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<SEC-DOCUMENT>0000088053-07-000367.txt : 20070308
<SEC-HEADER>0000088053-07-000367.hdr.sgml : 20070308
<ACCEPTANCE-DATETIME>20070308155153
ACCESSION NUMBER:		0000088053-07-000367
CONFORMED SUBMISSION TYPE:	N-CSRS
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20061231
FILED AS OF DATE:		20070308
DATE AS OF CHANGE:		20070308
EFFECTIVENESS DATE:		20070308

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:		07680927

	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>sr123106kor.htm
<DESCRIPTION>SEMIANNUAL REPORT
<TEXT>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>UNITED STATES</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>WASHINGTON, D. C. 20549</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>FORM N-CSRS</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>Investment Company Act file number  811-4058</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><u><font size=2>The Korea Fund, Inc.</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2> (Exact Name of Registrant as Specified in Charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>345 Park Avenue</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><font size=2>New York, NY  10154</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font color="#4F4F4F"><font size=2>(Address of principal executive offices) &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; (Zip code)</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Registrant&#146;s Telephone Number, including Area Code: </font><u><font size=2>(212) 454-7190</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Paul Schubert</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>345 Park Avenue</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><font size=2>New York, NY 10154</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Name and Address of Agent for Service)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="193" style='border-collapse:collapse'>
    <tr >
        <td width="144" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date of fiscal year end:</font></p> </td>
        <td width="49" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>06/30</font></u></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="211" style='border-collapse:collapse; '>
    <tr >
        <td width="144" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date of reporting period:</font></p> </td>
        <td width="67" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>12/31/06</font></u></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>ITEM 1.</font></B><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><B><font SIZE=2>REPORT TO STOCKHOLDERS</font></B></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


</div>






<P CLASS="CLASS_182" ALIGN="JUSTIFY">
</P>
<TABLE WIDTH="500" BGCOLOR="#CCCCCC" CELLPADDING="0" CELLSPACING="0">
<TR>
<TD ALIGN="LEFT"  VALIGN="TOP" COLSPAN="3" BGCOLOR="#CCCCCC">
<P CLASS="CLASS_184" ALIGN="LEFT"><FONT SIZE="+3">The Korea Fund, Inc.</FONT>
</P>
<H1 CLASS="CLASS_12" ALIGN="LEFT">Semiannual Report to Stockholders</H1>
<H1 CLASS="CLASS_12" ALIGN="LEFT">December 31, 2006</H1>
<P CLASS="CLASS_12" ALIGN="LEFT">A closed-end investment company seeking long-term&nbsp;capital appreciation
through investment in&nbsp;Korean securities.
</P>
</TD>
</TR>


</TABLE>
<BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT">The Korea Fund, Inc.</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<H2 CLASS="CLASS_4" ALIGN="LEFT"><FONT COLOR="#000000">Investment Objective and Policies</FONT></H2>
<P CLASS="CLASS_181" ALIGN="LEFT"><FONT COLOR="#000000">        long-term capital appreciation through investment in Korean securities</FONT>
</P>
<H2 CLASS="CLASS_163" ALIGN="LEFT"><FONT COLOR="#000000">Investment Characteristics</FONT></H2>
<P CLASS="CLASS_181" ALIGN="LEFT"><FONT COLOR="#000000">        a closed-end investment company investing in a broad spectrum of Korean
securities</FONT>
</P>
<P CLASS="CLASS_181" ALIGN="LEFT"><FONT COLOR="#000000">        first United States investment company authorized to invest in Korean securities</FONT>
</P>
<P CLASS="CLASS_181" ALIGN="LEFT"><FONT COLOR="#000000">        a vehicle for international diversification through participation in the stock market</FONT>
</P>
<P CLASS="CLASS_180" ALIGN="LEFT"><FONT COLOR="#000000">        a vehicle providing investments in some less liquid Korean opportunities</FONT>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_8">
<TR CLASS="CLASS_17">
<TD CLASS="CLASS_173" ALIGN="LEFT" VALIGN="TOP">
<H3 CLASS="CLASS_12" ALIGN="LEFT">Executive Offices</H3>
</TD>
<TD CLASS="CLASS_174" ALIGN="LEFT" VALIGN="TOP">
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">The Korea Fund, Inc.<BR>
345 Park Avenue<BR>
New York, NY 10154</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_17">
<TD CLASS="CLASS_173" ALIGN="LEFT" VALIGN="TOP">
<H3 CLASS="CLASS_12" ALIGN="LEFT">Automated <BR>
Information Line</H3>
</TD>
<TD CLASS="CLASS_174" ALIGN="LEFT" VALIGN="TOP">
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">DWS Scudder Closed-End Fund Info Line<BR>
1-800-349-4281</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_17">
<TD CLASS="CLASS_173" ALIGN="LEFT" VALIGN="TOP">
<H3 CLASS="CLASS_12" ALIGN="LEFT">Web Site</H3>
</TD>
<TD CLASS="CLASS_174" ALIGN="LEFT" VALIGN="TOP">
<H3 CLASS="CLASS_12" ALIGN="LEFT">www.TheKoreaFund.com</H3>
<P CLASS="CLASS_9" ALIGN="LEFT"><FONT COLOR="#000000">Obtain monthly fact sheets, financial reports,
press releases and webcasts when available.</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_17">
<TD CLASS="CLASS_173" ALIGN="LEFT" VALIGN="TOP">
<H3 CLASS="CLASS_12" ALIGN="LEFT">Transfer Agent and Registrar</H3>
</TD>
<TD CLASS="CLASS_174" ALIGN="LEFT" VALIGN="TOP">
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">DWS Scudder Investments Service
Company<BR>
P.O. Box 219066<BR>
Kansas City, MO 64121-9066</FONT>
</P>
<P CLASS="CLASS_102" ALIGN="LEFT"><FONT COLOR="#000000">For account information: 1-800-294-4366</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_17">
<TD CLASS="CLASS_173" ALIGN="LEFT" VALIGN="TOP">
<H3 CLASS="CLASS_12" ALIGN="LEFT">Dividend Reinvestment <BR>
Plan Agent</H3>
</TD>
<TD CLASS="CLASS_174" ALIGN="LEFT" VALIGN="TOP">
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">UMB Bank, N.A.</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_17">
<TD CLASS="CLASS_173" ALIGN="LEFT" VALIGN="TOP">
<H3 CLASS="CLASS_12" ALIGN="LEFT">Legal Counsel</H3>
</TD>
<TD CLASS="CLASS_174" ALIGN="LEFT" VALIGN="TOP">
