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<SEC-DOCUMENT>0000088053-05-000311.txt : 20050308
<SEC-HEADER>0000088053-05-000311.hdr.sgml : 20050308
<ACCEPTANCE-DATETIME>20050308103109
ACCESSION NUMBER:		0000088053-05-000311
CONFORMED SUBMISSION TYPE:	N-CSRS
PUBLIC DOCUMENT COUNT:		26
CONFORMED PERIOD OF REPORT:	20041231
FILED AS OF DATE:		20050308
DATE AS OF CHANGE:		20050308
EFFECTIVENESS DATE:		20050308

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-CSRS
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-04058
		FILM NUMBER:		05665652

	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
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSRS
<SEQUENCE>1
<FILENAME>kor.htm
<DESCRIPTION>SEMIANNUAL REPORT
<TEXT>
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<PRE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                   FORM N-CSRS

Investment Company Act file number 811-4058

                              THE KOREA FUND, INC.
                             ----------------------
               (Exact Name of Registrant as Specified in Charter)

                                 345 Park Avenue
                            New York, New York 10154
                  --------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)

        Registrant's Telephone Number, including Area Code: (617) 295-2663
                                                            --------------

                               Salvatore Schiavone
                             Two International Place
                           Boston, Massachusetts 02110
                     ---------------------------------------
                     (Name and Address of Agent for Service)

