UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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OMB Number: 3235-0578
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FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act File Number: 811-04058
Registrant Name: The Korea Fund, Inc.
Address of Principal Executive Offices: 4 Embarcadero Center, 30th Floor, San Francisco, CA 94111
Name and Address of Agent for Service: Brian S. Shlissel – 1345 Avenue of the Americas, New York, New York 10105
Registrant’s telephone number, including area code: 212-739-3369
Date of Fiscal Year End: June 30, 2008
Date of Reporting Period: March 31, 2008
Form N-Q is to be used by the registered management investment company, other than a small business investment company registered on Form N-5 (§§ 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 30b 1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). 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 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. § 3507.
Item 1. Schedule of Investments
The Korea Fund, Inc. Schedule of Investments
March 31, 2008 (unaudited)
Shares |
|
|
| Value* |
|
|
|
|
|
COMMON STOCK—95.5% |
|
| ||
Capital Markets—1.5% |
|
| ||
225,692 |
| Korea Investment Holdings Co., Ltd. (a) |
| $10,648,058 |
|
|
|
|
|
Chemicals—2.4% |
|
| ||
35,918 |
| KCC Corp. (a) |
| 16,659,756 |
|
|
|
|
|
Commercial Banks—10.9% |
|
| ||
263,990 |
| Hana Financial Group, Inc. |
| 10,820,162 |
205,061 |
| Kookmin Bank |
| 11,509,561 |
1,470,340 |
| Korea Exchange Bank |
| 19,655,300 |
674,181 |
| Shinhan Financial Group Co., Ltd. |
| 35,616,268 |
|
|
|
| 77,601,291 |
|
|
|
|
|
Commercial Services & Supplies—1.7% |
|
| ||
224,668 |
| S1 Corp. |
| 11,681,914 |
|
|
|
|
|
Construction & Engineering—10.1% |
|
| ||
146,829 |
| GS Engineering & Construction Corp. |
| 21,667,769 |
351,076 |
| Hyundai Development Co. |
| 24,138,999 |
299,020 |
| Hyundai Engineering & Construction Co., Ltd. (a) |
| 26,056,943 |
|
|
|
| 71,863,711 |
|
|
|
|
|
Consumer Finance—2.3% |
|
| ||
342,426 |
| Samsung Card Co., Ltd. |
| 16,229,361 |
|
|
|
|
|
Diversified Consumer Services—1.1% |
|
| ||
22,292 |
| MegaStudy Co., Ltd. |
| 7,435,067 |
|
|
|
|
|
Diversified Industrials—2.0% |
|
| ||
191,635 |
| LG Corp. |
| 14,476,882 |
|
|
|
|
|
Electrical Equipment—1.8% |
|
| ||
284,371 |
| LG.Philips LCD Co., Ltd. (a) |
| 12,697,905 |
|
|
|
|
|
Electronic Equipment & Instruments—1.9% |
|
| ||
202,404 |
| SFA Engineering Corp. |
| 13,408,637 |
|
|
|
|
|
Food & Staples Retailing—3.1% |
|
| ||
34,680 |
| Shinsegae Co., Ltd. |
| 21,902,578 |
|
|
|
|
|
Hotels, Restaurants & Leisure—1.1% |
|
| ||
157,313 |
| Hana Tour Service, Inc. (a) |
| 7,990,880 |
|
|
|
|
|
Insurance—2.0% |
|
| ||
69,805 |
| Samsung Fire & Marine Insurance Co., Ltd. |
| 14,471,761 |
|
|
|
|
|
Internet Software & Services—4.2% |
|
| ||
523,783 |
| LG Dacom Corp. |
| 9,923,789 |
85,496 |
| NHN Corp. (b) |
| 20,076,738 |
|
|
|
| 30,000,527 |
The Korea Fund, Inc. Schedule of Investments
March 31, 2008 (unaudited)
Shares |
|
|
| Value* |
Machinery—1.7% |
|
| ||
87,704 |
| Doosan Heavy Industries and Construction Co., Ltd. (a) |
| $11,832,966 |
|
|
|
|
|
Media—2.2% |
|
| ||
50,172 |
| Cheil Communications, Inc. |
| 12,103,027 |
1,024,140 |
| ON*Media Corp. (a)(b) |
| 3,837,810 |
|
|
|
| 15,940,837 |
|
|
|
|
|
Metals & Mining—7.7% |
|
| ||
263,105 |
| Dongkuk Steel Mill Co., Ltd. |
| 10,329,530 |
93,282 |
| POSCO |
| 44,653,890 |
|
|
|
| 54,983,420 |
|
|
|
|
|
Oil & Gas—1.6% |
|
| ||
110,190 |
| SK Energy Co., Ltd. |
| 11,407,310 |
|
|
|
|
|
Pharmaceuticals—2.2% |
|
| ||
84,414 |
| Yuhan Corp. (a) |
| 15,877,126 |
|
|
|
|
|
Road & Rail—2.0% |
|
| ||
127,604 |
| Korea Express Co., Ltd. (b) |
| 14,322,805 |
|
|
|
|
|
Semi-conductors—12.5% |
|
| ||
513,930 |
| Hynix Semiconductor, Inc. (a)(b) |
| 14,491,900 |
104,700 |
| Samsung Electronics Co., Ltd. |
| 66,207,295 |
150,240 |
| Samsung Techwin Co., Ltd. (a) |
| 8,215,590 |
|
|
|
| 88,914,785 |
|