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">Debevoise &amp; Plimpton LLP</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_17">
<TD CLASS="CLASS_173" ALIGN="LEFT" VALIGN="TOP">
<H3 CLASS="CLASS_12" ALIGN="LEFT">Custodian</H3>
</TD>
<TD CLASS="CLASS_174" ALIGN="LEFT" VALIGN="TOP">
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">Brown Brothers Harriman &amp; Co.</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_17">
<TD CLASS="CLASS_173" ALIGN="LEFT" VALIGN="TOP">
<H3 CLASS="CLASS_12" ALIGN="LEFT">Subcustodian </H3>
</TD>
<TD CLASS="CLASS_174" ALIGN="LEFT" VALIGN="TOP">
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">Citibank Korea Inc.</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_17">
<TD CLASS="CLASS_173" ALIGN="LEFT" VALIGN="TOP">
<H3 CLASS="CLASS_12" ALIGN="LEFT">Independent Registered
Public&nbsp;Accounting Firm</H3>
</TD>
<TD CLASS="CLASS_174" ALIGN="LEFT" VALIGN="TOP">
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">PricewaterhouseCoopers LLP</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_17">
<TD CLASS="CLASS_172" ALIGN="LEFT" VALIGN="TOP" COLSPAN="2">
<H3 CLASS="CLASS_12" ALIGN="LEFT">New York Stock Exchange Symbol &#151; KF</H3>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic">
</TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT">Contents</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_8">
<TR CLASS="CLASS_14">
<TD CLASS="CLASS_158" ALIGN="LEFT" VALIGN="TOP" COLSPAN="3">
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#letter">click here</A></FONT><FONT COLOR="#000000">    Portfolio Management Review</FONT>
</P>
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#other">click here</A></FONT><FONT COLOR="#000000">     Other Information</FONT>
</P>
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#invsum">click here</A></FONT><FONT COLOR="#000000">   Investment Summary</FONT>
</P>
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#portsum">click here</A></FONT><FONT COLOR="#000000">  Portfolio Summary</FONT>
</P>
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#portfolio">click here</A></FONT><FONT COLOR="#000000">        Investment Portfolio</FONT>
</P>
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#fins">click here</A></FONT><FONT COLOR="#000000">     Financial Statements</FONT>
</P>
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#high">click here</A></FONT><FONT COLOR="#000000">     Financial Highlights</FONT>
</P>
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#notes">click here</A></FONT><FONT COLOR="#000000">    Notes to Financial Statements</FONT>
</P>
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#smr">click here</A></FONT><FONT COLOR="#000000">      Stockholder Meeting Results</FONT>
</P>
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#ima">click here</A></FONT><FONT COLOR="#000000">      Investment Management Agreement Approval</FONT>
</P>
<P CLASS="CLASS_145" ALIGN="LEFT"><FONT COLOR="#3300d9">        <A HREF="#drip">click here</A></FONT><FONT COLOR="#000000">     Dividend Reinvestment and Cash Purchase Plan</FONT>
</P>
<P CLASS="CLASS_145" 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 CLASS="CLASS_15">
<TR CLASS="CLASS_16">
<TD CLASS="CLASS_159" ALIGN="LEFT" VALIGN="TOP">
<P CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2">Investments in funds involve risks. The fund focuses its investments in Korean issuers,
thereby increasing its vulnerability to developments in Korea and its geographic regions.
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 CLASS="CLASS_4" 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 CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT&nbsp;A&nbsp;DEPOSIT
NOT&nbsp;INSURED BY ANY FEDERAL GOVERNMENT AGENCY</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="letter" ID="letter"></A>Portfolio Management Review</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT SIZE="-1" COLOR="#000000">In the following interview, Lead Portfolio Manager Terrence Gray discusses the market
environment, fund performance and the strategy for managing Korea Fund, Inc.
during the six-month period ended December 31, 2006. </FONT>
</P>
<P CLASS="CLASS_143" ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">Q:&nbsp;&nbsp;How did South Korea's stock market perform during the
semiannual reporting period?</FONT></B>
</P>
<P CLASS="CLASS_142" ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">A:</FONT></B><FONT COLOR="#000000">&nbsp;&nbsp;</FONT><FONT>Korean equities performed very well during the second half
of the year, as measured by the 13.13% US dollar return of the
fund's benchmark, the KOSPI Index.<SUP>1</SUP></FONT><FONT 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 such.)While the semiannual period
began on a down note with a sell-off in the early weeks of July,
stocks reached their second half low by July 19 and
subsequently embarked on a robust rally that carried through
year-end. The index closed the year at 1434.46, just shy of its
December 20 all-time high of 1442.28. </FONT>
</P>
<P><FONT SIZE="-2"><SUP>1</SUP><I>     KOSPI is an unmanaged, capitalization-weighted index of all common shares on the
StockMarket Division of the Korea Exchange (formerly the &quot;Korea Stock Exchange&quot;).</I></FONT></P>
<P><FONT SIZE="-2"><SUP>2</SUP><I>   Underperformance versus peers is measurered by the Morgan Stanley Capital International
(MSCI) Emerging Markets Index, an unmanaged capitalization-weighted index of companies in
a&nbsp;universe of 26 emerging markets. </I></FONT></P>
<P><I><FONT SIZE="-2">  The indices are calculated using closing local market prices and translated into US dollars using
the London close foreign exchange rates. Index returns assume reinvested dividends and, unlike
fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an
index.</FONT></I></P>
<P CLASS="CLASS_142" ALIGN="LEFT"><FONT COLOR="#000000">Korea's stock market was boosted by the broad-based rally in
global stock prices. Still, Korea underperformed its
emerging-market peers as an environment of investor euphoria
led to outperformance for smaller, higher-risk markets.<SUP>2</SUP> Also
weighing on relative performance was the continued strength in
Korea's currency, the <I>won</I>. Only 930.00&nbsp;<I>won</I> were required to
purchase one US dollar at the close of 2006, compared to
970.69 on June 30 and 1020.72 on December 31, 2005. This
uptrend helped US&nbsp;dollar investors by increasing the value of
their holdings: the KOSPI's US dollar return for the second half
was above its local currency return of 10.86%. However, the