Date of fiscal year end:        6/30

Date of reporting period:       12/31/2004

<PAGE>

ITEM 1.  REPORT TO STOCKHOLDERS

</PRE>
<P ALIGN="JUSTIFY">
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_1">
<TR>
<TD ID="ID_75" ALIGN="LEFT" VALIGN="TOP" COLSPAN="3">
<P ALIGN="LEFT"><FONT SIZE="+3">The Korea Fund, Inc.</FONT>
</P>
<H1 ALIGN="LEFT">Semiannual Report to Stockholders</H1>
<H1 ALIGN="LEFT">December 31, 2004</H1>
<P ALIGN="LEFT">A closed-end investment company seeking long-term&nbsp;capital appreciation
through investment in&nbsp;Korean securities.
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_21">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="korne150.gif" ALT="kor_NEW_SECTION150"></TD>
<TD ID="ID_59" ALIGN="JUSTIFY" VALIGN="BOTTOM">
<H1 ALIGN="JUSTIFY"><FONT COLOR="#000000">The Korea Fund, Inc.</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_168" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_167" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Investment Objective and Policies</FONT></H2>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT>        long-term capital appreciation through investment in Korean securities
</P>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Investment Characteristics</FONT></H2>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT>        investments in a broad spectrum of Korean industries
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT>        closed-end investment company
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT>        first United States investment company authorized to invest in Korean securities
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT>        a vehicle for international diversification through participation in the Korean
economy
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT>        a vehicle providing investments in some less liquid Korean opportunities
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_20">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="korne140.gif" ALT="kor_NEW_SECTION140"></TD>
<TD ID="ID_58" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000">General Information</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_166" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_165" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_2">
<TR>
<TD ID="ID_133" ALIGN="LEFT" VALIGN="TOP">
<H3 ALIGN="LEFT">Executive Offices</H3>
</TD>
<TD ID="ID_74" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">The Korea Fund, Inc.<BR>
345 Park Avenue<BR>
New York, NY 10154</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_132" ALIGN="LEFT" VALIGN="TOP">
<H3 ALIGN="LEFT">Automated <BR>
Information Line</H3>
</TD>
<TD ID="ID_73" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">Scudder Closed-End Fund Info Line<BR>
1-800-349-4281</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_131" ALIGN="LEFT" VALIGN="TOP">
<H3 ALIGN="LEFT">Web Site</H3>
</TD>
<TD ID="ID_130" ALIGN="LEFT" VALIGN="TOP">
<H3 ALIGN="LEFT">www.TheKoreaFund.com</H3>
<P ALIGN="LEFT"><FONT COLOR="#000000">or visit our Direct Link:</FONT>
</P>
<H3 ALIGN="LEFT">www.CEF.Scudder.com</H3>
<P ALIGN="LEFT"><FONT COLOR="#000000">Obtain monthly fact sheets, financial reports,
press releases and webcasts when available.</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_128" ALIGN="LEFT" VALIGN="TOP">
<H3 ALIGN="LEFT">Transfer Agent and Registrar</H3>
</TD>
<TD ID="ID_70" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">Scudder Investments Service Company<BR>
P.O. Box 219066<BR>
Kansas City, MO 64121-9066</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">For account information: 1-800-294-4366</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_127" ALIGN="LEFT" VALIGN="TOP">
<H3 ALIGN="LEFT">Dividend Reinvestment <BR>
Plan Agent</H3>
</TD>
<TD ID="ID_68" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">UMB Bank, N.A.</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_126" ALIGN="LEFT" VALIGN="TOP">
<H3 ALIGN="LEFT">Legal Counsel</H3>
</TD>
<TD ID="ID_67" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">Debevoise &amp; Plimpton LLP</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_125" ALIGN="LEFT" VALIGN="TOP">
<H3 ALIGN="LEFT">Custodian</H3>
</TD>
<TD ID="ID_66" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">Brown Brothers Harriman &amp; Co.</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_124" ALIGN="LEFT" VALIGN="TOP">
<H3 ALIGN="LEFT">Subcustodian </H3>
</TD>
<TD ID="ID_65" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">Citibank Korea Inc.</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_123" ALIGN="LEFT" VALIGN="TOP">
<H3 ALIGN="LEFT">Independent Registered
Public&nbsp;Accounting Firm</H3>
</TD>
<TD ID="ID_64" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">PricewaterhouseCoopers LLP</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_122" ALIGN="LEFT" VALIGN="TOP" COLSPAN="2">
<H3 ALIGN="LEFT">New York Stock Exchange Symbol &#151; KF</H3>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_19">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="korne130.gif" ALT="kor_NEW_SECTION130"></TD>
<TD ID="ID_57" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000">Contents</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_164" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_163" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_22">
<TR>
<TD ID="ID_194" ALIGN="LEFT" VALIGN="TOP" COLSPAN="3">
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#letter">Click Here</A></FONT><FONT COLOR="#000000">    Portfolio Management Review</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#other">Click Here</A></FONT><FONT COLOR="#000000">    Other Information</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#invsum">Click Here</A></FONT><FONT COLOR="#000000">   Investment Summary</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#portsum">Click Here</A></FONT><FONT COLOR="#000000">  Portfolio Summary</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#portfolio">Click Here</A></FONT><FONT COLOR="#000000">        Investment Portfolio</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#fins">Click Here</A></FONT><FONT COLOR="#000000">     Financial Statements</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#high">Click Here</A></FONT><FONT COLOR="#000000">     Financial Highlights</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#notes">Click Here</A></FONT><FONT COLOR="#000000">    Notes to Financial Statements</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#ria">Click Here</A></FONT><FONT COLOR="#000000">      Report of Independent Registered Public Accounting Firm</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#drip">Click Here</A></FONT><FONT COLOR="#000000">     Dividend Reinvestment and Cash Purchase Plan</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#smr">Click Here</A></FONT><FONT COLOR="#000000">      Stockholder Meeting Results</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#3300d9">  <A HREF="#ps">Click Here</A></FONT><FONT COLOR="#000000">       Privacy Statement</FONT>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_3">
<TR>
<TD ID="ID_118" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Investments in funds involve risks. The fund focuses its investments in certain
geographical regions, thereby increasing its vulnerability to developments in that region.
Investing in foreign securities presents certain unique risks not associated with domestic
investments, such as currency fluctuation and political and economic changes and
market risks. This may result in greater share price volatility. Shares of closed-end funds
frequently trade at a discount to net asset value. The price of the fund's shares is
determined by a number of factors, several of which are beyond the control of the fund.
Therefore, the fund cannot predict whether its shares will trade at, below or above net
asset value.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">This report is sent to the stockholders of The Korea Fund, Inc. for their information. It is not a
prospectus, circular, or representation intended for use in the purchase or sale of shares of the fund
or of any securities mentioned in the report.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">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.</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_18">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="korne120.gif" ALT="kor_NEW_SECTION120"></TD>
<TD ID="ID_56" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="letter" ID="letter"></A>Portfolio Management Review</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_162" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_161" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><FONT SIZE="-1" COLOR="#000000">In the following interview, Lead Portfolio Manager John J. Lee discusses the market
environment, fund performance and his strategy in managing The Korea Fund, Inc.
during the six-month period ended December 31, 2004. </FONT>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">Q:&nbsp;&nbsp;How did South Korea's stock market perform during
the past six months?</FONT></B>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">A:</FONT></B><FONT COLOR="#000000">&nbsp;&nbsp;</FONT><FONT COLOR="#000000">Korea* provided robust performance during the second
half of 2004, returning 26.50% as measured by the
KOSPI.<FONT SIZE="-1"><SUP>1</SUP></FONT> The reporting period began on a down note, as
the&nbsp;index initially fell from 786 on June 30 to 720&nbsp;by
August&nbsp;2. From this low, the market staged a two-month
rally, bringing the index to 887 by October 6. Stocks
subsequently moved into a tight trading range that lasted
for almost the entire fourth quarter. Only on the final
trading day of the year did the KOSPI surpass its October
high, closing at 896.</FONT>
</P>
<P ALIGN="LEFT">
</P>
<P ALIGN="LEFT"><FONT SIZE="-1" COLOR="#000000">*<I><SUP>       </SUP></I></FONT><I><FONT SIZE="-2" COLOR="#000000">Please note that for the purposes of this report, the term &quot;Korea&quot; refers to South Korea. North
Korea is identified as&nbsp;such.</FONT></I>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"><SUP>1  </SUP><I>KOSPI is a capitalization-weighted index of all common shares on the Korea Stock Exchange.
The&nbsp;index is calculated using closing locqal market prices and converts to US dollars using the
London close foreign exchange rates. </I></FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">For the six-month period, the Korean market
outperformed the broader world markets as measured by
the 10.82% return of the MSCI World Index.<FONT SIZE="-1"><SUP>2</SUP></FONT> Relative to
its larger Asian peers, Korea outpaced Japan, Taiwan and
Singapore, but trailed Hong Kong and India. </FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"><SUP>2  </SUP><I>The MSCI World Index is an unmanaged, capitalization-weighted measure of global stock markets,
including the US, Canada, Europe, Australia and the Far East. The index is calculated using closing
local market prices and converts to US dollars using the London close foreign exchange rates. </I></FONT>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">     Index returns assume reinvestment of all dividends, and unlike fund returns, do not reflect fees or
expenses. It is not possible to invest directly into an index.</FONT></I>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Returns for dollar-based investors were boosted by the
rising value of the Korean won in relation to the
US&nbsp;dollar: On December 31, 2004, 1048 won were
required to purchase one US dollar, an improvement from
the 1153 level of June 30 and 1195 of one year ago. </FONT>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">Q:&nbsp;&nbsp;How did the fund perform during the semiannual
period?</FONT></B>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">A:</FONT></B><FONT COLOR="#000000">&nbsp;&nbsp;</FONT><FONT COLOR="#000000">For the six months ended December 31, 2004, the
net&nbsp;asset value (NAV) total return of the The Korea
Fund&nbsp;was&nbsp;22.93%. Its share price &#151; quoted on the
NYSE&nbsp;&#151; returned 31.13% to close at $24.06 per
share,&nbsp;representing a discount of 6.74% to NAV.
Past&nbsp;performance is no guarantee of future results.
Performance&nbsp;of&nbsp;the exchange-traded shares was helped by
the announcement on December 15, 2004 that the fund's
Board of Directors had&nbsp;approved a series of measures
designed to enhance shareholder value. Please see page <A HREF="#subevent">13</A>
for information associated with this announcement.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">Q:&nbsp;&nbsp;What factors helped and hurt performance?</FONT></B>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">A:</FONT></B><FONT COLOR="#000000">&nbsp;&nbsp;</FONT><FONT COLOR="#000000"> The fund continues to benefit from its positions in
small- and mid-cap stocks. As we have stated in recent
shareholder reports, we believe this is the best area of the
market in which to find fast-growing, undervalued and
underfollowed companies. About 30% of the fund is
now&nbsp;invested in this area, compared with approximately
19% within the benchmark index. Due to the nature of
the fund's tender offer, our ability to own and continue
to&nbsp;purchase such companies will not be affected by the
transaction. A notable detractor from performance was a
position in DAUM, a Korean internet stock that declined
sharply during the reporting period. The stock is no
longer held in the portfolio.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Smaller companies that have performed well for the fund
include:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT><FONT COLOR="#000000">  </FONT><I><FONT COLOR="#000000">Insun ENT Co., Ltd.:</FONT></I><FONT COLOR="#000000"> A company that specializes in
recycling cement and reengineering used building
materials, Insun ENT has experienced average annual
sales and earnings growth in excess of 50% over the past
five years&nbsp;and trades at just seven times earnings.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT><FONT COLOR="#000000">  </FONT><I><FONT COLOR="#000000">Korea Express Co., Ltd.:</FONT></I><FONT COLOR="#000000"> This parcel delivery company,
which is similar to United Parcel Service in the US,
holds a 40% market share and has been experiencing
average annual earnings growth in excess of 20%, yet
continues to trade at just three times earnings.</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT><FONT COLOR="#000000">  </FONT><I><FONT COLOR="#000000">SFA Engineering Corp.:</FONT></I><FONT COLOR="#000000"> A leading maker of components
for&nbsp;flat panel displays and a supplier to Samsung
Electronics Co., Ltd., SFA has generated average
earnings growth of 50% per year for the past three years
and boasts a return on equity of over 40%. Still, it
trades at just one&nbsp;time EBITDA (earnings before
interest, taxes, depreciation and amortization) and one
time cash flow. </FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT><FONT COLOR="#000000">  </FONT><I><FONT COLOR="#000000">Seoul Semiconductor Co., Ltd.:</FONT></I><FONT COLOR="#000000"> This company is one of
a&nbsp;few that can manufacture high-end LEDs (light
emitting diodes), which are used as backlights for
displays in handsets, autos and other lighting devices.
The company continues to win business away from its
Japanese rivals, and its earnings are expected to grow
rapidly  in 2005. The potential applications for Seoul
Semiconductor's cutting-edge technology are enormous,
so we view the company as a significant long-term
investment opportunity.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Turning to the larger companies in the fund, our position
in SK Corp. generated strong returns. The stock declined
sharply in 2003 after its illegal accounting practices were
revealed, bringing its price to what we believed to be an
attractive level. We began purchasing the stock when it
was trading below 10,000 won, and it has since risen to
approximately 55,000 won. On the negative side, the
fund's position in Samsung Electro-Mechanics Co., Ltd.
provided disappointing returns when its restructuring
initiatives took longer to unfold than we expected. We
have since eliminated the stock from the portfolio.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Samsung Electronics Co, Ltd. and SK Telecom Co., Ltd.
both produced sub-par returns. Samsung Electronics
performed very&nbsp;well in the first half of the year, but the
stock deteriorated in the second half as investors became
concerned about slowing computer chip sales and a
poor&nbsp;pricing environment in the flat screen television
industry. Fortunately, our underweight position (relative
to the benchmark) in the stock helped mute the impact of
its weak return. In our view, SK&nbsp;Telecom remains a
compelling long-term opportunity despite its recent
underperformance due to its&nbsp;strong market position,
attractive valuation and high dividend yield. </FONT>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">Q:&nbsp;&nbsp;What is your broad view on the Korean stock market?</FONT></B>
</P>
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">A:</FONT></B><FONT COLOR="#000000">&nbsp;&nbsp;</FONT><FONT COLOR="#000000">Korean stocks have provided competitive returns amid
the rally in global equity markets during the past two-plus
years. We believe, however, that the foundation is in place
for Korea to begin consistently outperforming in the years
ahead. In the short term, its performance has been
hindered by the comparative weakness in the country's
economy. Gross domestic product (GDP) growth is
expected to come in lower in 2005 than in 2004,
employment growth is sluggish and consumer debt levels
&#151; while improving &#151; are still high. Confidence is
relatively low as a result, and this has limited stock market
participation by both Korean individuals and institutions.
Consider, for example, the fact that the percentage of
household assets invested in the stock market is only 6%,
compared with 26% for other Asian nations. The national
pension plan is underinvested as well, with only about 8%
of assets invested in the local market. The result is that
Korea, at six times 2004 earnings and two times cash flow,
trades at a significant valuation discount to its Asian peers. </FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">We believe the potential exists for this discount to narrow
in the years ahead. First, and perhaps most notably, Korea's
government is actively encouraging pension plans to make
investments in the stock market. This initiative is not
intended as a short-term boost to market performance,
but rather as a means to help ensure that pension assets
will be able to grow fast enough to meet future liabilities.
Investment in pension plans is increasing at approximately
20% per year, so even a small rise in the percentage of
funds invested in equities will lead to significant cash flows
into the market. And stocks, despite their strong showing
this year, remain attractive from a fundamental standpoint
in our view. For instance, the return on equity for stocks
in the KOSPI is now approximately 20%. In comparison,
this number stood at -3% during the economic crisis of
the late 1990s. Dividends are becoming an increasingly
important factor as well. And the small-cap area, as we
mentioned, is home to a large number of companies
experiencing exceptionally rapid earnings growth.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">We also remain encouraged by the direction of
longer-term trends in Korea. The country's political
leadership remains steadfast in its determination to
improve corporate governance despite resistance from the
old-line industrial conglomerates (the <I>chaebol</I>). An
example of a recent reform is a law that allows class action
suits in Korea for the first time. In addition, the country
remains positioned to benefit from the rapid economic
expansion in China. While the markets have been
weighing in the possibility of a &quot;hard landing&quot; in China
following the government's steps to cool its economy, we
believe a recession scenario is unlikely, and that Korea will
continue to benefit from the Chinese growth engine for
years. Finally, the movement of the economy from more
cyclical manufacturing industries and towards a more
modern, technology-oriented economy continues to
represent an important long-term positive. </FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Even with these factors in place, the process of the Korean
market moving to a valuation level closer to that of its
global peers could take many years. In addition, absolute
performance could be hurt by any one of several potential
risk factors, such as slower global growth, an unexpected
jump in US interest rates, or political tension related to
North Korea. Nonetheless, we believe the foundation
is&nbsp;in&nbsp;place for Korea to deliver attractive long-term
performance relative to both the broader world markets
and its Asian peers. </FONT>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The views expressed in this report reflect those of the portfolio managers only through the
end of the period of the report as stated on the cover. The managers' views are subject to
change at any time based on market and other conditions and should not be construed as
a recommendation.</FONT></I>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_17">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="korne110.gif" ALT="kor_NEW_SECTION110"></TD>
<TD ID="ID_55" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="other" ID="other"></A>Other Information</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_160" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_159" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Investment Manager</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">Deutsche Investment Management Americas Inc. (&quot;DeIM&quot;), with
headquarters at 345 Park Avenue, New York, NY, is the investment manager
for the fund. DeIM and its predecessors have more than 80 years of experience
managing mutual funds. DeIM provides a full range of investment advisory
services to institutional and retail clients. DeIM is also responsible for selecting
brokers and dealers and for negotiating brokerage commissions and dealer
charges.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Deutsche Asset Management is the marketing name in the US for the asset
management activities of Deutsche Bank AG, Deutsche Bank Trust Company
Americas, Deutsche Asset Management, Inc., Deutsche Asset Management
Investment Services Ltd., Deutsche Investment Management Americas Inc.
and Scudder Trust Company.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Deutsche Asset Management is a global asset management organization that
offers a wide range of investing expertise and resources, including hundreds of
portfolio managers and analysts and an office network that reaches the world's
major investment centers. This well-resourced global investment platform
brings together a wide variety of experience and investment insight across
industries, regions, asset classes and investing styles.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">DeIM is an indirect, wholly owned subsidiary of Deutsche Bank AG.
Deutsche Bank AG is a major global banking institution that is engaged in a
wide range of financial services, including investment management, mutual
fund, retail, private and commercial banking, investment banking and
insurance.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Deutsche Asset Management also manages the assets of other closed-end
investment companies which invest primarily in foreign securities: Scudder
New Asia Fund, Inc., The Brazil Fund, Inc., Scudder Global High Income
Fund, Inc., Scudder Global Commodities Stock Fund, Inc., The Germany
Fund, Inc., The New Germany Fund, Inc. and The&nbsp;Central Europe and
Russia Fund, Inc. In addition, Deutsche Asset Management manages
open-end mutual funds which invest in domestic and international markets.</FONT>
</P>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Korean Advisor</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">Deutsche Investment Trust Management Company Limited (&quot;DeITMC&quot;),
located at 19F, Youngpoong Building, 33, Seorin-Dong, Chongro-ku, Seoul,
Korea, serves as subadvisor to the fund. DeITMC renders investment advisory
and management services with regard to the fund's portfolio. From time to
time, DeITMC makes specific investment recommendations, which then are
evaluated by DeIM's portfolio managers in light of their own expertise and
information from other sources in making investment decisions for the fund.</FONT>
</P>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Dividend Reinvestment and Cash Purchase Plan</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">The fund's Dividend Reinvestment and Cash Purchase Plan offers you a
convenient way to have your dividends and capital gain distributions
reinvested in shares of the fund. We believe this Plan is attractive for
stockholders. Its features are more fully described on page <A HREF="#drip">40</A>. You may obtain
more detailed information by requesting a copy of the Plan from the Transfer
Agent. All correspondence (including notifications) should be directed to:
The&nbsp;Korea Fund Dividend Reinvestment and Cash Purchase Plan,
c/o&nbsp;Scudder Investments Service Company, P.O. Box 219066, Kansas City,
MO 4121-9066, 1-800-294-4366.</FONT>
</P>
<H2 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="subevent" ID="subevent"></A>Recent Events</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">On December 15, 2004, the fund's Board of Directors approved a series of
measures designed to enhance shareholder value and to maintain the fund's
viability: </FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT><FONT COLOR="#000000">  </FONT><FONT COLOR="#000000">an offer to repurchase 50% of the fund's outstanding shares in exchange for
portfolio securities of the fund;</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT><FONT COLOR="#000000">  </FONT><FONT COLOR="#000000">a program for future repurchase offers; and </FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2"></FONT><FONT COLOR="#000000">  </FONT><FONT COLOR="#000000">a reduction in the fee paid to the fund's manager, Deutsche Investment
Management Americas Inc.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The initial offer would be to repurchase 50% of the fund's outstanding shares
at a price of 98% of net asset value on the day after the expiration of the offer.
Shareholders exchanging their shares in the offer would receive a pro rata share
of the fund's portfolio. Shareholders may sell their share of portfolio securities
and receive the cash proceeds.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Launching of the offer would be conditioned on receipt of a ruling from the
Internal Revenue Service that the fund would not recognize capital gain as a
result of distributing appreciated property to participating shareholders. The
offer would also conditioned on approvals by the SEC and by regulators in
Korea. The fund currently anticipates receipt of approvals in the first half of
2005.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The board also approved making semi-annual offers, each to repurchase 10%
of the fund's shares then outstanding, at a price of 98% of net asset value on
the day after expiration of the offer, in the three calendar years following
completion of the initial offer. As with the initial offer, participating holders
would be paid in kind, by receiving a pro rata share of the fund's portfolio.
Each of these subsequent offers would be made, subject to regulatory
approvals, fiduciary and other applicable requirements, if the fund's shares
traded on the New York Stock Exchange at an average weekly discount from
net asset value greater than 5% during a 13-week measuring period ending the
last day of the preceding half-year.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">In light of the size of the initial offer and the program for subsequent offers,
the board announced that the fund would not proceed with its previously
announced program of a contingent 10% repurchase offer in the first quarter
of 2005 and in the first quarter of 2006.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The board also announced a reduction, effective December 1, 2004, in the
fees payable to the fund's manager. Previously, the annual management fee had
ranged from 1.15% on the first $50 million of net assets to 0.85% of net
assets over $1.050 billion. Under the amended advisory agreement, the
management fee ranges from 0.60% on the first $250 million of net assets to
0.50% of net assets in excess of $1 billion. On the fund's current assets, this
represents an overall reduction of approximately 45% in the management fee.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">As part of the Board's previously announced review of key aspects of the fund's
structure and operations, the board announced that it will be sending out
requests for proposals for management of the fund. In the fund's
announcement, Robert J. Callander, Chairman of the fund's Board of
Directors, said: &quot;The fund's manager DeIM has done well for shareholders in
managing the fund, and its capabilities in researching and selecting Korean
securities have produced strong investment performance, and has agreed to a
substantial reduction in the management fee. However, we will review
proposals from other managers with the requisite capabilities and record of
performance, so we can compare their proposals with having DeIM continue
as the manager.&quot;</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Mr. Callander stated: &quot;The board of directors of The Korea Fund, which
consists entirely of independent directors who have no affiliation with the
manager, has taken full account of the results of the annual meeting on
October 6 and has considered the views expressed by stockholders. Our
objective is to do what is best for the fund and its stockholders &#151; bearing in
mind both the desires of some stockholders for liquidity and the fund's record
of success in achieving its objective of long-term capital appreciation through
investing in Korean securities.&quot;</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">&quot;The board continues to believe that the fund's closed-end structure is in the
best interests of stockholders because, under current market conditions,
including the emerging nature of the Korean capital markets and the volatility
and limited liquidity of many of the fund's holdings, the board believes that
the fund is best able to achieve its investment objective as a closed-end fund.&quot;</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The fund also announced that it expected that William H. Luers would
continue as a director until his term expired at the fund's 2005 annual
meeting, and that Mr. Callander, because of his responsibilities as Chairman of
the Board, had agreed to stand for re-election at the 2005 annual meeting.
The fund had previously indicated that both directors were expected to retire
in April 2005.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">There can be no assurance that the approvals needed for the repurchase offers
will be obtained, or that any action proposed or adopted by the board will
reduce or eliminate the discount from net asset value at which the fund's
shares trade. The fund's announcement is not an offer to purchase or the
solicitation of an offer to sell shares of the fund. The repurchase offers referred
to in the fund's announcement will be made only by the offer to purchase and
related letter of transmittal. Stockholders should review these documents
carefully when they are available, because they will contain important
information. These documents will be available to investors for free at the
Web site of the Securities and Exchange Commission (www.sec.gov), as well as
on the fund's Web site at www.CEF.scudder.com. An offer to purchase will not
be made to, nor will tenders pursuant to the offer to purchase be accepted
from or on behalf of, holders of shares in any jurisdiction in which making or
accepting the offer to purchase would violate the jurisdiction's laws.</FONT>
</P>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Changes in Officers</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">On October 6, 2004, the Board of Directors elected Paul H. Schubert as
Chief Financial Officer of the fund, replacing Charles A. Rizzo who remains as
Treasurer of the fund. The Board of Directors also changed the titles of Bruce
A. Rosenblum and John Millette, electing Bruce A. Rosenblum as Vice
President and Secretary of the fund and John Millette as Assistant Secretary of
the fund.</FONT>
</P>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Proxy Voting </FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">A description of the fund's policies and procedures for voting proxies for
portfolio securities and information about how the fund voted proxies related
to its portfolio securities during the 12-month period ended June 30 is
available on our Web site &#151; scudder.com (type &quot;proxy voting&quot; in the search
field)&nbsp;&#151;&nbsp;or on the SEC's Web site &#151; www.sec.gov. To obtain a written&nbsp;copy
of the fund's policies and procedures without charge, upon request, call us toll
free at (800) 621-1048.</FONT>
</P>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Share Repurchases</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Board of Directors of The Korea Fund, Inc. has also authorized the fund
to effect periodic repurchases of its shares in the open market from time to
time when the fund's shares trade at a discount to their NAV. Subject to
periodic review by the Board, repurchases may be made at such time and in
such amounts as the fund's Manager believes will further the achievement of
the fund's objectives. Depending on market conditions, available funds,
regulatory requirements and alternative investment opportunities, such
repurchases are limited to (1) 5% of the shares outstanding at the beginning of
the calendar year, plus (2) an estimate of shares to be issued in connection
with the current calendar year's dividends, plus (3) the number of shares
authorized for purchase in the previous calendar year that have not been
purchased. In measuring the number of shares authorized for repurchase, the
shares relating to the current calendar year's dividends are estimated at 50% of
the number of shares issued in connection with the prior calendar year's
dividends or until such time during the calendar year that the fund's Manager
has a more accurate projection of the calendar year's dividends. Repurchases
made based on this estimate shall continue to have been authorized, even if
the actual dividend or related share issuance is lower. During the six months
ended December 31, 2004, the fund repurchased no shares pursuant to this
share repurchase plan as described above.</FONT>
</P>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">Net Asset Value</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">The fund's NAV is available daily on our Web site at
<B><FONT SIZE="-1">www.TheKoreaFund.com</FONT></B> or visit our Direct Link <B><FONT SIZE="-1">www.CEF.Scudder.com</FONT></B>.
The fund's NAV is published weekly on Monday and the fund's Market Value
is published every weekday in <I>The Wall Street Journal</I> under the heading
&quot;Closed End Funds.&quot; The fund's market value is also published daily in <I>The
New York Times</I> and weekly in <I>Barron's.</I>The fund's NAV is also published
weekly in <I>Barron's.</I> </FONT>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_16">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="korne100.gif" ALT="kor_NEW_SECTION100"></TD>
<TD ID="ID_121" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="invsum" ID="invsum"></A>Investment Summary      </FONT><FONT COLOR="#000000">as of December 31, 2004</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_158" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_157" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Performance is historical, assumes reinvestment of all dividends and capital gains,
and does not guarantee future results. Investment return and principal value
fluctuate with changing market conditions so that, when sold, shares may be
worth more or less than their original cost. Current performance may be lower
or&nbsp;higher than the performance data quoted. Please visit www.CEF.Scudder.com
for the Fund's most recent performance.</FONT></B>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_23">
<TR>
<TD ID="ID_354" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="12">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Historical Information </FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_476" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_260" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="11">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Total Return (%)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_475" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_259" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Market Value</FONT></B>
</P>
</TD>
<TD ID="ID_258" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_257" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Net Asset
Value&nbsp;(a)</FONT></B>
</P>
</TD>
<TD ID="ID_256" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_255" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Index (b)</FONT></B>
</P>
</TD>
<TD ID="ID_254" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_253" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Index (c)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_474" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_252" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Cumulative</FONT></B>
</P>
</TD>
<TD ID="ID_251" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Average
Annual</FONT></B>
</P>
</TD>
<TD ID="ID_250" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_249" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Cumulative</FONT></B>
</P>
</TD>
<TD ID="ID_248" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Average
Annual</FONT></B>
</P>
</TD>
<TD ID="ID_247" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_246" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Cumulative</FONT></B>
</P>
</TD>
<TD ID="ID_245" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Average
Annual</FONT></B>
</P>
</TD>
<TD ID="ID_244" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_243" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Cumulative</FONT></B>
</P>
</TD>
<TD ID="ID_242" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Average
Annual</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_473" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Current
Quarter</FONT>
</P>
</TD>
<TD ID="ID_758" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">19.75</FONT>
</P>
</TD>
<TD ID="ID_757" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_756" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_755" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">20.42</FONT>
</P>
</TD>
<TD ID="ID_754" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_753" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_752" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">18.62</FONT>
</P>
</TD>
<TD ID="ID_751" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_750" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_749" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7.28</FONT>
</P>
</TD>
<TD ID="ID_748" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_472" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">One Year</FONT>
</P>
</TD>
<TD ID="ID_747" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">34.70</FONT>
</P>
</TD>
<TD ID="ID_746" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">34.70</FONT>
</P>
</TD>
<TD ID="ID_745" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_744" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">26.03</FONT>
</P>
</TD>
<TD ID="ID_743" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">26.03</FONT>
</P>
</TD>
<TD ID="ID_742" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_741" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">27.04</FONT>
</P>
</TD>
<TD ID="ID_740" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">27.04</FONT>
</P>
</TD>
<TD ID="ID_739" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_738" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">10.51</FONT>
</P>
</TD>
<TD ID="ID_737" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">10.51</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_471" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Three Year</FONT>
</P>
</TD>
<TD ID="ID_736" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">102.60</FONT>
</P>
</TD>
<TD ID="ID_735" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">26.54</FONT>
</P>
</TD>
<TD ID="ID_734" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_733" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">77.63</FONT>
</P>
</TD>
<TD ID="ID_732" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">21.11</FONT>
</P>
</TD>
<TD ID="ID_731" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_730" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">64.06</FONT>
</P>
</TD>
<TD ID="ID_729" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">17.92</FONT>
</P>
</TD>
<TD ID="ID_728" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_727" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">29.15</FONT>
</P>
</TD>
<TD ID="ID_726" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">8.89</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_470" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Five Year</FONT>
</P>
</TD>
<TD ID="ID_725" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">80.35</FONT>
</P>
</TD>
<TD ID="ID_724" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">12.52</FONT>
</P>
</TD>
<TD ID="ID_723" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_722" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">41.34</FONT>
</P>
</TD>
<TD ID="ID_721" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7.17</FONT>
</P>
</TD>
<TD ID="ID_720" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_719" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-4.38</FONT>
</P>
</TD>
<TD ID="ID_718" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-.89</FONT>
</P>
</TD>
<TD ID="ID_717" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_716" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-12.85</FONT>
</P>
</TD>
<TD ID="ID_715" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-2.71</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_469" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Ten Year</FONT>
</P>
</TD>
<TD ID="ID_714" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">53.21</FONT>
</P>
</TD>
<TD ID="ID_713" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">4.36</FONT>
</P>
</TD>
<TD ID="ID_712" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_711" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">81.00</FONT>
</P>
</TD>
<TD ID="ID_710" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">6.11</FONT>
</P>
</TD>
<TD ID="ID_709" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_708" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-34.07</FONT>
</P>
</TD>
<TD ID="ID_707" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-4.08</FONT>
</P>
</TD>
<TD ID="ID_706" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_705" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-12.79</FONT>
</P>
</TD>
<TD ID="ID_704" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-1.36</FONT>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_24">
<TR>
<TD ID="ID_353" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="12">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Per Share Information and Returns (a)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_241" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_1054" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="10">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">Yearly periods ended December 31</FONT>
</P>
</TD>
<TD ID="ID_1053" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD COLSPAN="12" ALIGN="CENTER" VALIGN="BOTTOM"><IMG SRC="korps180.gif" ALT="kor_psi180"></TD>
</TR>

