------------------------ Samsung Fire & 663,110 - 2,178,809 5,565,729 - 68,630,455 Marine Insurance CO. Ltd - ------------------------------------------------------------------------------------------------------------------ S-Oil Corp 560,001 - 310,314 318,841 503,439 45,884,126 - ------------------------------------------------------------------------------------------------------------------ Seoul 650,192 - 4,529,701 4,014,409 - 16,667,596 Semiconductor Co. Ltd. - ------------------------------------------------------------------------------------------------------------------ Taegu Department 904,880 - 2,712,881 1,903,540 - 11,663,283 Store Co. Ltd - ------------------------------------------------------------------------------------------------------------------ 65,498,951 82,382,682 655,415 349,556,686 - ------------------------------------------------------------------------------------------------------------------ + Net of foreign taxes withheld (b) Securities valued at fair value by management and approved in good faith following procedures approved by the Directors, amounted to $1,924,798 (0.2% of net assets at September 30, 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 September 30, 2005 aggregated $1,616,637. The securities may also have certain restrictions as to resale. (c) At September 30, 2005, 18.0% of the Fund's investment portfolio is invested in Samsung Electronics Co., Ltd. (d) Company in restructuring process, principal only subject to repayment. (e) Amount stated in Korean Won. (f) Scudder Cash Management QP Trust is managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end. (g) The Fund may purchase securities that are subject to legal or contractual restrictions on resale ("restricted securities"). Restricted securities are securities which have not been registered with the Securities and Exchange Commission under the Securities Act of 1933. The fund may be unable to sell a restricted security and it may be more difficult to determine a market value for a restricted security. Moreover, if adverse market conditions were to develop during the period between the Fund's decision to sell a restricted security and the point at which the Fund is permitted or able to sell such security, the Fund might obtain a price less favorable than the price that prevailed when it decided to sell. This investment practice, therefore, could have the effect of increasing the level of illiquidity of the Fund. The future value of these securities is uncertain and there may be changes in the estimated value of these securities. A Shareholder of SE Co. Ltd. has given the Fund a put option at cost, payable on demand until it has an initial public offering. Information concerning the private placement security at September 30, 2005 is as follows: As a % of Net Restricted Security Acquisition Date Cost ($) Value ($) Assets - ------------------------------------------------------------------------------------------------------------ SE Co., Ltd. 12/22/2000 1,616,637 1,916,649 0.2 - ------------------------------------------------------------------------------------------------------------ ADR: American 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/Vincent J. Esposito ------------------------- Vincent J. Esposito President Date: November 22, 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/Vincent J. Esposito ------------------------- Vincent J. Esposito President Date: November 22, 2005 By: /s/Paul Schubert ------------------------- Paul Schubert Chief Financial Officer and Treasurer Date: November 22, 2005 EX-99.CERT 2 cert.txt CERTIFICATIONS CERTIFICATIONS I, Vincent J. Esposito, 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/Vincent J. Esposito ------------------------- Vincent J. Esposito President Date: November 22, 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 and Treasurer Date: November 22, 2005 -----END PRIVACY-ENHANCED MESSAGE-----