rising won hurt shares of export-related stocks by making their
goods and services more expensive for overseas buyers &#151; an
important development for an export-led economy such as
South Korea's. The rising <I>won </I>also has impeded the country's
economic recovery, leading to stock market underperformance
as investors looked elsewhere for higher-growth opportunities. </FONT>
</P>
<P CLASS="CLASS_143" ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">Q:&nbsp;&nbsp;How did the fund perform?</FONT></B>
</P>
<P CLASS="CLASS_142" 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, 2006, the net&nbsp;asset
value (NAV) total return of the Korea Fund was 13.77%. Its
share price &#151; quoted on the NYSE &#151; returned 14.27% to
close at $34.17 per share, representing a discount of 6.13% to
NAV. (Past performance is no guarantee of future results. Please
see pages <A HREF="#invsum">14</A> through <A HREF="#invsumend">15</A> for more complete performance
information.)</FONT>
</P>
<P CLASS="CLASS_143" ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">Q:&nbsp;&nbsp;What factors helped and hurt performance?</FONT></B>
</P>
<P CLASS="CLASS_142" ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">A:</FONT></B><FONT COLOR="#000000">&nbsp;&nbsp;</FONT><FONT COLOR="#000000">A leading contributor to performance was Hankook Tire
Co. Ltd., which recovered from its poor showing in the first half
of the year. The rising won had weighed heavily on Hankook's
share price, as it had for many stocks of Korean manufacturing
companies. However, falling prices for both oil and rubber have
since caused investors to become more optimistic on the
outlook for the company's profit margins. We held on to the
fund's position in Hankook, believing that the company's rising
global market share and rapidly improving worldwide brand
recognition would ultimately take precedence over investors'
short-term worries about the <I>won</I>. The stock rose 47% in the
second half of the year, boosting fund performance. </FONT>
</P>
<P CLASS="CLASS_142" ALIGN="LEFT"><FONT COLOR="#000000">Also performing well for the fund was its longstanding holding
in Samsung Fire &amp; Marine Co., Ltd. The stock rose 27% in the
semiannual period on the strength of investors' growing
recognition that changing insurance regulations will enable the
company to leverage its brand within fast-growing areas such as
health insurance. Also performing well was Korea Express Co.,
Ltd., a logistics company that has acquired substantial real estate
holdings throughout its 60-year history. Korean real estate prices
have risen rapidly in the past two to three years, and this has
been reflected in the company's stock price. </FONT>
</P>
<P CLASS="CLASS_142" ALIGN="LEFT"><FONT COLOR="#000000">In the small-cap area, we generated strong performance from a
holding in Jeonbuk Bank, a well-managed regional player whose
shares fell to undervalued levels during the consumer credit
slowdown. One of the reasons we find Jeonbuk attractive is that
its narrow geographic focus has enabled the company to develop
strong relationships with its customers. The stock came back
into favor with investors in the second half of the year,
propelling its shares to a gain of 32%.</FONT>
</P>
<P CLASS="CLASS_142" ALIGN="LEFT"><FONT COLOR="#000000">On the negative side, a notable laggard was Hyundai Motor Co.
Ltd., another stock we cited in the fund's June annual report as
being hurt by the strength of the <I>won</I>. Unlike Hankook,
Hyundai shares were unable to gain traction in the second half
due to production stoppages that resulted from labor disputes.
We believe investors remain too focused on short-term issues
and are therefore failing to place an appropriate value on the
company's growing global brand equity. Also weighing on fund
performance was Seoul Semiconductor Co., Ltd., whose shares
have come under pressure due to fears of rising competition.
SFA Engineering Corp., also a technology stock,
underperformed on concerns about slowing capital spending by
its key customers. We believe the market's worries are
exaggerated given the company's well-diversified portfolio of
business.</FONT>
</P>
<P CLASS="CLASS_142" 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 CLASS="CLASS_144" ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">A:</FONT></B><FONT COLOR="#000000">&nbsp;&nbsp;</FONT><FONT COLOR="#000000">We believe valuations in the Korean market are extremely
attractive, signaling opportunity if the economic picture changes
for the better. Korea closed the year with a price-to-earnings
(p/e ratio) of approximately nine times forward earnings, a steep
discount to the 12.5 p/e of the emerging-market universe, as
measured by the MSCI Emerging Markets Index, and to the
developed markets, as gauged by the 15.2 p/e of the MSCI
World Index.<SUP>3</SUP> While valuations alone are not enough to
improve Korea's relative performance, we think the catalysts are
in place for value to be recognized. First, we believe earnings are
set to accelerate, particularly if the <I>won</I> gives back some of its
gains of the past year. Second, we see the credit market
improving to a more normalized state as the economy finishes
working off the excesses caused by the consumer credit bubble
earlier this decade. We believe this will lead to a more rational
lending environment, a positive development for the domestic
economy. </FONT>
</P><FONT SIZE="-2"><SUP>3</SUP><I>     The Morgan Stanley Capital International (MSCI) World Index is an unmanaged, capitalization
weighted measure of global stock markets, including the United States, Canada, Europe,
Australia and the Far East. </I></FONT><I><FONT SIZE="-2">      The Morgan Stanley Capital International (MSCI) Emerging Markets Index is an unmanaged
capitalization-weighted index of companies in a universe of 26 emerging markets. </FONT></I><I><FONT SIZE="-2"> These indices are calculated using closing local market prices and translate into US dollars using
the London close foreign exchange rates. Index returns assume reinvested all distributions and,
unlike fund returns, do not reflect any fees or expenses. It is not possible to invest directly into
an&nbsp;index.</FONT></I><P>

<P CLASS="CLASS_142" ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">Q:&nbsp;&nbsp;Do you have any final thoughts for investors?</FONT></B>
</P>
<P CLASS="CLASS_144" ALIGN="LEFT"><B><FONT SIZE="-1" COLOR="#3300d9">A:</FONT></B><FONT COLOR="#000000">&nbsp;&nbsp;</FONT><FONT COLOR="#000000">As always, investors need to be mindful of external issues.