<TR>
<TD ID="ID_468" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_240" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">1995</FONT></B>
</P>
</TD>
<TD ID="ID_239" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">1996</FONT></B>
</P>
</TD>
<TD ID="ID_238" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">1997</FONT></B>
</P>
</TD>
<TD ID="ID_237" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">1998</FONT></B>
</P>
</TD>
<TD ID="ID_236" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">1999</FONT></B>
</P>
</TD>
<TD ID="ID_235" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2000</FONT></B>
</P>
</TD>
<TD ID="ID_234" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2001</FONT></B>
</P>
</TD>
<TD ID="ID_233" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2002</FONT></B>
</P>
</TD>
<TD ID="ID_232" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2003</FONT></B>
</P>
</TD>
<TD ID="ID_231" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2004</FONT></B>
</P>
</TD>
<TD ID="ID_230" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_467" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net Asset
Value&nbsp;($)</FONT>
</P>
</TD>
<TD ID="ID_703" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">20.04</FONT>
</P>
</TD>
<TD ID="ID_702" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">13.55</FONT>
</P>
</TD>
<TD ID="ID_701" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">4.44</FONT>
</P>
</TD>
<TD ID="ID_700" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">9.59</FONT>
</P>
</TD>
<TD ID="ID_699" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">23.13</FONT>
</P>
</TD>
<TD ID="ID_698" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">12.79</FONT>
</P>
</TD>
<TD ID="ID_697" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">15.89</FONT>
</P>
</TD>
<TD ID="ID_696" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">16.56</FONT>
</P>
</TD>
<TD ID="ID_695" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">20.97</FONT>
</P>
</TD>
<TD ID="ID_694" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">25.80</FONT>
</P>
</TD>
<TD ID="ID_693" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_466" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Income
Dividends ($)</FONT>
</P>
</TD>
<TD ID="ID_692" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">.06</FONT>
</P>
</TD>
<TD ID="ID_691" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_690" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_689" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_688" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_687" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">.17</FONT>
</P>
</TD>
<TD ID="ID_686" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">.01</FONT>
</P>
</TD>
<TD ID="ID_685" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">.18</FONT>
</P>
</TD>
<TD ID="ID_684" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">.30</FONT>
</P>
</TD>
<TD ID="ID_683" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">.45</FONT>
</P>
</TD>
<TD ID="ID_682" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_465" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Capital Gains
Distributions ($)</FONT>
</P>
</TD>
<TD ID="ID_681" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">.36</FONT>
</P>
</TD>
<TD ID="ID_680" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">.60</FONT>
</P>
</TD>
<TD ID="ID_679" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_678" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_677" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_676" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_675" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1.53</FONT>
</P>
</TD>
<TD ID="ID_674" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">.67</FONT>
</P>
</TD>
<TD ID="ID_673" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD ID="ID_672" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">.20</FONT>
</P>
</TD>
<TD ID="ID_671" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_464" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Total Return&nbsp;(%)</FONT>
</P>
</TD>
<TD ID="ID_670" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">4.26</FONT>
</P>
</TD>
<TD ID="ID_669" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-30.01</FONT>
</P>
</TD>
<TD ID="ID_668" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-66.50</FONT>
</P>
</TD>
<TD ID="ID_667" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">115.99</FONT>
</P>
</TD>
<TD ID="ID_666" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">141.19</FONT>
</P>
</TD>
<TD ID="ID_665" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">-44.24</FONT>
</P>
</TD>
<TD ID="ID_664" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">42.71</FONT>
</P>
</TD>
<TD ID="ID_663" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">9.39</FONT>
</P>
</TD>
<TD ID="ID_662" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">28.84</FONT>
</P>
</TD>
<TD ID="ID_661" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">26.03</FONT>
</P>
</TD>
<TD ID="ID_660" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(a)  Total investment returns reflect changes in net asset value per share during each period and
assume that dividends and capital gains distributions, if any, were reinvested. These percentages
are not an indication of the performance of a shareholder's investment in the Fund based on
market price.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(b)  Korea Stock Price Index (&quot;KOSPI&quot;) in US dollars.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(c)  KOSPI in local terms.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">KOSPI is a capitalization-weighted index of all common shares on the Korea Stock Exchange. The index
is calculated using closing local market prices and converts to US dollars using the London close foreign
exchange rates. Index returns, unlike Fund returns, do not reflect any fees or expenses. It is not possible
to invest directly into an index.</FONT></I>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_15">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kornenf0.gif" ALT="kor_NEW_SECTIONF0"></TD>
<TD ID="ID_120" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="portsum" ID="portsum"></A>Portfolio Summary     </FONT><FONT COLOR="#000000">as of December 31, 2004</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_156" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_155" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_26">
<TR>
<TD ID="ID_352" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Asset Allocation</FONT></B>
</P>
</TD>
<TD ID="ID_1051" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">12/31/04</FONT></B>
</P>
</TD>
<TD ID="ID_1050" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">6/30/04</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1232" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1231" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Common Stocks</FONT>
</P>
</TD>
<TD ID="ID_659" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">84%</FONT>
</P>
</TD>
<TD ID="ID_658" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">84%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1230" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Preferred Stocks</FONT>
</P>
</TD>
<TD ID="ID_657" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">15%</FONT>
</P>
</TD>
<TD ID="ID_656" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">16%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1229" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Corporate Bonds</FONT>
</P>
</TD>
<TD ID="ID_655" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1%</FONT>
</P>
</TD>
<TD ID="ID_654" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_653" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_652" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">100%</FONT>
</P>
</TD>
<TD ID="ID_651" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">100%</FONT>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_25">
<TR>
<TD ID="ID_351" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Sector Diversification<BR>
</FONT></B><FONT SIZE="-2" COLOR="#ffffff">(Sector breakdown of the Fund's equity securities)</FONT>
</P>
</TD>
<TD ID="ID_1049" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">12/31/04</FONT></B>
</P>
</TD>
<TD ID="ID_1048" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">6/30/04</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1228" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_463" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Information Technology</FONT>
</P>
</TD>
<TD ID="ID_650" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">25%</FONT>
</P>
</TD>
<TD ID="ID_649" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">30%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_462" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Consumer Discretionary</FONT>
</P>
</TD>
<TD ID="ID_648" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">18%</FONT>
</P>
</TD>
<TD ID="ID_647" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">18%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_461" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Financials</FONT>
</P>
</TD>
<TD ID="ID_646" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">16%</FONT>
</P>
</TD>
<TD ID="ID_645" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">15%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_460" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Materials</FONT>
</P>
</TD>
<TD ID="ID_644" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">12%</FONT>
</P>
</TD>
<TD ID="ID_643" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">10%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_459" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Energy</FONT>
</P>
</TD>
<TD ID="ID_642" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">9%</FONT>
</P>
</TD>
<TD ID="ID_641" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">8%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_458" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Industrials</FONT>
</P>
</TD>
<TD ID="ID_640" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7%</FONT>
</P>
</TD>
<TD ID="ID_639" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">6%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_457" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Consumer Staples</FONT>
</P>
</TD>
<TD ID="ID_638" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7%</FONT>
</P>
</TD>
<TD ID="ID_637" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_456" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Telecommunications Services</FONT>
</P>
</TD>
<TD ID="ID_636" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">5%</FONT>
</P>
</TD>
<TD ID="ID_635" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">6%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1227" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Health Care</FONT>
</P>
</TD>
<TD ID="ID_634" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1%</FONT>
</P>
</TD>
<TD ID="ID_633" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_632" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_631" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">100%</FONT>
</P>
</TD>
<TD ID="ID_630" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">100%</FONT>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Asset allocation and sector diversification are subject to change.</FONT></I>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_37">
<TR>
<TD ID="ID_350" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Ten Largest Equity Holdings at December 31, 2004 </FONT></B><FONT SIZE="-2" COLOR="#ffffff">(63.8% of Net Assets)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_294" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     1.      Samsung Electronics Co., Ltd.</FONT></B>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Manufacturer of major electronics</FONT>
</P>
</TD>
<TD ID="ID_86" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">17.8%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_293" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     2.      Samsung Fire &amp; Marine Insurance Co., Ltd.</FONT></B>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Provider of insurance products</FONT>
</P>
</TD>
<TD ID="ID_85" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">8.5%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_292" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     3.      POSCO</FONT></B>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Manufacturer of hot and cold rolled steel products</FONT>
</P>
</TD>
<TD ID="ID_84" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">7.0%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_291" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     4.      Hyundai Motor Co., Ltd.</FONT></B>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Manufacturer of motor vehicles</FONT>
</P>
</TD>
<TD ID="ID_83" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">5.6%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_290" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     5.      SK Telecom Co., Ltd.</FONT></B>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Provider of mobile telecommunication services</FONT>
</P>
</TD>
<TD ID="ID_82" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">5.5%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_289" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     6.      S-Oil Corp.</FONT></B>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Refines crude oil and sells petroleum and related products</FONT>
</P>
</TD>
<TD ID="ID_81" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">5.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_288" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     7.      SK Corp.</FONT></B>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Refiner of oil in Korea</FONT>
</P>
</TD>
<TD ID="ID_80" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">3.9%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_287" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     8.      Hankook Tire Co., Ltd.</FONT></B>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Manufacturer of tires, tire tubes and aluminum alloy wheels</FONT>
</P>
</TD>
<TD ID="ID_79" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">3.8%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_286" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     9.      Kookmin Bank</FONT></B>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Provider of commercial banking services</FONT>
</P>
</TD>
<TD ID="ID_78" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">3.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_285" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     10.     Shinsegae Co., Ltd.</FONT></B>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Operator of discount stores</FONT>
</P>
</TD>
<TD ID="ID_77" ALIGN="RIGHT" VALIGN="TOP">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">3.2%</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Portfolio holdings are subject to change.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">For more complete details about the Fund's investment portfolio, see page <A HREF="#portfolio">21</A>. A quarterly Fact Sheet
is&nbsp;available upon request. Please call 1-800-349-4281.</FONT></I>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Following the Fund's fiscal first and third quarter-end, a complete portfolio
holdings listing is filed with the SEC on Form N-Q. The form will be
available on the SEC's Web site at www.sec.gov, and it also may be reviewed
and copied at the SEC's Public Reference Room in Washington, D.C.
Information on the operation of the SEC's Public Reference Room may be
obtained by calling (800)&nbsp;SEC-0330.</FONT>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_14">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kornene0.gif" ALT="kor_NEW_SECTIONE0"></TD>
<TD ID="ID_119" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="portfolio" ID="portfolio"></A>Investment Portfolio      </FONT><FONT COLOR="#000000">as of December 31, 2004</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_154" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_153" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_32">
<TR>
<TD ID="ID_1226" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_1242" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Shares</FONT></B>
</P>
</TD>
<TD ID="ID_1241" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1225" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_629" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_349" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Common Stocks 84.0%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_116" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Consumer Discretionary 12.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_336" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Auto Components 4.3%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1224" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Halla Climate Control Corp. </FONT>
</P>
</TD>
<TD ID="ID_628" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">600,000</FONT>
</P>
</TD>
<TD ID="ID_627" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">5,940,881</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1223" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Hankook Tire Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_626" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">4,464,307</FONT>
</P>
</TD>
<TD ID="ID_625" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">43,987,569</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1222" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1109" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">49,928,450</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_335" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Automobiles 0.7%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1221" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Hanil E-Wha Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_624" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">706,950</FONT>
</P>
</TD>
<TD ID="ID_623" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">867,298</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1220" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Nexen Tire Corp. </FONT>
</P>
</TD>
<TD ID="ID_622" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">400,000</FONT>
</P>
</TD>
<TD ID="ID_621" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7,380,216</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1219" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1108" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">8,247,514</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_334" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Hotels Restaurants &amp; Leisure 2.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1218" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Hotel Shilla Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_620" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">858,391</FONT>
</P>
</TD>
<TD ID="ID_619" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">5,199,103</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1217" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Kangwon Land, Inc. </FONT>
</P>
</TD>
<TD ID="ID_618" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,471,530</FONT>
</P>
</TD>
<TD ID="ID_617" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">19,119,087</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1216" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1107" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">24,318,190</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_333" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Internet &amp; Catalog Retail 0.3%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1215" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">LG Home Shopping, Inc. </FONT>
</P>
</TD>
<TD ID="ID_616" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">56,200</FONT>
</P>
</TD>
<TD ID="ID_1106" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">3,474,498</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_332" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Media 0.7%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1214" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Cheil Communications, Inc. </FONT>
</P>
</TD>
<TD ID="ID_615" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">57,600</FONT>
</P>
</TD>
<TD ID="ID_1105" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">8,374,034</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_331" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Multiline Retail 4.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1213" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Shinsegae Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_614" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">135,787</FONT>
</P>
</TD>
<TD ID="ID_613" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">37,317,814</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1212" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Taegu Department Store Co., Ltd. (b) </FONT>
</P>
</TD>
<TD ID="ID_612" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,336,800</FONT>
</P>
</TD>
<TD ID="ID_611" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">9,930,440</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1211" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1104" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">47,248,254</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_330" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Textiles, Apparel &amp; Luxury Goods 0.2%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1210" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">BYC Co., Ltd. (b) </FONT>
</P>
</TD>
<TD ID="ID_610" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">39,530</FONT>
</P>
</TD>
<TD ID="ID_1103" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">1,748,912</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_115" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Consumer Staples 5.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_329" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Beverages 1.6%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1209" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Hite Brewery Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_609" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">50,000</FONT>
</P>
</TD>
<TD ID="ID_608" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">4,129,637</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1208" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Nam Yang Dairy Products Co., Ltd. (b) </FONT>
</P>
</TD>
<TD ID="ID_607" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">43,390</FONT>
</P>
</TD>
<TD ID="ID_606" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">14,963,514</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1207" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1102" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">19,093,151</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_328" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Food Products 1.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1206" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">CJ Corp. </FONT>
</P>
</TD>
<TD ID="ID_605" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">99,606</FONT>
</P>
</TD>
<TD ID="ID_604" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">6,812,311</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1205" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Nhong Shim Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_603" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">38,229</FONT>
</P>
</TD>
<TD ID="ID_602" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">9,213,809</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1204" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1101" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">16,026,120</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_327" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Household Products 0.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1203" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">LG Household &amp; Health Care Ltd. </FONT>
</P>
</TD>
<TD ID="ID_601" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">51,511</FONT>
</P>
</TD>
<TD ID="ID_1100" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">1,365,898</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_326" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Tobacco 2.0%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1202" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">KT&amp;G Corp. 144A (GDR) </FONT>
</P>
</TD>
<TD ID="ID_600" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">413,800</FONT>
</P>
</TD>
<TD ID="ID_599" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">6,082,860</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1201" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">KT&amp;G Corp. </FONT>
</P>
</TD>
<TD ID="ID_598" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">552,570</FONT>
</P>
</TD>
<TD ID="ID_597" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">16,520,519</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1200" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1099" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">22,603,379</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_114" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Energy 8.6%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_325" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Oil &amp; Gas </FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1199" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">S-Oil Corp. </FONT>
</P>
</TD>
<TD ID="ID_596" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">827,300</FONT>
</P>
</TD>
<TD ID="ID_595" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">53,544,339</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1198" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">SK Corp. </FONT>
</P>
</TD>
<TD ID="ID_594" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">826,200</FONT>
</P>
</TD>
<TD ID="ID_593" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">45,412,268</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1197" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1098" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">98,956,607</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_113" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Financials 13.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_324" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Banks 4.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1196" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Jeonbuk Bank (b) </FONT>
</P>
</TD>
<TD ID="ID_592" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">2,787,695</FONT>
</P>
</TD>
<TD ID="ID_591" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">11,848,781</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1195" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Kookmin Bank (ADR)* </FONT>
</P>
</TD>
<TD ID="ID_590" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">100,917</FONT>
</P>
</TD>
<TD ID="ID_589" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">3,943,836</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1194" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Kookmin Bank* </FONT>
</P>
</TD>
<TD ID="ID_588" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">909,198</FONT>
</P>
</TD>
<TD ID="ID_587" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">35,570,440</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1193" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1097" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">51,363,057</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_323" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Diversified Financial Services 0.5%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1192" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Nong Shim Holdings Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_586" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">22,521</FONT>
</P>
</TD>
<TD ID="ID_585" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,277,031</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1191" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samsung Securities Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_584" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">164,720</FONT>
</P>
</TD>
<TD ID="ID_583" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">3,993,887</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1190" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Telephus Co., Ltd.* (b) (d) (e) </FONT>
</P>
</TD>
<TD ID="ID_582" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">2,266,667</FONT>
</P>
</TD>
<TD ID="ID_581" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">328,439</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1189" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1096" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">5,599,357</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_322" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Insurance 8.2%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1188" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Korean Reinsurance Co. </FONT>
</P>
</TD>
<TD ID="ID_580" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,643,310</FONT>
</P>
</TD>
<TD ID="ID_579" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7,452,995</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1187" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Oriental Fire &amp; Marine Insurance Co. (b) </FONT>
</P>
</TD>
<TD ID="ID_578" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">584,860</FONT>
</P>
</TD>
<TD ID="ID_577" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">9,802,281</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1186" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samsung Fire &amp; Marine Insurance Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_576" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">979,625</FONT>
</P>
</TD>
<TD ID="ID_575" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">77,124,650</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1185" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1095" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">94,379,926</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_112" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Health Care 0.5%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_321" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Pharmaceuticals </FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1184" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Choongwae Pharma Corp. </FONT>
</P>
</TD>
<TD ID="ID_574" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">88,600</FONT>
</P>
</TD>
<TD ID="ID_573" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,566,248</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1183" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Yuhan Corp. </FONT>
</P>
</TD>
<TD ID="ID_572" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">46,500</FONT>
</P>
</TD>
<TD ID="ID_571" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">3,907,941</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1182" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1094" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">5,474,189</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_111" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Industrials 7.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_320" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Commercial Services &amp; Supplies 2.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1181" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Insun ENT Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_570" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">377,203</FONT>
</P>
</TD>
<TD ID="ID_569" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7,415,071</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1180" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">S1 Corp. </FONT>
</P>
</TD>
<TD ID="ID_568" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">564,270</FONT>
</P>
</TD>
<TD ID="ID_567" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">19,895,532</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1179" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1093" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">27,310,603</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_319" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Construction &amp; Engineering 0.3%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1178" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Ssangyong Engineering &amp; Construction Co., Ltd.* </FONT>
</P>
</TD>
<TD ID="ID_566" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">461,200</FONT>
</P>
</TD>
<TD ID="ID_1092" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">2,967,148</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_318" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Industrial Conglomerates 2.9%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1177" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Anycell, Inc. (b) (d) (e) (i) </FONT>
</P>
</TD>
<TD ID="ID_565" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,250,000</FONT>
</P>
</TD>
<TD ID="ID_564" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">0</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1176" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Daeyang E&amp;C Ltd.* </FONT>
</P>
</TD>
<TD ID="ID_563" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,153,948</FONT>
</P>
</TD>
<TD ID="ID_562" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">4,469,988</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1175" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Hyundai Mobis </FONT>
</P>
</TD>
<TD ID="ID_561" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">350,480</FONT>
</P>
</TD>
<TD ID="ID_560" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">22,175,850</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1174" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">SFA Engineering Corp. </FONT>
</P>
</TD>
<TD ID="ID_559" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">466,200</FONT>
</P>
</TD>
<TD ID="ID_558" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7,430,738</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1173" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1091" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">34,076,576</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_317" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Machinery 0.5%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1172" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">HS R&amp;A Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_557" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">144,800</FONT>
</P>
</TD>
<TD ID="ID_556" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">783,307</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1171" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samsung Climate Control Co., Ltd. (b) </FONT>
</P>
</TD>
<TD ID="ID_555" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">827,630</FONT>
</P>
</TD>
<TD ID="ID_554" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">5,092,739</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1170" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1090" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">5,876,046</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_316" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Trading Companies &amp; Distributors 0.7%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1169" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Jahwa Electronics Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_553" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">779,900</FONT>
</P>
</TD>
<TD ID="ID_1089" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">8,061,177</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_315" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Transportation Infrastructure 0.6%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1168" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Korea Express Co., Ltd.* </FONT>
</P>
</TD>
<TD ID="ID_552" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">301,880</FONT>
</P>
</TD>
<TD ID="ID_1088" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">7,392,444</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_110" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Information Technology 19.9%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_314" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Computers &amp; Peripherals 0.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1167" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Ahnlab, Inc.* </FONT>
</P>
</TD>
<TD ID="ID_551" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">89,600</FONT>
</P>
</TD>
<TD ID="ID_1087" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">1,471,407</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_313" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Electronic Equipment &amp; Instruments 4.2%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1166" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Dae Duck Electronics Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_550" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">360,901</FONT>
</P>
</TD>
<TD ID="ID_549" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">3,165,553</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1165" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Hankuk Electric Glass Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_548" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">142,400</FONT>
</P>
</TD>
<TD ID="ID_547" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">6,589,026</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1164" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Interflex Co., Ltd. (b)</FONT>
</P>
</TD>
<TD ID="ID_546" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">667,800</FONT>
</P>
</TD>
<TD ID="ID_545" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">11,192,359</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1163" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Mtekvision Co., Ltd.* </FONT>
</P>
</TD>
<TD ID="ID_544" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">83,200</FONT>
</P>
</TD>
<TD ID="ID_543" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">2,620,093</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1162" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samsung SDI Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_542" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">209,956</FONT>
</P>
</TD>
<TD ID="ID_541" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">22,918,304</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1161" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">SE Co., Ltd. (b) (d) (e) </FONT>
</P>
</TD>
<TD ID="ID_540" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">636,950</FONT>
</P>
</TD>
<TD ID="ID_539" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,932,016</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1160" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1086" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">48,417,351</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_312" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Internet Software &amp; Services 0.5%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1159" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">NCsoft Corp.* </FONT>