|
|
|
|
Shipbuilding—7.8% |
|
| ||
438,453 |
| Daewoo Shipbuilding & Marine Engineering Co., Ltd. |
| 16,838,945 |
102,531 |
| Hyundai Heavy Industries Co., Ltd. (a) |
| 38,579,291 |
|
|
|
| 55,418,236 |
|
|
|
|
|
Tobacco—3.8% |
|
| ||
343,794 |
| KT&G Corp. |
| 27,002,160 |
|
|
|
|
|
Wholesale—6.0% |
|
| ||
525,230 |
| Daewoo International Corp. |
| 19,027,293 |
338,869 |
| Samsung Corp. |
| 23,830,134 |
|
|
|
| 42,857,427 |
|
|
|
|
|
Wireless Telecommunications Services—1.9% |
|
| ||
70,612 |
| SK Telecom Co., Ltd. |
| 13,366,499 |
|
|
|
|
|
|
| Total Common Stock (cost—$424,137,832) |
| 678,991,899 |
|
|
|
|
|
SHORT-TERM INVESTMENT—11.5% |
|
| ||
Collateral Invested for Securities on Loan (c)—11.5% |
|
| ||
82,160,747 |
| BNY Institutional Cash Reserves Fund, 2.90% (cost—$82,160,747) |
| 82,160,747 |
|
|
|
|
|
|
| Total Investments (cost—$506,298,579) (d)—107.0% |
| 761,152,646 |
|
| Liabilities in excess of other assets—(7.0)% |
| (49,974,351) |
|
| Net Assets—100.0% |
| $711,178,295 |
Notes to Schedule of Investments:
*Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Portfolio securities and other financial instruments, for which market quotations are not readily available or if a development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to guidelines established by the Board of Directors or persons acting at their discretion pursuant to guidelines established by the Board of Directors. The Fund’s investments are valued daily and the net asset value (‘‘NAV’’) is calculated as of the close of regular trading (normally 4:00 p.m. Eastern time) on the New York Stock Exchange (‘‘NYSE’’) on each day the NYSE is open for business using prices supplied by dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the last quoted mean price for those securities for which the over-the-counter market is the primary market or for listed securities in which there were no sales. With respect to Korean equity securities, the Fund fair values its securities daily using modeling tools provided by a statistical research service. This service utilizes statistics and programs based on historical performance of markets and other economic data (which may include changes in the value of U.S. securities or security indices). Fair value estimates used by the Fund for Korean equity securities may differ from the value realized from the sale of those securities. Short-term securities maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days. The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold.
(a) All or portion of security on loan with an aggregate market value of $77,789,153; cash collateral of $82,160,747 was received with which the Fund purchased short-term investments.
(b) Non-income producing.
(c) Security purchased with the cash proceeds from securities on loan.
(d) Securities with an aggregate value of $678,991,899, representing 95.5% of net assets, were valued utilizing modeling tools provided by a third-party vendor.
Item 2. Controls and Procedures
(a) The registrant's President and Chief Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act (17CFR270.30a-3(c)), as amended are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b) There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3 (d)) under the Act (17 CFR270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits
(a) Exhibit 99.302 Cert. – Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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/ Robert Goldstein | |
Robert Goldstein President and Chief Executive Officer |
Date: May 27, 2008
By: | /s/ Brian S. Shlissel | |
Brian S. Shlissel Treasurer, Principal Financial & Accounting Officer |
Date: May 27, 2008
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 dated indicated.
By: | /s/ Robert Goldstein | |
Robert Goldstein President and Chief Executive Officer |
Date: May 27, 2008
By: | /s/ Brian S. Shlissel | |
Brian S. Shlissel Treasurer, Principal Financial & Accounting Officer |
Date: May 27, 2008