North Korea's saber-rattling remains an unquantifiable risk, but
we believe the country will be kept in line by its dependence on
economic assistance from the South. A global economic
slowdown would also pose a risk given the increasingly global
reach of Korean companies. We remain positive on the outlook
for growth, however, and we believe Korea will be well-served by
its increasingly diverse export base: the United States is now the
country's third-largest trading partner, behind China and
Europe. Overall, we retain our favorable long-term outlook for
Korean equities on the belief that the combination of attractive
values and improving growth should support the market's
performance.</FONT>
<P><I><FONT SIZE="-2" COLOR="#000000">The views expressed in this report reflect those of the portfolio manager 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. Past performance is no guarantee of future results.</FONT></I></P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="other" ID="other"></A>Other Information</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<H2 CLASS="CLASS_189" ALIGN="LEFT"><FONT COLOR="#000000">Investment Manager</FONT></H2>
<P CLASS="CLASS_4" ALIGN="LEFT"><FONT COLOR="#000000">Deutsche Investment Management Americas Inc. (&quot;DIMA&quot;), with
headquarters at 345 Park Avenue, New York, NY, is the investment manager
for the fund. DIMA and its predecessors have more than 80 years of
experience managing open-end and closed-end funds. DIMA provides a full
range of investment advisory services to institutional and retail clients. DIMA
is also responsible for selecting brokers and dealers and for negotiating
brokerage commissions and dealer charges.</FONT>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><FONT COLOR="#000000">Deutsche Asset Management is the marketing name in the US for the
asset&nbsp;management activities of Deutsche Bank AG, Deutsche Bank Trust
Company Americas, Deutsche Asset Management, Inc., Deutsche Investment
Management Americas Inc. and DWS Trust Company.</FONT>
</P>
<P CLASS="CLASS_4" 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 CLASS="CLASS_4" ALIGN="LEFT"><FONT COLOR="#000000">DIMA 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 CLASS="CLASS_4" ALIGN="LEFT"><FONT COLOR="#000000">Deutsche Asset Management also manages the assets of other closed-end
investment companies which invest primarily in foreign securities: DWS
Global High Income Fund, Inc., DWS Global Commodities Stock Fund,
Inc., The European Equity 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 that invest in domestic and
international markets.</FONT>
</P>
<H2 CLASS="CLASS_185" ALIGN="LEFT"><FONT COLOR="#000000">Subsequent Event</FONT></H2>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">On January 29, 2007, the Board of Directors approved (i) a new investment
management agreement between the fund and RCM Capital Management
LLC and (ii) a new subadvisory agreement between RCM and RCM Asia
Pacific Limited. A special shareholder meeting will be held on April 11, 2007
to consider for approval the new investment advisory agreement and
subadvisory agreement. </FONT>
</P>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">Additionally, the Board approved (i) an interim investment management
agreement between the Fund and RCM and (ii) an interim subadvisory
agreement between RCM and RCM AP, each effective as of April 1, 2007.
The interim agreements are substantially the same as the fund's current
investment management agreements except that the interim agreements
provide for delegation of active management of the fund's portfolio to the
subadvisor. Beginning April 1, 2007, RCM and RCM AP will serve as the
fund's investment manager and subadvisor, respectively, under the Board
approved interim investment advisory agreements until shareholders approve
the new investment advisory agreements. Under the interim agreements, it is
also contemplated that RCM would delegate its administrative duties to
Allianz Global Investors Fund Management LLC.</FONT>
</P>
<H2 CLASS="CLASS_188" ALIGN="LEFT"><FONT COLOR="#000000">Korean Advisor</FONT></H2>
<P CLASS="CLASS_4" 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 DIMA's portfolio managers in light of their own expertise and
information from other sources in making investment decisions for the fund.</FONT>
</P>
<H2 CLASS="CLASS_187" ALIGN="LEFT"><FONT COLOR="#000000">Tender Offers</FONT></H2>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">The fund's Board of Directors has approved a series of measures designed to
enhance stockholder value.</FONT>
</P>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">On December 15, 2004, the fund announced its approval, subject to fiduciary
and other applicable requirements and regulatory approvals, of a purchase of
50% of outstanding shares at a price equal to 98% of the NAV per share as of
the day after the date such offer expired. The fund also announced its approval
of a plan to conduct six subsequent semiannual purchase offers in accordance,
each for 10% of the then-outstanding shares at a price equal to 98% of NAV
per share as of the day after the date each such offer expires, if shares trade on
the NYSE at an average weekly discount from NAV greater than 5% during a
13-week measuring period ending the last day of the preceding half-year. At
the discretion of the Board, payment for any shares purchased pursuant to the
repurchase program can be made in-kind through a <I>pro rata</I> distribution of
securities from the fund's portfolio on the day after the date such offer expires. </FONT>
</P>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">On July 8, 2005, the fund commenced a tender offer for up to 22,350,747
shares, representing approximately 50% of its issued and outstanding shares of
common stock in exchange for portfolio securities of the fund at a price per
share equal to 98% of the net asset value per share as of the day after the day
the offer expires. On August 25, 2005, the fund announced that it had
accepted, after adjusting for fractional shares in accordance with the terms of
the offer, the tender of 14,737,788 shares. This represented approximately
33% of the fund's outstanding shares.</FONT>
</P>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">The average weekly discount of the fund during the 13-week measuring
period ended December 31, 2005 was 5.63%. On January 11, 2006, the
Board met to consider a 10% repurchase offer pursuant to the repurchase
program. The Board determined that although the repurchase program
originally contemplated in-kind purchase offers in which tendering
stockholders would receive a pro rata share of the fund's portfolio, rather than
cash, the fund would conduct this tender offer for cash consideration. The
Board believed that using cash consideration would facilitate participation by
smaller stockholders and result in lower transaction costs. The Board intends
to evaluate on a case-by-case basis the consideration for any future offers under
the repurchase program, in light of its experience and then-prevailing market
and economic conditions.</FONT>
</P>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">On January 19, 2006, the fund commenced a tender offer for cash for up to
2,996,371 of its shares of common stock, representing approximately 10% its
outstanding shares, at a price per share equal to 98% of the net asset value per
share as of the day after the day the offer expires. The tender offer remained
open through February 16, 2006. <A NAME="ElojcO" ID="ElojcO"></A>The tender offer was completed at the end
of February and the fund accepted 2,996,358.371 shares for payment at a
price of $38.142 per share, which is equal to 98% of NAV per share
determined as of the close of New York Stock Exchange on February 17, 2006.</FONT>
</P>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">In April, the Board announced that the measurement period to determine
whether the fund would make the second tender offer in the fund's series of six
semiannual offers would be the 13-week measuring period preceding June 30,
2006. After trading at an average discount of 6.63% during the measurement
period, in July 2006 the fund announced that it would commence a further
tender offer for up to 10% of the fund's shares during the third quarter of
2006. In light of potential adverse tax consequences of successive cash tender
offers, the Board determined that the next tender offer should be made as an
in-kind offer consistent with the terms of the plan originally announced.</FONT>
</P>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">On September 29, 2006, the fund commenced an in-kind tender offer for up
to 2,696,734 of its shares of common stock, representing approximately 10%
of its outstanding shares, at a price per share equal to 98% of the net asset
value per share as of the day after the day the offer expires. The tender offer
remained open through October 27, 2006. The tender offer was completed at
the end of October and the fund accepted 2,696,734 shares in exchange for a
<I>pro rata</I> portion of the fund's portfolio securities at a price equal to 98% of the
NAV per share determined as of the close of the New York Stock Exchange on
October 30, 2006. </FONT>
</P>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">The fund's report is not an offer to purchase or the solicitation of an offer to
sell shares of the fund. The tender offers referred to in the fund's report 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 free at the Web site of the Securities and Exchange
Commission (www.sec.gov). An offer to purchase will not be made to, nor will
tenders pursuant to an 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>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">There can be no assurance that this offer or any other actions taken by the
Board will reduce or eliminate any market price discount from NAV of the
fund's shares. The market price of the fund shares will also be determined by,
among other things, the relative demand for and supply of fund shares in the
market, the fund's investment performance, the fund's dividends and yield,
and investor perception of the fund's overall attractiveness as an investment as
compared with other investment alternatives.</FONT>
</P>
<H2 CLASS="CLASS_186" ALIGN="LEFT"><FONT COLOR="#000000">Certifications</FONT></H2>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">The fund's chief executive officer has certified to the New York Stock
Exchange that, as of November 17, 2006, he was not aware of any violation by
the fund of applicable NYSE corporate governance listing standards. The
fund's reports to the Securities and Exchange Commission on Forms N-CSR
and N-Q contain certifications by the fund's chief executive officer and chief
financial officer that relate to the fund's disclosure in such reports and that are
required by the Rule 30a-2(a) under the Investment Company Act.</FONT>
</P>
<H2 CLASS="CLASS_185" ALIGN="LEFT"><FONT COLOR="#000000">Dividend Reinvestment and Cash Purchase Plan</FONT></H2>
<P CLASS="CLASS_12" 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">43</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;DWS
Scudder Investments Service Company, P.O. Box 219066, Kansas City, MO
4121-9066, (800) 294-4366.</FONT>
</P>
<H2 CLASS="CLASS_185" ALIGN="LEFT"><FONT COLOR="#000000">Proxy Voting </FONT></H2>