</P>
</TD>
<TD ID="ID_538" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">70,000</FONT>
</P>
</TD>
<TD ID="ID_1085" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">5,666,538</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_311" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Semiconductors &amp; Semiconductor Equipment 15.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1158" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">NEPES Corp.* </FONT>
</P>
</TD>
<TD ID="ID_537" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">358,890</FONT>
</P>
</TD>
<TD ID="ID_536" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">3,362,860</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1157" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Phicom Corp.* </FONT>
</P>
</TD>
<TD ID="ID_535" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,060,000</FONT>
</P>
</TD>
<TD ID="ID_534" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">5,908,230</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1156" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samsung Electronics Co., Ltd. (j) </FONT>
</P>
</TD>
<TD ID="ID_533" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">340,299</FONT>
</P>
</TD>
<TD ID="ID_532" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">148,091,866</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1155" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Seoul Semiconductor Co., Ltd. (b) </FONT>
</P>
</TD>
<TD ID="ID_531" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,003,900</FONT>
</P>
</TD>
<TD ID="ID_530" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">16,195,064</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1154" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1084" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">173,558,020</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_109" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Materials 11.5%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_310" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Chemicals 1.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1153" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Korea Fine Chemical Co. </FONT>
</P>
</TD>
<TD ID="ID_529" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">3,803</FONT>
</P>
</TD>
<TD ID="ID_528" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">32,659</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1152" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">LG Chemical Ltd. </FONT>
</P>
</TD>
<TD ID="ID_527" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">212,486</FONT>
</P>
</TD>
<TD ID="ID_526" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">8,467,009</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1151" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samsung Fine Chemicals Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_525" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">425,000</FONT>
</P>
</TD>
<TD ID="ID_524" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7,307,767</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1150" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1083" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">15,807,435</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_309" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Construction Materials 0.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1149" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Sungshin Cement Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_523" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">276,200</FONT>
</P>
</TD>
<TD ID="ID_1082" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">4,669,146</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_308" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Containers &amp; Packaging 0.3%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1148" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Youlchon Chemical Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_522" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">351,300</FONT>
</P>
</TD>
<TD ID="ID_1081" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">3,393,547</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_307" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Metals &amp; Mining 9.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1147" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Dongkuk Steel Mill Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_521" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,170,900</FONT>
</P>
</TD>
<TD ID="ID_520" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">20,189,881</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1146" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Korea Iron &amp; Steel Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_519" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">227,200</FONT>
</P>
</TD>
<TD ID="ID_518" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">5,311,283</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1145" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">POSCO </FONT>
</P>
</TD>
<TD ID="ID_517" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">443,000</FONT>
</P>
</TD>
<TD ID="ID_516" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">80,024,150</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1144" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samwoo EMC Co., Ltd. (b)</FONT>
</P>
</TD>
<TD ID="ID_515" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">754,800</FONT>
</P>
</TD>
<TD ID="ID_514" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">2,307,711</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1143" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">SeAH Steel Corp. </FONT>
</P>
</TD>
<TD ID="ID_513" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">77,110</FONT>
</P>
</TD>
<TD ID="ID_512" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,229,052</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1142" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1080" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">109,062,077</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_108" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Telecommunication Services 5.5%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_306" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Wireless Telecommunication Services </FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1141" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">SK Telecom Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_511" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">329,990</FONT>
</P>
</TD>
<TD ID="ID_1079" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">62,797,556</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1140" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"><B>Total Common Stocks</B> (Cost $355,310,288) </FONT>
</P>
</TD>
<TD ID="ID_1078" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">968,728,607</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_107" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_31">
<TR>
<TD ID="ID_1139" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_1240" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Principal</FONT></B>
</P>
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Amount ($)</FONT></B>
</P>
</TD>
<TD ID="ID_1238" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1138" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_510" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_348" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Convertible Bond 0.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_106" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Consumer Staples 0.0%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1137" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Haitai Confectionery Loan Certificates, Zero Coupon,
11/28/2009 (d) (f) (g) </FONT>
</P>
</TD>
<TD ID="ID_509" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">15,820,881</FONT>
</P>
</TD>
<TD ID="ID_1077" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">14,108</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_105" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Financials 0.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1136" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">LG Card Co., Ltd., 3.0%, 2/12/2009 </FONT>
</P>
</TD>
<TD ID="ID_508" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">6,000,000,000</FONT>
</P>
</TD>
<TD ID="ID_1076" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">4,868,624</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1135" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"><B>Total Convertible Bond</B> (Cost $2,617,328) </FONT>
</P>
</TD>
<TD ID="ID_1075" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">4,882,732</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_30">
<TR>
<TD ID="ID_1134" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_1252" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Shares</FONT></B>
</P>
</TD>
<TD ID="ID_1235" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1133" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_507" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_347" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Preferred Stocks 15.2%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_104" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Consumer Discretionary 5.6%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_305" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Automobiles 5.6%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1132" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Hyundai Motor Co. 144A (GDR) </FONT>
</P>
</TD>
<TD ID="ID_506" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">3,020,000</FONT>
</P>
</TD>
<TD ID="ID_505" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">42,280,000</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1131" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Hyundai Motor Co. (2nd) </FONT>
</P>
</TD>
<TD ID="ID_504" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">738,593</FONT>
</P>
</TD>
<TD ID="ID_503" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">22,153,509</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1130" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1074" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">64,433,509</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_304" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Hotels Restaurants &amp; Leisure 0.0%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1129" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Hotel Shilla Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_502" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">32,070</FONT>
</P>
</TD>
<TD ID="ID_1073" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">150,251</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_103" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Consumer Staples 1.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_303" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Beverages 0.0%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1128" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Nam Yang Dairy Products Co., Ltd. (b) </FONT>
</P>
</TD>
<TD ID="ID_501" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,160</FONT>
</P>
</TD>
<TD ID="ID_1072" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">246,522</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_302" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Food Products 1.3%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1127" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">CJ Corp. </FONT>
</P>
</TD>
<TD ID="ID_500" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">297,200</FONT>
</P>
</TD>
<TD ID="ID_499" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">10,220,556</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1126" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">CJ Corp. (2nd) </FONT>
</P>
</TD>
<TD ID="ID_498" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">50,335</FONT>
</P>
</TD>
<TD ID="ID_497" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">2,645,116</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1125" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">CJ Corp. (3rd) (convertible)</FONT>
</P>
</TD>
<TD ID="ID_496" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">30,201</FONT>
</P>
</TD>
<TD ID="ID_495" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,554,978</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1124" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"> </FONT>
</P>
</TD>
<TD ID="ID_1071" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">14,420,650</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_301" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Household Products 0.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1123" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">LG Household &amp; Health Care Ltd. </FONT>
</P>
</TD>
<TD ID="ID_494" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">46,788</FONT>
</P>
</TD>
<TD ID="ID_1070" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">881,343</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_102" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Energy 0.5%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_300" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Oil &amp; Gas </FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1122" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">S-Oil Corp. </FONT>
</P>
</TD>
<TD ID="ID_493" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">156,040</FONT>
</P>
</TD>
<TD ID="ID_1069" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">5,441,503</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_101" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Financials 2.2%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_299" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Diversified Financial Services 0.5%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1121" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Daishin Securities Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_492" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">665,500</FONT>
</P>
</TD>
<TD ID="ID_1068" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">5,753,695</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_298" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Insurance 1.7%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1120" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samsung Fire &amp; Marine Insurance Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_491" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">533,850</FONT>
</P>
</TD>
<TD ID="ID_1067" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">20,060,631</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_100" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Information Technology 5.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_297" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Electronic Equipment &amp; Instruments 0.2%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1119" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samsung SDI Co., Ltd. </FONT>
</P>
</TD>
<TD ID="ID_490" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">34,318</FONT>
</P>
</TD>
<TD ID="ID_1066" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">2,201,232</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_296" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Semiconductors &amp; Semiconductor Equipment 4.9%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1118" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samsung Electronics Co., Ltd. (j) </FONT>
</P>
</TD>
<TD ID="ID_489" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">198,201</FONT>
</P>
</TD>
<TD ID="ID_1065" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">57,151,273</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_99" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Materials 0.4%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_295" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#3300d9">Chemicals </FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1117" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">LG Chemical Ltd. </FONT>
</P>
</TD>
<TD ID="ID_488" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">193,003</FONT>
</P>
</TD>
<TD ID="ID_1064" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">4,716,940</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1116" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"><B>Total Preferred Stocks</B> (Cost $38,781,505) </FONT>
</P>
</TD>
<TD ID="ID_1063" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">175,457,549</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_98" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_346" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Investment Fund 0.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1115" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Hankang Restructuring Fund (d) (h) (i) (Cost $1,644,658) </FONT>
</P>
</TD>
<TD ID="ID_487" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,724,310</FONT>
</P>
</TD>
<TD ID="ID_1062" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">1,465,797</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_97" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_345" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Cash Equivalents 0.1%</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1114" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Scudder Cash Management QP Trust, 2.24% (c)
(Cost&nbsp;$642,223) </FONT>
</P>
</TD>
<TD ID="ID_486" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">642,223</FONT>
</P>
</TD>
<TD ID="ID_1061" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">642,223</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_29">
<TR>
<TD ID="ID_1113" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_1234" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">% of
Net&nbsp;Assets</FONT></B>
</P>
</TD>
<TD ID="ID_1233" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1112" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_485" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1111" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"><B>Total Investment Portfolio</B> (Cost $398,996,002) (a)</FONT>
</P>
</TD>
<TD ID="ID_1041" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        99.8</FONT>
</P>
</TD>
<TD ID="ID_1060" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
<P ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">1,151,176,908</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_206" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Other Assets and Liabilities, Net </FONT></B>
</P>
</TD>
<TD ID="ID_1040" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        0.2</FONT>
</P>
</TD>
<TD ID="ID_795" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     2,244,797</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1110" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000"><B>Net Assets</B></FONT>
</P>
</TD>
<TD ID="ID_1039" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        100.0</FONT>
</P>
</TD>
<TD ID="ID_794" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     1,153,421,705</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">*    Non-income producing security.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(a)  The cost for federal income tax purposes was $401,123,190. At December 31, 2004, net
unrealized appreciation for all securities based on tax cost was $750,053,718. This consisted of
aggregate gross unrealized appreciation for all securities in which there was an excess of value
over tax cost of $761,063,272 and aggregate gross unrealized depreciation for all securities in
which there was an excess of tax cost over value of $11,009,554.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(b)  Affiliated issuers (see Notes to Financial Statements).</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(c)  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.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(d)  Securities valued at fair value by management and approved in good faith following procedures
approved by the Directors, amounted to $3,740,360 (0.3% of net assets at December 31, 2004).
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 December 31, 2004
aggregated $12,621,745. The securities may also have certain restrictions as to resale.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(e)  The Fund may purchase securities that are subject to legal or contractual restrictions on resale
(&quot;restricted securities&quot;). Restricted securities are securities which have not been registered with the
Securities and Exchange Commission under the Securities Act of 1933. The Fund may be unable to
sell a restricted security and it may be more difficult to determine a market value for a restricted
security. Moreover, if adverse market conditions were to develop during the period between the
Fund's decision to sell a restricted security and the point at which the Fund is permitted or able to
sell such a security, the Fund might obtain a price less favorable than the price that prevailed when
it decided to sell. This investment practice, therefore, could have the effect of increasing the level
of illiquidity of the Fund.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">     The issuer of SE Co., Ltd. has given the Fund a put option at cost, payable on demand until it has
an initial public offering. Information concerning such private placement securities at December 31,
2004 is as follows:</FONT></I>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_28">
<TR>
<TD ID="ID_170" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Restricted
Securities</FONT></B>
</P>
</TD>
<TD ID="ID_229" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Acquisition
Date</FONT></B>
</P>
</TD>
<TD ID="ID_228" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Cost ($)</FONT></B>
</P>
</TD>
<TD ID="ID_227" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
<TD ID="ID_226" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">As a % <BR>
of Net Assets</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_455" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Anycell, Inc.</FONT>
</P>
</TD>
<TD ID="ID_1038" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        12/22/2000</FONT>
</P>
</TD>
<TD ID="ID_1037" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        2,020,774</FONT>
</P>
</TD>
<TD ID="ID_1036" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_1035" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_454" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">SE Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_1034" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        12/22/2000</FONT>
</P>
</TD>
<TD ID="ID_1033" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,616,637</FONT>
</P>
</TD>
<TD ID="ID_1032" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,932,016</FONT>
</P>
</TD>
<TD ID="ID_1031" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        0.2%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_453" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Telephus Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_1030" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        6/10/2004</FONT>
</P>
</TD>
<TD ID="ID_1029" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        2,919,708</FONT>
</P>
</TD>
<TD ID="ID_1028" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        328,439</FONT>
</P>
</TD>
<TD ID="ID_1027" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        0.0%</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_205" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Total Restricted Securities</FONT></B>
</P>
</TD>
<TD ID="ID_793" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     6,557,119</FONT></B>
</P>
</TD>
<TD ID="ID_792" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     2,260,455</FONT></B>
</P>
</TD>
<TD ID="ID_791" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     0.2%</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(f)  Company in restructuring process, principal only subject to repayment.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(g)  Principal amount stated in Korean Won.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(h)  The Fund owns 1.36% of the outstanding shares of Hankang Restructuring Fund, which is
managed by Deutsche Investment Management Americas Inc.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(i)  Company is in process of liquidation.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">(j)  At December 31, 2004, 17.8% of the Fund's investment portfolio is invested in Samsung
Electronics&nbsp;Co.,&nbsp;Ltd.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">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.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">ADR: American Depositary Receipt</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">GDR: Global Depositary Receipt </FONT></I>
</P>
<P ALIGN="LEFT">
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_13">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kornend0.gif" ALT="kor_NEW_SECTIOND0"></TD>
<TD ID="ID_51" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="fins" ID="fins"></A>Financial Statements</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_152" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_151" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_35">
<TR>
<TD ID="ID_344" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Statement of Assets and Liabilities</FONT><FONT SIZE="-2" COLOR="#000000"> </FONT></B><FONT SIZE="-2" COLOR="#ffffff">as of December 31, 2004 </FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_96" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Assets</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_452" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Investments in securities, at value:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Unaffiliated issuers (cost $329,806,576)</FONT>
</P>
</TD>
<TD ID="ID_1026" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">$       1,064,945,907</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_364" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Affiliated issuers (cost $68,547,203)</FONT>
</P>
</TD>
<TD ID="ID_1025" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        85,588,778</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_363" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Investment in Scudder Cash Management QP Trust, at value
(cost&nbsp;$642,223)</FONT>
</P>
</TD>
<TD ID="ID_1024" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        642,223</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_451" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Total investments in securities, at value (cost $398,996,002)</FONT>
</P>
</TD>
<TD ID="ID_1023" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,151,176,908</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_450" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Korean Won, at value (cost $14,706,593)</FONT>
</P>
</TD>
<TD ID="ID_1022" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        15,299,141</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_449" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Receivable for investments sold</FONT>
</P>
</TD>
<TD ID="ID_1021" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        17,168</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_448" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Dividends receivable</FONT>
</P>
</TD>
<TD ID="ID_1020" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        17,267,543</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_447" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Interest receivable</FONT>
</P>
</TD>
<TD ID="ID_1019" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        61,877</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_446" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Other assets</FONT>
</P>
</TD>
<TD ID="ID_1018" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        48,238</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_445" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Total assets</FONT>
</P>
</TD>
<TD ID="ID_1017" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,183,870,875</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_95" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Liabilities</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_444" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Distributions payable</FONT>
</P>
</TD>
<TD ID="ID_1016" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        29,055,971</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_443" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Accrued management fee</FONT>
</P>
</TD>
<TD ID="ID_1015" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        542,140</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_442" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Other accrued expenses and payables</FONT>
</P>
</TD>
<TD ID="ID_1014" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        851,059</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_441" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Total liabilities</FONT>
</P>
</TD>
<TD ID="ID_1013" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        30,449,170</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_204" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Net assets, at value</FONT></B>
</P>
</TD>
<TD ID="ID_790" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    1,153,421,705</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_94" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Net Assets</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_440" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net assets consist of:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Accumulated distributions in excess of net investment income</FONT>
</P>
</TD>
<TD ID="ID_1012" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (390,770)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_438" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net unrealized appreciation (depreciation) on:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Investments</FONT>
</P>
</TD>
<TD ID="ID_1011" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        752,180,906</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_361" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Won related transactions</FONT>
</P>
</TD>
<TD ID="ID_1010" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        672,495</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_437" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Accumulated net realized gain (loss)</FONT>
</P>
</TD>
<TD ID="ID_1009" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (7,266,378)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_436" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Cost of 5,307,409 shares held in treasury</FONT>
</P>
</TD>
<TD ID="ID_1008" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (113,730,575)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_435" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Paid-in capital</FONT>
</P>
</TD>
<TD ID="ID_1007" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        521,956,027</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_203" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Net assets, at value</FONT></B>
</P>
</TD>
<TD ID="ID_789" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    1,153,421,705</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_434" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Net Asset Value</FONT></B><FONT SIZE="-2" COLOR="#000000"> per share ($1,153,421,705 &divide; 44,701,493 shares of common
stock issued and outstanding, $.01 par value, 200,000,000 shares
authorized)</FONT>
</P>
</TD>
<TD ID="ID_788" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    25.80</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_34">
<TR>
<TD ID="ID_343" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Statement of Operations </FONT></B><FONT SIZE="-2" COLOR="#ffffff">for the six months ended December 31, 2004</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_93" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Investment Income</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_433" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Income:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Dividends &#151; unaffiliated issuers (net of foreign taxes withheld
of&nbsp;$3,787,760)</FONT>
</P>
</TD>
<TD ID="ID_1006" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">$       18,768,798</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_431" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Dividends &#151; affiliated issuers (net of foreign taxes withheld of $144,150)</FONT>
</P>
</TD>
<TD ID="ID_1005" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        726,447</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_430" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Interest (net of foreign taxes withheld of $44,580)</FONT>
</P>
</TD>
<TD ID="ID_1004" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        345,283</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_429" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Interest &#151; Scudder Cash Management QP Trust</FONT>
</P>
</TD>
<TD ID="ID_1003" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        34,552</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_428" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Total Income </FONT>
</P>
</TD>
<TD ID="ID_1002" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        19,875,080</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_427" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Expenses:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Management fee</FONT>
</P>
</TD>
<TD ID="ID_1001" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        4,535,804</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_425" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Services to shareholders</FONT>
</P>
</TD>
<TD ID="ID_1000" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        23,645</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_424" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Custodian and accounting fees</FONT>
</P>
</TD>
<TD ID="ID_999" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        891,914</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_423" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Auditing</FONT>
</P>
</TD>
<TD ID="ID_998" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        78,560</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_422" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Legal</FONT>
</P>
</TD>
<TD ID="ID_997" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        340,500</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_421" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Directors' fees and expenses</FONT>
</P>
</TD>
<TD ID="ID_996" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        57,016</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_420" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Reports to shareholders</FONT>
</P>
</TD>
<TD ID="ID_995" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        141,523</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_419" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Stock exchange listing fees</FONT>
</P>
</TD>
<TD ID="ID_994" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        36,720</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_418" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Other</FONT>
</P>
</TD>
<TD ID="ID_993" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        214,992</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_417" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Total expenses, before expense reductions</FONT>
</P>
</TD>
<TD ID="ID_992" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        6,320,674</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_416" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Expense reductions</FONT>
</P>
</TD>
<TD ID="ID_991" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (34,498)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_415" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Total expenses, after expense reductions</FONT>
</P>
</TD>
<TD ID="ID_990" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        6,286,176</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_202" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Net investment income (loss)</FONT></B>
</P>
</TD>
<TD ID="ID_787" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     13,588,904</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_92" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Realized and Unrealized Gain (Loss) on Investment Transactions</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_414" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net realized gain (loss) from:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Investments &#151; Unaffiliated issuers</FONT>
</P>
</TD>
<TD ID="ID_989" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (4,727,266)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_412" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Won related transactions</FONT>
</P>
</TD>
<TD ID="ID_988" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,884,017</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_411" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_987" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (2,843,249)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_410" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net unrealized appreciation (depreciation) during the period on:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Investments</FONT>
</P>
</TD>
<TD ID="ID_986" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        208,682,106</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_408" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Won related transactions</FONT>
</P>
</TD>
<TD ID="ID_985" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (82,597)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_407" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_984" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        208,599,509</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_201" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Net gain (loss) on investment transactions</FONT></B>
</P>
</TD>
<TD ID="ID_786" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     205,756,260</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_200" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Net increase (decrease) in net assets resulting from operations</FONT></B>
</P>
</TD>
<TD ID="ID_785" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    219,345,164</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_33">
<TR>
<TD ID="ID_342" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Statement of Changes in Net Assets</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_91" ALIGN="LEFT" VALIGN="BOTTOM" >
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Increase (Decrease) in Net Assets</FONT></B>
</P>
</TD>
<TD ID="ID_225" ALIGN="CENTER" VALIGN="BOTTOM" >
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Six Months
Ended
December 31,
2004</FONT></B>
</P>
</TD>
<TD ID="ID_224" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Year Ended
June 30,</FONT></B>
</P>
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2004</FONT></B>
</P>
</TD>
</TR>