<P CLASS="CLASS_12" 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&nbsp;30 is
available on our Web site &#151; www.dws-scudder.com (click on &quot;proxy voting&quot;at
the bottom of the page) &#151; or on the SEC's Web site &#151; www.sec.gov. To
obtain a written copy of the fund's policies and procedures without charge,
upon request, call us toll free at (800) 621-1048.</FONT>
</P>
<H2 CLASS="CLASS_185" ALIGN="LEFT"><FONT COLOR="#000000">Share Repurchases</FONT></H2>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">The Board has 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&nbsp;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&nbsp;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&nbsp;have been authorized, even if the actual dividend or related share
issuance&nbsp;is&nbsp;lower. During the six months ended December 31, 2006, the
fund&nbsp;repurchased no shares pursuant to this&nbsp;share repurchase plan as
described&nbsp;above.</FONT>
</P>
<H2 CLASS="CLASS_185" ALIGN="LEFT"><FONT COLOR="#000000">Net Asset Value</FONT></H2>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">The fund's updated NAV is available daily on its Web site at
<B><FONT SIZE="-1">www.TheKoreaFund.com</FONT></B>. The fund's NAV, as of Friday, is published weekly
on Monday in <I>The Wall Street Journal</I> under the heading &quot;Closed End Funds.&quot;
The fund's market value is 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>
<P CLASS="CLASS_9" ALIGN="LEFT">
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="invsum" ID="invsum"></A>Investment Summary   <FONT COLOR="#000000">as of December 31, 2006</FONT></H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<P CLASS="CLASS_12" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">All performance shown is historical, assumes reinvestment of all dividend and
capital gain distributions, 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.theKoreaFund.com for the Fund's most recent performance.</FONT></B>
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_23" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="7">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Historical Information </FONT></B><FONT SIZE="-2" COLOR="#ffffff">as of 12/31/06</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_4">
<TD CLASS="CLASS_140" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_7" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_154" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="5">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Total Return (%)<SUP>d</SUP></FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_4">
<TD CLASS="CLASS_139" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_7" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_24" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_7" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_137" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">Current
Quarter</FONT>
</P>
</TD>
<TD CLASS="CLASS_137" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">One<BR>
Year</FONT>
</P>
</TD>
<TD CLASS="CLASS_137" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">Three
Year</FONT>
</P>
</TD>
<TD CLASS="CLASS_137" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">Five<BR>
Year</FONT>
</P>
</TD>
<TD CLASS="CLASS_137" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">Ten<BR>
Year</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_157" ALIGN="LEFT" VALIGN="TOP" ROWSPAN="2">
<B><FONT SIZE="-2" COLOR="#000000">Market Value<SUP>a</SUP></FONT></B>
<BR></TD>
<TD CLASS="CLASS_113" ALIGN="LEFT" VALIGN="MIDDLE">
<FONT SIZE="-2" COLOR="#000000">Cumulative</FONT><BR>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">10.94%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">16.61%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">137.46%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">257.17%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">271.74%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_112" ALIGN="LEFT" VALIGN="MIDDLE">
<FONT SIZE="-2" COLOR="#000000">Average Annual</FONT><BR>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">16.61%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">33.41%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">29.00%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">14.03%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_157" ALIGN="LEFT" VALIGN="TOP" ROWSPAN="2">
<B><FONT SIZE="-2" COLOR="#000000">Net Asset Value<SUP>a</SUP></FONT></B>
<BR></TD>
<TD CLASS="CLASS_113" ALIGN="LEFT" VALIGN="MIDDLE">
<FONT SIZE="-2" COLOR="#000000">Cumulative</FONT><BR>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">9.68%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">12.79%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">120.72%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">211.08%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">334.41%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_112" ALIGN="LEFT" VALIGN="MIDDLE">
<FONT SIZE="-2" COLOR="#000000">Average Annual</FONT><BR>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">12.79%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">30.20%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">25.48%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">15.82%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_157" ALIGN="LEFT" VALIGN="TOP" ROWSPAN="2">
<B><FONT SIZE="-2" COLOR="#000000">Index<SUP>b</SUP></FONT></B>
<BR></TD>
<TD CLASS="CLASS_113" ALIGN="LEFT" VALIGN="MIDDLE">
<FONT SIZE="-2" COLOR="#000000">Cumulative</FONT><BR>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">6.59%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">13.01%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">128.48%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">201.69%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">112.94%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_112" ALIGN="LEFT" VALIGN="MIDDLE">
<FONT SIZE="-2" COLOR="#000000">Average Annual</FONT><BR>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">13.01%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">31.68%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">24.70%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">7.85%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_157" ALIGN="LEFT" VALIGN="TOP" ROWSPAN="2">
<B><FONT SIZE="-2" COLOR="#000000">Index<SUP>c</SUP></FONT></B>
<BR></TD>
<TD CLASS="CLASS_113" ALIGN="LEFT" VALIGN="MIDDLE">
<FONT SIZE="-2" COLOR="#000000">Cumulative</FONT><BR>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">4.69%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">4.09%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">77.41%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">111.99%</FONT>
</P>
</TD>
<TD CLASS="CLASS_136" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">135.48%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_112" ALIGN="LEFT" VALIGN="MIDDLE">
<FONT SIZE="-2" COLOR="#000000">Average Annual</FONT><BR>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">&#151;</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">4.09%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">21.04%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">16.21%</FONT>
</P>
</TD>
<TD CLASS="CLASS_135" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">8.94%</FONT>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_23" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="12">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Per Share Information and Returns<SUP>(a)</SUP></FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_4">
<TD CLASS="CLASS_153" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_30" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="10">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#000000">Yearly periods ended December 31</FONT>
</P>
</TD>
<TD CLASS="CLASS_29" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD COLSPAN="12" ALIGN="CENTER" VALIGN="BOTTOM"><IMG SRC="kor_psi140.gif" ALT="kor_psi140"></TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_111" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_152" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">1997</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_152" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">1998</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_152" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">1999</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_152" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2000</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_152" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2001</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_152" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2002</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_152" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2003</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_152" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2004</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_152" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2005</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_152" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">2006</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_151" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_110" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net Asset
Value&nbsp;($)</FONT><BR>
</TD>
<TD CLASS="CLASS_83" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4.44</FONT><BR>
</TD>
<TD CLASS="CLASS_83" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">9.59</FONT><BR>
</TD>
<TD CLASS="CLASS_83" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">23.13</FONT><BR>
</TD>
<TD CLASS="CLASS_83" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">12.79</FONT><BR>
</TD>
<TD CLASS="CLASS_83" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">15.89</FONT><BR>
</TD>
<TD CLASS="CLASS_83" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">16.56</FONT><BR>
</TD>
<TD CLASS="CLASS_83" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">20.97</FONT><BR>
</TD>
<TD CLASS="CLASS_83" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">25.80</FONT><BR>
</TD>
<TD CLASS="CLASS_83" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">39.21</FONT><BR>
</TD>
<TD CLASS="CLASS_83" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">36.40</FONT><BR>
</TD>
<TD CLASS="CLASS_82" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_109" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Income
Dividends ($)</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">&#151;</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">&#151;</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">&#151;</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">.17</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">.01</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">.18</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">.30</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">.45</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">.50</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">.45</FONT><BR>
</TD>
<TD CLASS="CLASS_80" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_109" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Capital Gain