<TR>
<TD ID="ID_406" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Operations:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net investment income (loss)</FONT>
</P>
</TD>
<TD ID="ID_983" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">$       13,588,904</FONT>
</P>
</TD>
<TD ID="ID_982" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">$       9,496,042</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_404" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net realized gain (loss) on investment transactions</FONT>
</P>
</TD>
<TD ID="ID_981" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (2,843,249)</FONT>
</P>
</TD>
<TD ID="ID_980" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        22,465,941</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_403" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net unrealized appreciation (depreciation) during the
period on investment transactions </FONT>
</P>
</TD>
<TD ID="ID_979" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        208,599,509</FONT>
</P>
</TD>
<TD ID="ID_978" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        179,501,753</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_402" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net increase (decrease) in net assets resulting from
operations</FONT>
</P>
</TD>
<TD ID="ID_977" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        219,345,164</FONT>
</P>
</TD>
<TD ID="ID_976" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        211,463,736</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_401" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Distributions to shareholders from:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net investment income</FONT>
</P>
</TD>
<TD ID="ID_975" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (20,115,672)</FONT>
</P>
</TD>
<TD ID="ID_974" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (14,901,571)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_399" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net realized gains</FONT>
</P>
</TD>
<TD ID="ID_973" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (8,940,300)</FONT>
</P>
</TD>
<TD ID="ID_972" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_398" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Fund share transactions:</FONT>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Cost of shares repurchased</FONT>
</P>
</TD>
<TD ID="ID_971" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_970" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (3,258,069)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_396" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Cost of shares tendered</FONT>
</P>
</TD>
<TD ID="ID_969" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_968" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (108,814,019)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_395" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net increase (decrease) in net assets from Fund share
transactions</FONT>
</P>
</TD>
<TD ID="ID_967" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_966" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (112,072,088)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_199" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Increase (decrease) in net assets</FONT></B>
</P>
</TD>
<TD ID="ID_965" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        190,289,192</FONT>
</P>
</TD>
<TD ID="ID_964" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        84,490,077</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_394" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net assets at beginning of period</FONT>
</P>
</TD>
<TD ID="ID_963" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        963,132,513</FONT>
</P>
</TD>
<TD ID="ID_962" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        878,642,436</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_393" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net assets at end of period (including accumulated
distributions in excess of net investment income and
undistributed net investment income of $390,770
and&nbsp;$6,135,998,&nbsp;respectively)</FONT>
</P>
</TD>
<TD ID="ID_784" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    1,153,421,705</FONT></B>
</P>
</TD>
<TD ID="ID_783" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    963,132,513</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_90" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Other Information</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_392" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Shares outstanding at beginning of period</FONT>
</P>
</TD>
<TD ID="ID_961" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        44,701,493</FONT>
</P>
</TD>
<TD ID="ID_960" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        49,863,602</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_391" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Shares repurchased</FONT>
</P>
</TD>
<TD ID="ID_959" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_958" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (195,700)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_390" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Shares tendered</FONT>
</P>
</TD>
<TD ID="ID_957" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_956" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (4,966,409)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_389" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net increase (decrease) in Fund shares</FONT>
</P>
</TD>
<TD ID="ID_955" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_954" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (5,162,109)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_388" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Shares outstanding at end of period</FONT>
</P>
</TD>
<TD ID="ID_953" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        44,701,493</FONT>
</P>
</TD>
<TD ID="ID_952" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        44,701,493</FONT>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT">
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_12">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kornenc0.gif" ALT="kor_NEW_SECTIONC0"></TD>
<TD ID="ID_50" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="high" ID="high"></A>Financial Highlights</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_150" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_149" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_36">
<TR>
<TD ID="ID_341" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Years Ended June 30,</FONT></B>
</P>
</TD>
<TD ID="ID_1047" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2004<SUP>a</SUP></FONT></B>
</P>
</TD>
<TD ID="ID_1046" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2004</FONT></B>
</P>
</TD>
<TD ID="ID_1045" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2003</FONT></B>
</P>
</TD>
<TD ID="ID_1044" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2002</FONT></B>
</P>
</TD>
<TD ID="ID_1043" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2001</FONT></B>
</P>
</TD>
<TD ID="ID_1042" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2000</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_89" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="7">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Per Share Operating Performance</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_198" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Net asset value, beginning of
period</FONT></B>
</P>
</TD>
<TD ID="ID_782" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    21.55</FONT></B>
</P>
</TD>
<TD ID="ID_781" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    17.62</FONT></B>
</P>
</TD>
<TD ID="ID_780" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    20.20</FONT></B>
</P>
</TD>
<TD ID="ID_779" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    13.01</FONT></B>
</P>
</TD>
<TD ID="ID_778" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    20.04</FONT></B>
</P>
</TD>
<TD ID="ID_777" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    17.72</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_356" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="7">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Income (loss) from investment operations</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_360" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net investment income (loss)<SUP>b</SUP></FONT>
</P>
</TD>
<TD ID="ID_951" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .30</FONT>
</P>
</TD>
<TD ID="ID_950" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .20</FONT>
</P>
</TD>
<TD ID="ID_949" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .17</FONT>
</P>
</TD>
<TD ID="ID_948" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .11</FONT>
</P>
</TD>
<TD ID="ID_947" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .17</FONT>
</P>
</TD>
<TD ID="ID_946" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .05</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_359" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net realized and unrealized
gain (loss) on investment
transactions</FONT>
</P>
</TD>
<TD ID="ID_945" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        4.60</FONT>
</P>
</TD>
<TD ID="ID_944" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        3.90</FONT>
</P>
</TD>
<TD ID="ID_943" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (1.90)</FONT>
</P>
</TD>
<TD ID="ID_942" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        7.20</FONT>
</P>
</TD>
<TD ID="ID_941" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (5.61)</FONT>
</P>
</TD>
<TD ID="ID_940" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        2.27</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_367" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Total from investment
operations</FONT></B>
</P>
</TD>
<TD ID="ID_939" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        4.90</FONT>
</P>
</TD>
<TD ID="ID_938" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        4.10</FONT>
</P>
</TD>
<TD ID="ID_937" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (1.73)</FONT>
</P>
</TD>
<TD ID="ID_936" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        7.31</FONT>
</P>
</TD>
<TD ID="ID_935" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (5.44)</FONT>
</P>
</TD>
<TD ID="ID_934" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        2.32</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_358" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Less distributions from:</FONT></I>
</P>
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net investment income</FONT>
</P>
</TD>
<TD ID="ID_933" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.45)</FONT>
</P>
</TD>
<TD ID="ID_932" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.30)</FONT>
</P>
</TD>
<TD ID="ID_931" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.18)</FONT>
</P>
</TD>
<TD ID="ID_930" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_929" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.18)</FONT>
</P>
</TD>
<TD ID="ID_928" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_357" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net realized gains on
investment transactions</FONT>
</P>
</TD>
<TD ID="ID_927" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.20)</FONT>
</P>
</TD>
<TD ID="ID_926" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_925" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.67)</FONT>
</P>
</TD>
<TD ID="ID_924" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.12)</FONT>
</P>
</TD>
<TD ID="ID_923" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (1.41)</FONT>
</P>
</TD>
<TD ID="ID_922" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_366" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Total distributions</FONT></B>
</P>
</TD>
<TD ID="ID_921" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.65)</FONT>
</P>
</TD>
<TD ID="ID_920" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.30)</FONT>
</P>
</TD>
<TD ID="ID_919" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.85)</FONT>
</P>
</TD>
<TD ID="ID_918" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (.12)</FONT>
</P>
</TD>
<TD ID="ID_917" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (1.59)</FONT>
</P>
</TD>
<TD ID="ID_916" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_387" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">NAV accretion resulting from
repurchases, shares tendered and
reinvestment of distributions for
shares at value</FONT>
</P>
</TD>
<TD ID="ID_915" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_914" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .13</FONT>
</P>
</TD>
<TD ID="ID_913" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .00<SUP>c</SUP></FONT>
</P>
</TD>
<TD ID="ID_912" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .00<SUP>c</SUP></FONT>
</P>
</TD>
<TD ID="ID_911" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_910" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_197" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Net asset value, end of period</FONT></B>
</P>
</TD>
<TD ID="ID_776" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    25.80</FONT></B>
</P>
</TD>
<TD ID="ID_775" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    21.55</FONT></B>
</P>
</TD>
<TD ID="ID_774" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    17.62</FONT></B>
</P>
</TD>
<TD ID="ID_773" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    20.20</FONT></B>
</P>
</TD>
<TD ID="ID_772" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    13.01</FONT></B>
</P>
</TD>
<TD ID="ID_771" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    20.04</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_196" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Market value, end of period</FONT></B>
</P>
</TD>
<TD ID="ID_770" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    24.06</FONT></B>
</P>
</TD>
<TD ID="ID_769" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    18.85</FONT></B>
</P>
</TD>
<TD ID="ID_768" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    14.99</FONT></B>
</P>
</TD>
<TD ID="ID_767" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    16.44</FONT></B>
</P>
</TD>
<TD ID="ID_766" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    10.58</FONT></B>
</P>
</TD>
<TD ID="ID_765" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    14.06</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_88" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="7">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Total Return</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_386" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Per share net asset value (%)<SUP>d</SUP></FONT>
</P>
</TD>
<TD ID="ID_909" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        22.93<SUP>**</SUP></FONT>
</P>
</TD>
<TD ID="ID_908" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        24.15</FONT>
</P>
</TD>
<TD ID="ID_907" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (8.34)</FONT>
</P>
</TD>
<TD ID="ID_906" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        56.39</FONT>
</P>
</TD>
<TD ID="ID_905" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (25.01)</FONT>
</P>
</TD>
<TD ID="ID_904" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        13.09</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_385" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Per share market value (%)<SUP>d</SUP></FONT>
</P>
</TD>
<TD ID="ID_903" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        31.13<SUP>**</SUP></FONT>
</P>
</TD>
<TD ID="ID_902" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        27.66</FONT>
</P>
</TD>
<TD ID="ID_901" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (4.29)</FONT>
</P>
</TD>
<TD ID="ID_900" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        56.71</FONT>
</P>
</TD>
<TD ID="ID_899" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (13.16)</FONT>
</P>
</TD>
<TD ID="ID_898" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        (5.46)</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_87" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="7">
<P ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#000000">Ratios to Average Net Assets and Supplemental Data</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_384" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Net assets, end of period
($&nbsp;millions)</FONT>
</P>
</TD>
<TD ID="ID_897" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,153</FONT>
</P>
</TD>
<TD ID="ID_896" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        963</FONT>
</P>
</TD>
<TD ID="ID_895" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        879</FONT>
</P>
</TD>
<TD ID="ID_894" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,009</FONT>
</P>
</TD>
<TD ID="ID_893" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        651</FONT>
</P>
</TD>
<TD ID="ID_892" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,002</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_383" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Ratio of expenses before expense
reductions&nbsp;(%)</FONT>
</P>
</TD>
<TD ID="ID_891" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.24<SUP>*</SUP></FONT>
</P>
</TD>
<TD ID="ID_890" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.27</FONT>
</P>
</TD>
<TD ID="ID_889" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.26</FONT>
</P>
</TD>
<TD ID="ID_888" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.21</FONT>
</P>
</TD>
<TD ID="ID_887" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.24</FONT>
</P>
</TD>
<TD ID="ID_886" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.20</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_382" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Ratio of expenses after expense
reductions&nbsp;(%)</FONT>
</P>
</TD>
<TD ID="ID_885" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.24<SUP>*</SUP></FONT>
</P>
</TD>
<TD ID="ID_884" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.27</FONT>
</P>
</TD>
<TD ID="ID_883" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.26</FONT>
</P>
</TD>
<TD ID="ID_882" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.21</FONT>
</P>
</TD>
<TD ID="ID_881" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.23</FONT>
</P>
</TD>
<TD ID="ID_880" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.19</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_381" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Ratio of net investment income
(loss)&nbsp;(%)</FONT>
</P>
</TD>
<TD ID="ID_879" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.35<SUP>e**</SUP></FONT>
</P>
</TD>
<TD ID="ID_878" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .94</FONT>
</P>
</TD>
<TD ID="ID_877" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .99</FONT>
</P>
</TD>
<TD ID="ID_876" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .69</FONT>
</P>
</TD>
<TD ID="ID_875" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1.18</FONT>
</P>
</TD>
<TD ID="ID_874" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        .24</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_380" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Portfolio turnover rate&nbsp;(%)</FONT>
</P>
</TD>
<TD ID="ID_873" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        6<SUP>*</SUP></FONT>
</P>
</TD>
<TD ID="ID_872" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        20</FONT>
</P>
</TD>
<TD ID="ID_871" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        7</FONT>
</P>
</TD>
<TD ID="ID_870" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        18</FONT>
</P>
</TD>
<TD ID="ID_869" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        40</FONT>
</P>
</TD>
<TD ID="ID_868" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        31</FONT>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000"><SUP>a</SUP> For the six months ended December 31, 2004.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000"><SUP>b</SUP> Based on average shares outstanding during the period.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000"><SUP>c</SUP> Amount is less than $.005 per share.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000"><SUP>d</SUP> Total return based on net asset value reflects changes in the Fund's net asset value during the
period. Total return based on market value reflects changes in market value. Each figure includes
reinvestments of distributions. These figures will differ depending upon the level of any discount
from, or premium to, net asset value at which the Fund's shares trade during the period.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000"><SUP>e</SUP> The ratio for six months ended December 31, 2004 has not been annualized since the Fund
believes it would not be appropriate because the Fund, which has a June 30 year-end, earns
substantially less dividend income in the second half of its year than in the first half of each year.</FONT></I>
</P>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000"><SUP>*</SUP> Annualized<SUP> </SUP>  <SUP>**</SUP>   Not annualized</FONT></I>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_11">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kornenb0.gif" ALT="kor_NEW_SECTIONB0"></TD>
<TD ID="ID_49" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="notes" ID="notes"></A>Notes to Financial Statements     </FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_148" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_147" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">A. Significant Accounting Policies</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Korea Fund, Inc. (the &quot;Fund&quot;) is registered under the Investment Company Act
of 1940, as amended (the &quot;1940 Act&quot;), as a closed-end, non-diversified management
investment company organized as a Maryland corporation.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America which require the use of
management estimates. Actual results could differ from those estimates. The policies
described below are followed consistently by the Fund in the preparation of its
financial statements.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Security Valuation.</FONT></B> Investments are stated at value determined as of the close of
regular trading on the New York Stock Exchange on each day the exchange is open
for trading. Equity securities are valued at the most recent sale price or official closing
price reported on the exchange (US or foreign) or over-the-counter market on which
the security is traded most extensively. Securities for which no sales are reported are
valued at the calculated mean between the most recent bid and asked quotations on
the relevant market or, if a mean cannot be determined, at the most recent bid
quotation. Debt securities are valued by independent pricing services approved by the
Directors of the Fund. If the pricing services are unable to provide valuations,
securities are valued at the most recent bid quotation or evaluated price, as applicable,
obtained from a broker-dealer. Such services may use various pricing techniques
which take into account appropriate factors such as yield, quality, coupon rate,
maturity, type of issue, trading characteristics and other data, as well as broker quotes.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Money market instruments purchased with an original or remaining maturity of sixty
days or less, maturing at par, are valued at amortized cost. Investments in open-end
investment companies and Scudder Cash Management QP Trust are valued at their
net asset value each business day.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Securities and other assets for which market quotations are not readily available or for
which the above valuation procedures are deemed not to reflect fair value are valued
in a manner that is intended to reflect fair value as determined in accordance with
procedures approved by the Directors. The Fund may use a fair valuation model to
value Korean equity securities in order to adjust for events which may occur between
the close of the Korean stock exchanges and the close of the New York Stock
Exchange.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Foreign Currency Translations.</FONT></B> The books and records of the Fund are maintained
in US dollars. Investment securities and other assets and liabilities denominated in a
foreign currency are translated into US dollars at the prevailing exchange rates at
period end. Purchases and sales of investment securities, income and expenses are
translated into US dollars at the prevailing exchange rates on the respective dates of
the transactions.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Net realized and unrealized gains and losses on foreign currency transactions
represent net gains and losses between trade and settlement dates on securities
transactions, the disposition of forward foreign currency exchange contracts and
foreign currencies, and the difference between the amount of net investment income
accrued and the US dollar amount actually received. That portion of both realized
and unrealized gains and losses on investments that results from fluctuations in
foreign currency exchange rates is not separately disclosed but is included with net
realized and unrealized gains and losses on investment securities.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">At December 31, 2004, the exchange rate for Korean Won was US $.00097 to W&nbsp;1.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Taxes.</FONT></B> The Fund's policy is to comply with the requirements of the Internal Revenue
Code, as amended, which are applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Accordingly, the Fund paid no
federal income taxes and no federal income tax provision was required. </FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Under the United States-Korea Income Tax Treaty (the &quot;Treaty&quot;), as presently in
effect, the government of Korea imposes a nonrecoverable withholding tax and
resident tax aggregating 16.5% on dividends and 13.2% on interest earned by the
Fund from Korean issuers. Under the Treaty, there is no Korean withholding tax on
realized capital gains.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Distribution of Income and Gains.</FONT></B> Net investment income of the Fund is declared
and distributed to shareholders annually. Net realized gains from investment
transactions, in excess of available capital loss carryforwards, would be taxable to the
Fund if not distributed, and, therefore, will be distributed to shareholders at least
annually.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The timing and characterization of certain income and capital gains distributions are
determined annually in accordance with federal tax regulations which may differ
from accounting principles generally accepted in the United States of America. These
differences primarily relate to investments in passive foreign investment companies,
foreign denominated securities and certain securities sold at a loss. As a result, net
investment income (loss) and net realized gain (loss) on investment transactions for a
reporting period may differ significantly from distributions during such period.
Accordingly, the Fund may periodically make reclassifications among certain of its
capital accounts without impacting the net asset value of the Fund. </FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The tax character of current distributions will be determined at the end of current
fiscal year.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Dividend Income.</FONT></B> Dividend income is recorded on the ex-dividend date net of
foreign withholding taxes. Korean-based corporations have generally adopted
calendar year-ends, and their interim and final corporate actions are normally
approved, finalized and announced by their boards of directors and shareholders
in&nbsp;the first and third quarters of each calendar year. Generally, estimates of their
dividends are accrued by management on ex-dividend date in the prior December
and/or June period end. These dividend announcements are recorded by the Fund on
such ex-dividend dates. Any subsequent adjustments thereto by Korean corporations
are recorded when announced. Presently, dividend income from Korean equity
investments is earned primarily in the last calendar quarter of each year, and will be
received primarily in the first calendar quarter of each year. Certain other dividends
and related withholding taxes, if applicable, from Korean securities may be recorded
subsequent to the ex-dividend date as soon as the Fund is informed of such dividends
and taxes.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Other.</FONT></B> Investment transactions are accounted for on a trade date plus one basis for
daily net asset value calculations. However, for financial reporting purposes,
investment security transactions are reported on trade date. Interest income is
recorded on the accrual basis. Realized gains and losses from investment transactions
are recorded on an identified cost basis.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">B. Purchases and Sales of Securities</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">During the six months ended December 31, 2004, purchases and sales of investment
securities (excluding short-term investments) aggregated $78,057,460 and
$27,469,846, respectively.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">C. Related Parties</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Management Agreement.</FONT></B> Under the Management Agreement with Deutsche
Investment Management Americas Inc. (&quot;DeIM&quot; or the &quot;Manager&quot;), an indirect,
wholly owned subsidiary of Deutsche Bank AG, the Manager directs the investments
of the Fund in accordance with its investment objectives, policies and restrictions.
The Manager determines the securities, instruments and other contracts relating to
investments to be purchased, sold or entered into by the Fund. In addition to
portfolio management services, the Manager provides certain administrative services
in accordance with the Management Agreement. The management fee payable
monthly under the Agreement through November 30, 2004 was equal to an annual
rate of 1.15% of the first $50,000,000 of the Fund's month-end net assets, 1.10% of
the next $50,000,000 of such net assets, 1% of the next $250,000,000 of such net
assets, 0.95% of the next $400,000,000 of such net assets, 0.90% of the next
$300,000,000 of such net assets, and 0.85% of such net assets in excess of
$1,050,000,000 of the Fund's month-end net assets. Effective December 1, 2004, the
Management Agreement was amended. Under the amended Management
Agreement, the management fee payable is equal to an annualized rate of 0.60% on
the first $250 million of the Fund's month-end net assets, 0.575% on the next $250
million of such net assets, 0.55% on the next $250 million of such net assets,
0.525% on the next $250 million of such net assets, 0.50% of such net assets in
excess of $1&nbsp;billion. The market value of Hankang Restructuring Fund, which is
managed by the Manager, has been excluded from the net assets used to calculate the
management fee. For the six months ended December 31, 2004, the Manager waived
a portion of its fee amounting to $30,362, and the portion charged amounted to
$4,505,443 which was equivalent to an annualized effective rate of 0.88%&nbsp;of the
Fund's average month-end net assets.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Deutsche Investment Trust Management Company Limited (&quot;DeITMC&quot;), also a
wholly owned subsidiary of Deutsche Bank AG, serves as subadvisor to the Fund.
DeITMC renders investment advisory and management services with regard to the
Fund's portfolio. From time to time, DeITMC makes specific investment
recommendations, which then are evaluated by DeIM's portfolio managers in light of
their own expertise and information from other sources in making investment
decisions for the Fund.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Fund paid insurance premiums to an unaffiliated insurance broker in 2002 and
2003. This broker in turn paid a portion of its commissions to an affiliate of the
Manager, which performed certain insurance brokerage services for the broker. The
Manager has agreed to reimburse the Fund in 2005 for the portion of commissions
(plus interest) paid to the affiliate of the Manager attributable to the premiums paid
by the Fund. The amounts for 2002 and 2003 were $324 and $297, respectively.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Service Provider Fees.</FONT></B> Scudder Investments Service Company (&quot;SISC&quot;), an affiliate
of the Manager, is the&nbsp;transfer, dividend-paying and shareholder service agent for the
Fund. Pursuant to a sub-transfer agency agreement between SISC and DST Systems,
Inc. (&quot;DST&quot;), SISC has delegated certain transfer agent and dividend- paying agent
functions to DST. SISC compensates DST out of the shareholder servicing fee it
receives from the Fund. For the six months ended December 31, 2004, the amount
charged to the Fund by SISC aggregated $8,100, of which $5,400 is unpaid.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Scudder Service Corporation (&quot;SSC&quot;), a subsidiary of the Manager, is the shareholder
communications agent of the Fund. For the six months ended December 31, 2004
the amount charged to the Fund by SSC aggregated $7,500, of which $3,750 is
unpaid.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Scudder Fund Accounting Corporation (&quot;SFAC&quot;), also a subsidiary of the Manager,
is responsible for determining the daily net asset value per share and maintaining
the&nbsp;portfolio and general accounting records of the Fund. Pursuant to a
sub-accounting agreement between SFAC and State Street Bank and Trust Company
(&quot;SSB&quot;), SFAC has delegated all accounting functions to SSB. SFAC compensates
SSB out of the accounting fee it receives from the Fund. For the six months ended
December 31, 2004, the amount charged to the Fund by SFAC aggregated
$282,879, of which&nbsp;$267,870 is unpaid.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Directors' Fees and Expenses.</FONT></B> The Fund pays each Director not affiliated with the
Manager retainer fees plus specified amounts for attended board and committee