Distributions ($)</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">&#151;</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">&#151;</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">&#151;</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">&#151;</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1.53</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">.67</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">&#151;</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">.20</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">.35</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6.67</FONT><BR>
</TD>
<TD CLASS="CLASS_80" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_108" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total Return&nbsp;(%)</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">-66.50</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">115.99</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">141.19</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">-44.24</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">42.71</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">9.39</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">28.84</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">26.03</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">55.28</FONT><BR>
</TD>
<TD CLASS="CLASS_81" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">12.79</FONT><BR>
</TD>
<TD CLASS="CLASS_80" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>


</TABLE>
<I><FONT SIZE="-2"><SUP>a</SUP> Total return based on net asset value reflects changes in the Fund's net asset value during each
period. Total return based on market value reflects changes in market value. Each figure assumes
that dividend and capital gains, if any, were reinvested. These figures will differ depending upon
the level of any discount from or premium to NAV at which the Fund's shares traded during the
period.</FONT></I><BR>
<I><FONT SIZE="-2"><SUP>b</SUP> Korea Stock Price Index (&quot;KOSPI&quot;) in US dollars.</FONT></I><BR>
<I><FONT SIZE="-2"><SUP><A NAME="invsumend" ID="invsumend"></A>c</SUP>  KOSPI in local terms.</FONT></I><BR>
<I><FONT SIZE="-2"><SUP>d</SUP> Returns less than one year are not annualized.</FONT></I><BR>
<P CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">KOSPI is an unmanaged capitalization-weighted index of all common shares on the Stock Market
Division of the Korea Exchange (formerly the &quot;Korea Stock Exchange&quot;). The index is calculated using
closing local market prices and translates into US dollars using the London close foreign exchange
rates. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees
or expenses. It is not possible to invest directly into an index.</FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="portsum" ID="portsum"></A>Portfolio Summary  <FONT COLOR="#000000">as of December 31, 2006</FONT></H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_27" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Asset Allocation<BR>
</FONT></B><FONT SIZE="-2" COLOR="#ffffff">(Excludes Securities Lending Collateral)</FONT>
</P>
</TD>
<TD CLASS="CLASS_39" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">12/31/06</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_39" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">6/30/06</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_124" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Common Stocks</FONT>
<BR></TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">88%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">85%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Preferred Stocks</FONT>
<BR></TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">12%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">15%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_78" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_76" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">100%</FONT><BR>
</TD>
<TD CLASS="CLASS_76" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">100%</FONT><BR>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_27" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_128" 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 CLASS="CLASS_39" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">12/31/06</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_39" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">6/30/06</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_124" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Financials</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">23%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">22%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Information Technology</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">20%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">24%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Consumer Discretionary</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">17%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">16%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Industrials</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">12%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">7%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Consumer Staples</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">11%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">11%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Materials</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">8%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">9%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Telecommunications Services</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">5%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">4%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">Energy</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">3%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="TOP">
<FONT SIZE="-2" COLOR="#000000">6%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_11">
<TD CLASS="CLASS_107" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Health Care</FONT>
<BR></TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1%</FONT><BR>
</TD>
<TD CLASS="CLASS_79" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1%</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_78" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_76" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">100%</FONT><BR>
</TD>
<TD CLASS="CLASS_76" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">100%</FONT><BR>
</TD>
</TR>


</TABLE>
<P CLASS="CLASS_4" 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 CLASS="CLASS_1">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_26" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_36" ALIGN="JUSTIFY"><B><FONT SIZE="-2" COLOR="#ffffff">Ten Largest Equity Holdings <BR>
</FONT></B><FONT SIZE="-2" COLOR="#ffffff">As of December 31, 2006 (65.1% of Net Assets)</FONT><B><FONT SIZE="-2" COLOR="#ffffff"> </FONT></B>
</P>
</TD>
<TD CLASS="CLASS_25" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#ffffff">December 31, 2006</FONT>
</P>
<P CLASS="CLASS_9" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#ffffff">(% of Net Assets)</FONT><B><FONT SIZE="-2" COLOR="#ffffff"> </FONT></B>
</P>
</TD>
<TD CLASS="CLASS_24" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_128" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#ffffff">June 30, 2006</FONT>
</P>
<P CLASS="CLASS_130" ALIGN="CENTER"><FONT SIZE="-2" COLOR="#ffffff">(% of Net Assets)</FONT><B><FONT SIZE="-2" COLOR="#ffffff"> </FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_13">
<TD CLASS="CLASS_106" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Samsung Electronics Co., Ltd.</FONT></B>
<BR><FONT SIZE="-2" COLOR="#000000">Manufacturer of electronic parts</FONT><BR>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">17.8%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">17.7%</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_13">
<TD CLASS="CLASS_106" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Samsung Fire &amp; Marine Insurance Co., Ltd.</FONT></B>
<BR><FONT SIZE="-2" COLOR="#000000">Provider of insurance products</FONT><BR>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">10.0%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">7.7%</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_13">
<TD CLASS="CLASS_106" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">POSCO</FONT></B>
<BR><FONT SIZE="-2" COLOR="#000000">Manufacturer of steel </FONT><BR>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">7.3%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">6.5%</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_13">
<TD CLASS="CLASS_106" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Kookmin Bank</FONT></B>
<BR><FONT SIZE="-2" COLOR="#000000">Provider of commercial banking services</FONT><BR>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">5.8%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">5.0%</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_13">
<TD CLASS="CLASS_106" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Hyundai Motor Co.</FONT></B>
<BR><FONT SIZE="-2" COLOR="#000000">Manufacturer of motor vehicles</FONT><BR>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">5.7%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">6.3%</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_13">
<TD CLASS="CLASS_106" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Shinsegae Co., Ltd.</FONT></B>
<BR><FONT SIZE="-2" COLOR="#000000">Operator of discount stores</FONT><BR>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">4.6%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">3.5%</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_13">
<TD CLASS="CLASS_106" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">SK Telecom Co., Ltd.</FONT></B>
<BR><FONT SIZE="-2" COLOR="#000000">Provider of mobile telecommunication services</FONT><BR>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">4.6%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">3.8%</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_13">
<TD CLASS="CLASS_106" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Hankook Tire Co., Ltd.</FONT></B>
<BR><FONT SIZE="-2" COLOR="#000000">Manufacturer of tires, tire tubes and aluminum alloy
wheels</FONT><BR>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">3.6%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">2.9%</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_13">
<TD CLASS="CLASS_106" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">S-Oil Corp.</FONT></B>
<BR><FONT SIZE="-2" COLOR="#000000">Refiner of crude oil and seller of petroleum and related
products</FONT><BR>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">3.2%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">4.0%</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_13">
<TD CLASS="CLASS_106" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">KT&amp;G Corp.</FONT></B>
<BR><FONT SIZE="-2" COLOR="#000000">Producer of tobacco in Korea</FONT><BR>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">2.5%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_160" ALIGN="RIGHT" VALIGN="TOP">
<P CLASS="CLASS_161" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#3300d9">2.2%</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<P CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">Portfolio holdings are subject to change.</FONT></I>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">For more complete details about the Fund's investment portfolio, see page <A HREF="#portfolio">18</A>. A quarterly Fact Sheet
is&nbsp;available upon request. Please call (800) 349-4281.</FONT></I>
</P>
<P CLASS="CLASS_12" 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>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="portfolio" ID="portfolio"></A>Investment Portfolio   as of December 31, 2006 (Unaudited)</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_8">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_121" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_35" ALIGN="RIGHT" VALIGN="MIDDLE">
<P CLASS="CLASS_9" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">% of Net </FONT></B>
</P>
<P CLASS="CLASS_9" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Assets</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Shares</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_75" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_74" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_4">
<TD CLASS="CLASS_121" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Common Stocks</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" BGCOLOR="#000000" ALIGN="RIGHT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#ffffff">103.1%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_35" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Consumer Discretionary </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">14.3%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_170" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#3300d9">Auto Components </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">5.5%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hankook Tire Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,903,213</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">32,178,176</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hyundai Mobis </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">119,651</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">11,051,591</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Nexen Tire Corp. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">54,886</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,036,836</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samsung Climate Control Co., Ltd. (a) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">505,328</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,258,494</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">48,525,097</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#3300d9">Diversified Consumer Services </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.2%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">MegaStudy Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">53,674</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">7,908,147</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">YBM Sisa.com, Inc. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">110,494</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,779,868</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">10,688,015</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#3300d9">Hotels Restaurants &amp; Leisure </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.7%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hana Tour Service, Inc. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">80,104</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,121,846</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hotel Shilla Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">524,111</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,512,622</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">14,634,468</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Household Durables </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.8%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="RIGHT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Humax Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">330,319</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">9,158,039</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Woongjin Coway Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">243,279</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,733,150</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">15,891,189</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Media </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">2.2%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="RIGHT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Cheil Communications, Inc. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">42,359</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,523,281</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">ON*Media Corp.* </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">985,010</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,401,932</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">18,925,213</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Multiline Retail </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.5%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="RIGHT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Taegu Department Store Co., Ltd. (a) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">663,049</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">13,290,932</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Textiles, Apparel &amp; Luxury Goods</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">0.4%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="RIGHT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">BYC Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">24,144</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">3,893,333</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Consumer Staples </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">11.6%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_170" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Beverages </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">0.7%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hite Brewery Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">45,237</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">5,826,540</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Food &amp; Staples Retailing </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">4.6%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Shinsegae Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">65,729</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">40,990,353</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Food Products </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">3.5%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="RIGHT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">CJ Corp. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">60,823</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">7,302,264</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Crown Confectionary Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">58,376</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,540,576</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Nam Yang Dairy Products Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">19,500</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">17,600,520</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">31,443,360</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Personal Products </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">0.3%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="RIGHT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Cosmax, Inc. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">457,862</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">2,346,497</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Tobacco </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">2.5%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">KT&amp;G Corp. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">357,726</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">21,754,093</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Energy </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">2.6%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_170" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_85" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="4">
<B><FONT SIZE="-2" COLOR="#3300d9">Oil, Gas &amp; Consumable Fuels </FONT></B><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">S-Oil Corp. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">313,542</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">23,091,197</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Financials </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">23.5%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_170" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Capital Markets </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.8%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Korea Investment Holdings Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">236,725</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">11,742,066</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samsung Securities Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">80,554</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,366,035</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">16,108,101</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Commercial Banks </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">10.3%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hana Financial Group, Inc. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">153,980</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">8,075,503</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Industrial Bank of Korea (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">762,288</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">14,028,401</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Jeonbuk Bank (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,680,362</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">17,961,638</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Kookmin Bank </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">596,370</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">48,067,597</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Kookmin Bank (ADR) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">36,458</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,939,973</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">91,073,112</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Consumer Finance </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.2%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">LG Card Co., Ltd.* (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">151,743</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">10,099,813</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Insurance </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">10.2%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Korean Reinsurance Co. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">780,620</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">10,643,311</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Meritz Fire &amp; Marine Insurance Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,537,675</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">17,251,693</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samsung Fire &amp; Marine Insurance Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">360,542</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">62,379,219</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">90,274,223</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Health Care </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">0.7%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_170" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_85" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="4">