meetings.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000"><B><FONT SIZE="-1">Scudder Cash Management QP Trust.</FONT></B> Pursuant to an Exemptive Order issued by
the SEC, the Fund may invest in the Scudder Cash Management QP Trust (the
&quot;QP&nbsp;Trust&quot;) and other affiliated funds managed by the Manager. The QP Trust seeks
to provide as high a level of current income as is consistent with the preservation of
capital and the maintenance of liquidity. The QP Trust does not pay the Manager a
management fee for the affiliated funds' investments in the QP Trust.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">D. Foreign Investment and Exchange Controls in Korea</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Foreign Exchange Transaction Act, the Presidential Decree relating to such Act
and the regulations of the Minister of Finance and Economy issued thereunder
impose certain limitations and controls which generally affect foreign investors in
Korea. The Fund has obtained from the Minister of Finance and Economy a license
to invest in Korean securities and to repatriate income received from dividends and
interest earned on, and net realized capital gain from, its investments in Korean
securities or to repatriate from investment principal up to 10% of the net asset value
(taken at current value) of the Fund (except upon termination of the Fund, or for
expenses in excess of Fund income, in which case the foregoing restriction shall not
apply). The Minister of Finance and Economy may, when it deems it to be in the
public interest, modify the Fund's license to invest in Korean securities or, according
to the terms of the license, revoke it in the event of the Fund's noncompliance with
conditions of the license or a material violation of Korean law. The Minister of
Finance and Economy may issue orders when it deems that transactions cannot be
normally concluded due to natural disaster, warfare, uprising, sudden change in
economic conditions, or other incidents similar thereto, or order the temporary
closing of the securities market or take other necessary measures. Under the Foreign
Exchange Transaction Act, the Minister of Finance and Economy has the power, with
prior public notice of scope and duration, to suspend all or a part of foreign exchange
transactions when emergency measures are deemed necessary in case of radical change
in the international or domestic economic situation. The Fund could be adversely
affected by delays in, or the refusal to grant, any required governmental approval for
such transactions.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Various restrictions currently apply with respect to investing in equity securities of
Korean banks and certain designated public corporations and telecommunications
corporations listed on the Korea Stock Exchange. As of December 31, 2004, the
Fund and its affiliates would require the approval of the Financial Supervisory
Commission (the &quot;FSC&quot;) before obtaining aggregate beneficial ownership of more
than 10% of the outstanding voting shares of a national bank such as Kookmin Bank
or 15% of the outstanding voting shares of a regional bank such as Jeonbuk Bank,
and additional FSC approvals would be required before specified higher ownership
percentages could be exceeded. With respect to certain public and
telecommunications corporations, the Fund's holdings in each of LG Home
Shopping, Inc. and SK Telecom Co., Ltd. were subject to a foreign ownership limit
of 49% as of December 31, 2004.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">E. Investing in the Korean Market</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Investing in the Korean market may involve special risks and considerations not
typically associated with investing in the United States of America. These risks
include revaluation of currency, high rates of inflation, Korean taxes, repatriation
restrictions on income and capital, corporate bankruptcy and future adverse political,
social and economic developments. Moreover, securities issued in this market may be
less liquid, subject to government ownership controls, delayed settlements and their
prices more volatile than those of comparable securities in the United States of
America.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">F. Ownership of the Fund</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">At December 31, 2004, The President and Fellows of Harvard College held
approximately 22% of the outstanding shares of the Fund.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">G. Line of Credit</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Fund and several other affiliated funds (the &quot;Participants&quot;) share in a
$1.25&nbsp;billion revolving credit facility administered by J.P. Morgan Chase Bank for
temporary or emergency purposes that otherwise might require the untimely
disposition of securities. The Participants are charged an annual commitment fee
which is allocated, based upon net assets, among each of the Participants. Interest is
calculated at the Federal Funds Rate plus 0.5 percent. The Fund may borrow up to a
maximum of 5 percent of its net assets under the agreement.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">H. Expense Reductions</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">For the six months ended December 31, 2004, the Manager agreed to reimburse the
Fund $4,136, which represents a portion of the fee savings expected to be realized by
the Manager related to the outsourcing by the Manager of certain administrative
services to an unaffiliated service provider.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">I. Transactions in Securities of Affiliated Issuers</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">An affiliated issuer is a company in which the Fund has ownership of at least 5% of
the voting securities. A summary of the Fund's transactions during six months ended
December 31, 2004 with companies which are or were affiliates is as follows:</FONT>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_27">
<TR>
<TD ID="ID_169" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Affiliate</FONT></B>
</P>
</TD>
<TD ID="ID_222" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Common/Preferred
Shares</FONT></B>
</P>
</TD>
<TD ID="ID_221" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Purchases
Cost&nbsp;($)</FONT></B>
</P>
</TD>
<TD ID="ID_220" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Sales
Cost&nbsp;($)</FONT></B>
</P>
</TD>
<TD ID="ID_219" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Realized
Gain/
(Loss)&nbsp;($)</FONT></B>
</P>
</TD>
<TD ID="ID_218" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Dividend
Income ($)*</FONT></B>
</P>
</TD>
<TD ID="ID_217" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_379" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Anycell, Inc.</FONT>
</P>
</TD>
<TD ID="ID_867" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,250,000</FONT>
</P>
</TD>
<TD ID="ID_866" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_865" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_864" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_863" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_862" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_378" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">BYC Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_861" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        39,530</FONT>
</P>
</TD>
<TD ID="ID_860" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_859" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_858" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_857" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        20,580</FONT>
</P>
</TD>
<TD ID="ID_856" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,748,912</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_377" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Jeonbuk Bank</FONT>
</P>
</TD>
<TD ID="ID_855" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">2,787,695</FONT>
</P>
</TD>
<TD ID="ID_854" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_853" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_852" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_851" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        325,482</FONT>
</P>
</TD>
<TD ID="ID_850" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        11,848,781</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_376" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Nam Yang Dairy
Products Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_849" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        44,550</FONT>
</P>
</TD>
<TD ID="ID_848" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_847" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_846" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_845" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        32,161</FONT>
</P>
</TD>
<TD ID="ID_844" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        15,210,036</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_375" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Oriental Fire &amp;
Marine Insurance
Co.</FONT>
</P>
</TD>
<TD ID="ID_843" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        584,860</FONT>
</P>
</TD>
<TD ID="ID_842" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_841" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_840" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_839" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_838" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        9,802,281</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_374" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samsung Climate
Control Co.,&nbsp;Ltd.</FONT>
</P>
</TD>
<TD ID="ID_837" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        827,630</FONT>
</P>
</TD>
<TD ID="ID_836" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_835" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_834" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_833" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        19,887</FONT>
</P>
</TD>
<TD ID="ID_832" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        5,092,739</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_373" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Interflex Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_831" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        667,800</FONT>
</P>
</TD>
<TD ID="ID_830" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        8,039,630</FONT>
</P>
</TD>
<TD ID="ID_829" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_828" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_827" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        66,860</FONT>
</P>
</TD>
<TD ID="ID_826" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        11,192,359</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_372" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Samwoo Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_825" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        754,800</FONT>
</P>
</TD>
<TD ID="ID_824" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        2,092,375</FONT>
</P>
</TD>
<TD ID="ID_823" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_822" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_821" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        60,456</FONT>
</P>
</TD>
<TD ID="ID_820" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        2,307,711</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_371" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">SE Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_819" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        636,950</FONT>
</P>
</TD>
<TD ID="ID_818" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_817" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_816" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_815" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_814" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,932,016</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_370" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Seoul
Semiconductor
Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_813" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,003,900</FONT>
</P>
</TD>
<TD ID="ID_812" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        4,775,077</FONT>
</P>
</TD>
<TD ID="ID_811" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_810" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_809" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        201,021</FONT>
</P>
</TD>
<TD ID="ID_808" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        16,195,064</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_369" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Taegu
Department
Store Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_807" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        1,336,800</FONT>
</P>
</TD>
<TD ID="ID_806" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        4,316,669</FONT>
</P>
</TD>
<TD ID="ID_805" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_804" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_803" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_802" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        9,930,440</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_368" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Telephus Co., Ltd.</FONT>
</P>
</TD>
<TD ID="ID_801" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        2,266,667</FONT>
</P>
</TD>
<TD ID="ID_800" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_799" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_798" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_797" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</P>
</TD>
<TD ID="ID_796" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">        328,439</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_195" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_764" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     </FONT></B>
</P>
</TD>
<TD ID="ID_763" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     19,223,751</FONT></B>
</P>
</TD>
<TD ID="ID_762" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     &#151;</FONT></B>
</P>
</TD>
<TD ID="ID_761" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     &#151;</FONT></B>
</P>
</TD>
<TD ID="ID_760" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     726,447</FONT></B>
</P>
</TD>
<TD ID="ID_759" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     85,588,778</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">*    Net of foreign taxes withheld.</FONT></I>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">J. Share Repurchases</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Fund has a share repurchase plan to effect periodic repurchases of its shares in
the open market from time to time when the Fund's shares trade at a discount to
their net asset value per share. During the six months ended December 31, 2004 and
the year ended June 30, 2004, the Fund purchased 0 and 195,700 shares of common
stock on the open market at a total cost of $0 and $3,258,069, respectively. The
average discount of these purchases, comparing the purchase price to the net asset
value at the time of purchase, was 0% and 16.0%, respectively. These shares are held
in treasury.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">K. Tender Offer Shares Program</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">On January 21, 2004, the Fund's Board of Directors approved a tender offer for the
period January 23, 2004 through February 23, 2004 for up to 10% of its outstanding
shares of common stock for cash, at a price per share equal to 95% of the net asset
value on the business day after the day on which the offer expires. The tender offer
was fully subscribed for the maximum limit of 10% of Fund shares outstanding
aggregating 4,966,409 shares at a total cost of $108,814,019 ($21.91 per share). The
discount of these purchases of tendered shares comparing the purchase price to the
net asset value at the time of purchase was 5%. These shares are also held in treasury.
There will be no further tender offers under this program.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">L. New Tender Offer Shares Program</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">On December 15, 2004, the Fund's Directors approved an offer to repurchase 50%
of the Fund's outstanding shares in exchange for portfolio securities of the Fund and
a program for future repurchase offers.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The initial offer would be to repurchase 50% of the Fund's outstanding shares at a
price of 98% of net asset value on the day after the expiration of the offer.
Shareholders exchanging their shares in the offer would receive a pro rata share of the
Fund's portfolio. Shareholders may sell their share of portfolio securities and receive
the cash proceeds.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Launching of the offer would be conditioned on receipt of a ruling from the Internal
Revenue Service that the Fund would not recognize capital gain as a result of
distributing appreciated property to participating shareholders. The offer would also
conditioned on approvals by the SEC and by regulators in Korea. The Fund currently
anticipates receipt of approvals in the first half of 2005.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Directors also approved making semiannual offers, each to repurchase 10% of
the Fund's shares then outstanding, at a price of 98% of net asset value on the day
after expiration of the offer, in the three calendar years following completion of the
initial offer. As with the initial offer, participating holders would be paid in kind, by
receiving a pro rata share of the Fund's portfolio. Each of these subsequent offers
would be made, subject to regulatory approvals, fiduciary and other applicable
requirements, if the Fund's shares traded on the New York Stock Exchange at an
average weekly discount from net asset value greater than 5% during a 13-week
measuring period ending the last day of the preceding half-year.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">In light of the size of the initial offer and the program for subsequent offers, the
Directors announced that the Fund would not proceed with its previously announced
program of a contingent 10% repurchase offer in the first quarter of 2005 and in the
first quarter of 2006.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">There can be no assurance that the approvals needed for the repurchase offers will be
obtained, or that any action proposed or adopted by the Directors will reduce or
eliminate the discount from net asset value at which the Fund's shares trade.</FONT>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_10">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kornena0.gif" ALT="kor_NEW_SECTIONA0"></TD>
<TD ID="ID_48" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="ria" ID="ria"></A>Report of Independent Registered
Public Accounting Firm</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_146" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_145" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<H2 ALIGN="LEFT"><FONT COLOR="#000000">To the Board of Directors and the Shareholders of
The&nbsp;Korea&nbsp;Fund,&nbsp;Inc.:</FONT></H2>
<P ALIGN="LEFT"><FONT COLOR="#000000">In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all material
respects, the financial position of The Korea Fund, Inc. (the &quot;Fund&quot;) at
December 31, 2004, and the results of its operations, the changes in its net
assets and the financial highlights for each of the periods indicated therein, in
conformity with accounting principles generally accepted in the United States
of America. These financial statements and financial highlights (hereafter
referred to as &quot;financial statements&quot;) are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 2004 by correspondence with the
custodian, provide a reasonable basis for our opinion.</FONT>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_38">
<TR>
<TD ID="ID_63" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">Boston, Massachusetts<BR>
February 24, 2005</FONT>
</P>
</TD>
<TD ID="ID_62" ALIGN="LEFT" VALIGN="TOP">
<P ALIGN="LEFT"><FONT COLOR="#000000">  PricewaterhouseCoopers LLP</FONT>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_9">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kornen90.gif" ALT="kor_NEW_SECTION90"></TD>
<TD ID="ID_47" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="drip" ID="drip"></A>Dividend Reinvestment and Cash
Purchase Plan</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_144" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_143" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">The Plan</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The fund's Dividend Reinvestment and Cash Purchase Plan (the &quot;Plan&quot;) offers&nbsp;you
an automatic way to reinvest your dividends and capital gains distributions in shares
of the fund. The Plan also provides for cash investments in fund shares of $100 to
$3,000 semiannually through Scudder Investments Service Company or its delegate
(the &quot;Transfer Agent&quot;) and UMB Bank, N.A. (the &quot;Plan Agent&quot;). The Transfer Agent
provides record keeping services for participants in the Plan. If you would like a copy
of the Plan, please call the Transfer Agent at 1-800-294-4366.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">Automatic Participation</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Each stockholder of record is automatically a participant in the Plan unless the
stockholder has instructed the Transfer Agent in writing otherwise. Such a notice
must be received by the Transfer Agent not less than 10 days prior to the record date
for a dividend or distribution in order to be effective with respect to that dividend or
distribution. A notice which is not received by that time will be effective only with
respect to subsequent dividends and distributions. </FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Stockholders who do not participate in the Plan will receive all distributions in cash
paid by check in dollars mailed directly to the stockholder by the Transfer Agent, as
dividend paying agent.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">Shares Held by a Nominee</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">If your shares are held in the name of a brokerage firm, bank, or other nominee as
the stockholder of record, please consult your nominee (or any successor nominee) to
determine whether it is participating in the Plan on your behalf. Many nominees are
generally authorized to receive cash dividends unless they are specifically instructed
by a client to reinvest. If you would like your nominee to participate in the Plan on
your behalf, you should give your nominee instructions to that effect as soon as
possible.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">Pricing of Dividends and Distributions</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">If the market price per share on the payment date for the dividend or distribution
(the &quot;Valuation Date&quot;) equals or exceeds net asset value per share on that date, the
fund will issue (i) shares of the fund's common stock that are issued but not
outstanding (&quot;Treasury Stock&quot;) to the extent shares of Treasury Stock are available,
and then (ii) to the extent shares of Treasury Stock are not available, newly issued
shares of the fund's common stock to participants at the greater of the following on
the Valuation Date: (a) net asset value or (b)&nbsp;95% of the market price. The Valuation
Date will be the dividend or distribution payment date or, if that date is not a
New&nbsp;York Stock Exchange trading date, the next preceding trading date. If the net
asset value exceeds the market price of fund shares at such time, the Plan Agent will
use the dividend or distribution (less each participant's pro rata share of brokerage
commissions) to buy fund shares in the open market for the participants' account.
Such purchases will be made on or shortly after the payment date for such dividend
or distribution, and in no event more than 45 days after such date except where
temporary curtailment or suspension of purchase is necessary to comply with federal
securities law. In either case, for Federal income tax purposes, the stockholder receives
a distribution equal to the market value on the Valuation Date of new shares issued.
State and local taxes may also apply. If the fund should declare an income dividend or
net capital gains distribution payable only in cash, the Plan Agent will, as agent for
the participants, buy fund shares in the open market, on the New York Stock
Exchange or elsewhere, for the participants' account on, or shortly after, the payment
date.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">Voluntary Cash Purchases</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Participants in the Plan have the option of making additional cash payments to the
Transfer Agent, semiannually, in any amount from $100 to $3,000, for investment in
the fund's shares. The Plan Agent will use all such monies received from participants
to purchase fund shares in the open market on or about February 15 and August 15.
Any voluntary cash payments received more than 30 days prior to these dates will be
returned by the Transfer Agent, and interest will not be paid on any uninvested cash
payments. To avoid unnecessary cash accumulations, and also to allow ample time for
receipt and processing by the Transfer Agent, it is suggested that participants send in
voluntary cash payments to be received by the Transfer Agent approximately ten days
before February 15, or August 15, as the case may be. A participant may withdraw a
voluntary cash payment by written notice, if the notice is received by the Transfer
Agent not less than 48 hours before such payment is to be invested.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">Participant Plan Accounts</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Transfer Agent maintains all participant accounts in the Plan and furnishes
written confirmation of all transactions in the account, including information needed
by participants for personal and tax records. Shares in the account of each plan
participant will be held by the Transfer Agent in non-certificated form in the name of
the participant, and each participant will be able to vote those shares purchased
pursuant to the Plan at a stockholder meeting or by proxy. </FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">No Service Fee to Reinvest</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">There is no service fee charged to participants for reinvesting dividends or
distributions from net realized capital gains. The Plan Agent's and/or Transfer Agent's
fees for the handling of the reinvestment of dividends and capital gains distributions
will be paid by the fund. There will be no brokerage commissions with respect to
shares issued directly by the fund as a result of dividends or capital gains distributions
payable either in stock or in cash. However, participants will pay a pro rata share of
brokerage commissions incurred with respect to the Plan Agent's open market
purchases in connection with the reinvestment of any dividends or capital gains
distributions.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">Costs for Cash Purchases</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">With respect to purchases of fund shares from voluntary cash payments, each
participant will be charged $0.75 for each such purchase. Each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan Agent's
open market purchases of fund shares in connection with voluntary cash payments
made by the participant.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Brokerage charges for purchasing small amounts of stock for individual accounts
through the Plan are expected to be less than the usual brokerage charges for such
transactions, because the Plan Agent will be purchasing stock for all participants in
blocks and pro-rating the lower commission thus attainable.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">Amendment or Termination</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The fund reserves the right to terminate the Plan. Notice of the termination will be
sent to the participants of the Plan at least 30 days before the record date for a
dividend or distribution. The Plan also may be amended by the fund, but (except
when necessary or appropriate to comply with applicable law, rules or policies of a
regulatory authority) only by giving at least 30 days' written notice to participants in
the Plan.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">A participant may terminate his account under the Plan by written notice to the
Transfer Agent. If the written notice is received 10 days before the record day of any
distribution, it will be effective immediately. If received after that date, it will be
effective as soon as possible after the reinvestment of the dividend or distribution.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">If a participant elects to sell his shares before the Plan is terminated, the Plan Agent
will deduct a $2.50 fee plus brokerage commissions from the sale transaction.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000">Transfer Agent Address and Telephone Number</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">You may obtain more detailed information by requesting a copy of the Plan from the
Transfer Agent. All correspondence (including notifications) should be directed to:
The Korea Fund Dividend Reinvestment and Cash Purchase Plan, c/o Scudder
Investments Service Company, P.O. Box 219066, Kansas City, MO 64121-9066,
1-800-294-4366. </FONT>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_8">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kornen80.gif" ALT="kor_NEW_SECTION80"></TD>
<TD ID="ID_46" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="smr" ID="smr"></A>Stockholder Meeting Results</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_142" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="CENTER"><B><FONT COLOR="#000000">The Korea Fund, Inc.</FONT></B>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">The Annual Meeting of Stockholders (the &quot;Meeting&quot;) of The Korea Fund, Inc.
(the &quot;fund&quot;), was held on October 6, 2004, at the offices of Deutsche
Investment Management Americas Inc. (part of Deutsche Asset Management),
345 Park Avenue, New York, NY 10154. At the Meeting, the two candidates
nominated for election as Directors by the City of London Investment Group
PLC, Julian Reid and Chris Russell, were elected. In addition, stockholders
rejected a stockholder proposal to terminate the Fund's investment
management agreement with Deutsche Investment Management Americas
Inc. The resulting votes are presented below.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">1.        To elect two Directors of the fund to hold office for a term of three years,
or until their respective successors shall have been duly elected and
qualified:</FONT>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_40">
<TR>
<TD ID="ID_262" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_1251" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Number of Votes:</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_216" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Directors</FONT></B>
</P>
</TD>
<TD ID="ID_215" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">For</FONT></B>
</P>
</TD>
<TD ID="ID_214" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Withheld</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1249" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Julian Reid</FONT>
</P>
</TD>
<TD ID="ID_484" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">22,078,233</FONT>
</P>
</TD>
<TD ID="ID_483" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">112,480</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1248" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Chris Russell</FONT>
</P>
</TD>
<TD ID="ID_482" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">22,077,738</FONT>
</P>
</TD>
<TD ID="ID_481" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">112,975</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1247" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Susan Kaufman Purcell</FONT>
</P>
</TD>
<TD ID="ID_480" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7,407,143</FONT>
</P>
</TD>
<TD ID="ID_479" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">992,612</FONT>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1246" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Vincent J. Esposito</FONT>
</P>
</TD>
<TD ID="ID_478" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">7,373,248</FONT>
</P>
</TD>
<TD ID="ID_477" ALIGN="RIGHT" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT SIZE="-2" COLOR="#000000">1,026,527</FONT>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><FONT COLOR="#000000">2.        To terminate immediately the fund's investment management agreement
with Deutsche Investment Management Americas Inc.:</FONT>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_39">
<TR>
<TD ID="ID_261" ALIGN="LEFT" VALIGN="BOTTOM">
<P ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD ID="ID_1250" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Number of Votes:</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_213" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">For</FONT></B>
</P>
</TD>
<TD ID="ID_212" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Against</FONT></B>
</P>
</TD>
<TD ID="ID_211" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Abstain</FONT></B>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_1245" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">18,442,573</FONT>
</P>
</TD>
<TD ID="ID_1244" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">10,355,253</FONT>
</P>
</TD>
<TD ID="ID_1243" ALIGN="CENTER" VALIGN="BOTTOM">
<P ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">1,792,639</FONT>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_7">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kornen70.gif" ALT="kor_NEW_SECTION70"></TD>
<TD ID="ID_45" ALIGN="LEFT" VALIGN="BOTTOM">
<H1 ALIGN="LEFT"><FONT COLOR="#000000"><A NAME="ps" ID="ps"></A>Privacy Statement</FONT></H1>
</TD>
</TR>

<TR>
<TD ID="ID_141" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ID="ID_140" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<P ALIGN="LEFT"><FONT COLOR="#000000">This privacy statement is issued by Deutsche Investment Management Americas Inc.,
Deutsche Asset Management, Inc., Scudder Distributors, Inc., Scudder Investor
Services, Inc., Scudder Trust Company and the Scudder Funds, including The Brazil
Fund, Inc. and The Korea Fund, Inc.</FONT>
</P>
<P ALIGN="LEFT"><B><FONT COLOR="#000000"><FONT SIZE="-1">We never sell customer lists or individual client information. We consider
privacy fundamental to our client relationships and adhere to the policies
and practices described below to protect current and former clients'
information.</FONT> </FONT></B><FONT COLOR="#000000">Internal policies are in place to protect confidentiality, while allowing
client needs&nbsp;to&nbsp;be served. Only individuals who need to do so in carrying out their
job responsibilities may access client information. We maintain physical, electronic
and procedural safeguards that comply with federal and state standards to protect
confidentiality. These safeguards extend to all forms of interaction with us, including
the Internet.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">In the normal course of business, clients give us nonpublic personal information on
applications and other forms, on our websites, and through transactions with us or
our affiliates. Examples of the nonpublic personal information collected are name,
address, Social Security number and transaction and balance information. To be able
to serve our clients, certain of this client information is shared with affiliated and
nonaffiliated third party service providers such as transfer agents, custodians, and
broker-dealers to assist us in processing transactions and servicing your account with
us. In addition, we may disclose all of the information we collect to companies that
perform marketing services on our behalf or to other financial institutions with
which we have joint marketing agreements. The organizations described above that
receive client information may only use it for the purpose designated by the
companies listed above.</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">We may also disclose nonpublic personal information about you to other parties as
required or permitted by law. For example, we are required or we may provide
information to government entities or regulatory bodies in response to requests for
information or subpoenas, to private litigants in certain circumstances, to law
enforcement authorities, or any time we believe it necessary to protect the firm. </FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Questions on this policy may be sent to: </FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">Scudder Investments<BR>
Attention: Correspondence &#151; Chicago<BR>
P.O. Box 219415<BR>
Kansas City, MO 64121-9415</FONT>
</P>
<P ALIGN="LEFT"><FONT COLOR="#000000">September 2004</FONT>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 ID="ID_6">
<TR>
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<PRE>

ITEM 2.         CODE OF ETHICS.

                Not applicable.

ITEM 3.         AUDIT COMMITTEE FINANCIAL EXPERT.

                Not applicable.

ITEM 4.         PRINCIPAL ACCOUNTANT FEES AND SERVICES.

                Not applicable.

ITEM 5.         AUDIT COMMITTEE OF LISTED REGISTRANTS

                Not Applicable

ITEM 6.         SCHEDULE OF INVESTMENTS

                Not Applicable

ITEM 7.         DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
                CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

                Not applicable.

ITEM 8.         PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
                INVESTMENT COMPANY AND AFFILIATED PURCHASERS

- --------------------------------------------------------------------------------
                                       (a)                  (b)
                                       Total Number of      Average Price Paid
Period                                 Shares Purchased     per Share


- --------------------------------------------------------------------------------

July 1 through July 31, 2004                  n/a                  n/a
August 1 through August 31, 2004              n/a                  n/a
September 1 through September 30, 2004        n/a                  n/a
October 1 through October 31, 2004            n/a                  n/a
November 1 through November 30, 2004          n/a                  n/a
December 1 through December 31, 2004          n/a                  n/a

- --------------------------------------------------------------------------------
Total                                         n/a                  n/a
- --------------------------------------------------------------------------------


- --------------------------------------------------------------------------------

                                        Total Number          Maximum Number of
                                        of Shares             Shares that
                                        Purchased as          May Yet Be
Period                                  Part of Publicly      Purchased
                                        Announced             Under the
                                        Plans or Programs     Plans or Programs
- --------------------------------------------------------------------------------

July 1 through July 31, 2004                    n/a               n/a
August 1 through August 31, 2004                n/a               n/a
September 1 through September 30, 2004          n/a               n/a
October 1 through October 31, 2004              n/a               n/a
November 1 through November 30, 2004            n/a               n/a
December 1 through December 31, 2004            n/a               n/a

- --------------------------------------------------------------------------------
Total                                           n/a               n/a
- --------------------------------------------------------------------------------

ITEM 9.         SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Committee on Independent Trustees/Directors selects and nominates
Independent Trustees/Directors. Fund shareholders may also submit nominees that
will be considered by the committee when a Board vacancy occurs. Submissions
should be mailed to the attention of the Secretary of the Fund at 345 Park
Avenue New York, NY 10154

ITEM 10.        CONTROLS AND PROCEDURES.

(a) The Chief Executive and Financial Officers concluded that the Registrant's
Disclosure Controls and Procedures are effective based on the evaluation of the
Disclosure Controls and Procedures as of a date within 90 days of the filing
date of this report.

(b) There have been no changes in the registrant's internal control over
financial reporting that occurred during the registrant's last half-year (the
registrant's second fiscal half-year in the case of the annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal controls over financial reporting.

ITEM 11.        EXHIBITS.

(a)(1)   Certification  pursuant to Rule 30a-2(a) under the  Investment  Company
         Act of 1940 (17 CFR  270.30a-2(a))  is filed  and  attached  hereto  as
         Exhibit 99.CERT.

(b)      Certification  pursuant to Rule 30a-2(b) under the  Investment  Company
         Act of 1940 (17 CFR  270.30a-2(b))  is furnished and attached hereto as
         Exhibit 99.906CERT.


<PAGE>

Form N-CSR Item F

                                   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


By:                                 /s/Julian Sluyters
                                    ----------------------------
                                    Julian Sluyters
                                    Chief Executive Officer

Date:                               February 28, 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

By:                                 /s/Julian Sluyters
                                    ----------------------------
                                    Julian Sluyters
                                    Chief Executive Officer

Date:                               February 28, 2005



By:                                 /s/Paul Schubert
                                    ----------------------------
                                    Paul Schubert
                                    Chief Financial Officer

Date:                               February 28, 2005

</PRE>


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`
end
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>9
<FILENAME>kornen40.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornen40.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>10
<FILENAME>kornen50.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornen50.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>11
<FILENAME>kornen60.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornen60.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>12
<FILENAME>kornen70.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornen70.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>13
<FILENAME>kornen80.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornen80.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>14
<FILENAME>kornen90.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornen90.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>15
<FILENAME>kornena0.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornena0.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>16
<FILENAME>kornenb0.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornenb0.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>17
<FILENAME>kornenc0.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornenc0.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>18
<FILENAME>kornend0.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornend0.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>19
<FILENAME>kornene0.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornene0.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>20
<FILENAME>kornenf0.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornenf0.gif
M1TE&.#EA%0`7`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0#,`V0``_P``
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A,#VV="GQX\J4)A<V+-F1)T^$/W6JO"F2:,RC2`\&!``[
`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>21
<FILENAME>kornoge0.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornoge0.gif
M1TE&.#EA5@$X`.<!`````/____?W]^_O[]_?W[^_OW]_?T!`0```_P``````
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`
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>22
<FILENAME>kornoge1.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 kornoge1.gif
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>25
<FILENAME>cert.txt
<DESCRIPTION>CERTIFICATION
<TEXT>

                                             Deutsche Asset Management [LOGO]
                                             A Member of the Deutsche Bank Group



Chief Executive Officer
Form N-CSR Certification under Sarbanes Oxley Act






I, Julian Sluyters, certify that:

1.            I have reviewed this report, filed on behalf of The Korea Fund,
              Inc., on Form N-CSR;

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 financial statements, and other
              financial information included in this report, fairly present in
              all material respects the financial condition, results of
              operations, changes in net assets, and cash flows (if the
              financial statements are required to include a statement of cash
              flows) of the registrant as of, and for, the periods presented in
              this report;

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

<PAGE>

                           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 half-year (the registrant's second
                           fiscal half-year in the case of an annual report)
                           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.

February 28, 2005                                /s/Julian Sluyters
                                                 Julian Sluyters
                                                 Chief Executive Officer
                                                 The Korea Fund, Inc.

<PAGE>

                                             Deutsche Asset Management [LOGO]
                                             A Member of the Deutsche Bank Group



Chief Financial Officer
Form N-CSR Certification under Sarbanes Oxley Act






I, Paul Schubert, certify that:

1.            I have reviewed this report, filed on behalf of The Korea Fund,
              Inc., on Form N-CSR;

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 financial statements, and other
              financial information included in this report, fairly present in
              all material respects the financial condition, results of
              operations, changes in net assets, and cash flows (if the
              financial statements are required to include a statement of cash
              flows) of the registrant as of, and for, the periods presented in
              this report;

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

<PAGE>

                           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 half-year (the registrant's second
                           fiscal half-year in the case of an annual report)
                           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.


February 28, 2005                                /s/Paul Schubert
                                                 Paul Schubert
                                                 Chief Financial Officer
                                                 The Korea Fund, Inc.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906
<SEQUENCE>26
<FILENAME>cert906.txt
<DESCRIPTION>906 CERTIFICATION
<TEXT>

                                             Deutsche Asset Management [LOGO]
                                             A Member of the Deutsche Bank Group



Chief Executive Officer
Section 906 Certification under Sarbanes Oxley Act






I, Julian Sluyters, certify that:

1.   I have reviewed this report, filed on behalf of The Korea Fund, Inc., on
     Form N-CSR;

2.   Based on my knowledge and pursuant to 18 U.S.C. ss. 1350, the periodic
     report on Form N-CSR (the "Report") fully complies with the requirements of
     ss. 13 (a) or ss. 15 (d), as applicable, of the Securities Exchange Act of
     1934 and that the information contained in the Report fairly presents, in
     all material respects, the financial condition and results of operations of
     the Company.




February 28, 2005                                /s/Julian Sluyters
                                                 Julian Sluyters
                                                 Chief Executive Officer
                                                 The Korea Fund, Inc.


<PAGE>

                                             Deutsche Asset Management [LOGO]
                                             A Member of the Deutsche Bank Group



Chief Financial Officer
Section 906 Certification under Sarbanes Oxley Act






I, Paul Schubert, certify that:

1.   I have reviewed this report, filed on behalf of The Korea Fund, Inc., on
     Form N-CSR;

2.   Based on my knowledge and pursuant to 18 U.S.C. ss. 1350, the periodic
     report on Form N-CSR (the "Report") fully complies with the requirements of
     ss. 13 (a) or ss. 15 (d), as applicable, of the Securities Exchange Act of
     1934 and that the information contained in the Report fairly presents, in
     all material respects, the financial condition and results of operations of
     the Company.





February 28, 2005                                /s/Paul Schubert
                                                 Paul Schubert
                                                 Chief Financial Officer
                                                 The Korea Fund, Inc.
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