<B><FONT SIZE="-2" COLOR="#3300d9">Pharmaceuticals </FONT></B><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Choongwae Pharma Corp. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,675</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">85,242</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Yuhan Corp. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">32,849</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,278,005</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">6,363,247</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Industrials </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">13.8%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_170" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Airlines </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.3%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Korean Air Lines Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">295,906</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">11,227,892</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Building Products </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">0.2%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samwoo EMC Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">460,863</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">1,440,227</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Commercial Services &amp; Supplies </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.4%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">S1 Corp. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">276,519</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">12,886,879</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Construction &amp; Engineering </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">2.9%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">GS Engineering &amp; Construction Corp. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">138,464</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">12,318,299</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hyundai Engineering &amp; Construction Co.,
Ltd.* </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">186,177</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">11,365,616</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samho International Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">127,267</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,051,954</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">25,735,869</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Electrical Equipment</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">2.3%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Seoul Semiconductor Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">951,687</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">20,101,473</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Industrial Conglomerates </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.5%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samsung Techwin Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">361,570</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">13,124,105</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Machinery</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">0.8%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">JVM Co., Ltd.* </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">122,713</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">4,202,909</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">NEPES Corp.* </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">25</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">238</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">TK Corp. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">174,995</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,532,550</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">6,735,697</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Road &amp; Rail </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">2.2%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Korea Express Co., Ltd.* </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">197,855</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">19,967,993</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Trading Companies &amp; Distributors </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.2%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samsung Corp. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">334,174</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">10,966,749</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Information Technology </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">21.6%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Electronic Equipment &amp; Instruments</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.6%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Ace Digitech Co., Ltd.* (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">169,526</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,591,874</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">INTOPS Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">74,421</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,142,816</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">SE Co., Ltd. (c) (i)</FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">636,950</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">0</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">SFA Engineering Corp. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">284,655</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">9,450,108</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">14,184,798</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Internet Software &amp; Services</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">2.6%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Ahnlab, Inc. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">72,950</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,369,637</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">NHN Corp.* </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">153,751</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">18,772,790</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Thinkware Systems Corp.* </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">161,300</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,574,405</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">22,716,832</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Semiconductors &amp; Semiconductor
Equipment</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">17.4%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hynix Semiconductor, Inc.* (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">400,600</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">15,555,388</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Phoenix PDE Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">525,062</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,154,769</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samsung Electronics Co., Ltd. (d) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">207,781</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">136,081,570</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">153,791,727</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Materials </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">9.7%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_170" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Chemicals</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">1.2%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Kukdo Chemical Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">114,800</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,837,920</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">LG Chem Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">109,450</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,055,708</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Youlchon Chemical Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">202,680</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">2,453,382</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">10,347,010</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Metals &amp; Mining </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">8.5%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Dongkuk Steel Mill Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">206,935</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,210,638</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Korea Zinc Co., Ltd. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">56,201</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">5,943,765</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">POSCO </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">194,565</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">64,452,306</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">75,606,709</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Telecommunication Services</FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">5.3%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Diversified Telecommunication Services </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">0.7%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">LG Dacom Corp. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">296,043</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">6,199,155</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Wireless Telecommunication Services </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">4.6%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">SK Telecom Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">168,820</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">40,316,303</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_122" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"><B>Total Common Stocks</B><B> </B>(Cost $301,328,420)</FONT>
<BR></TD>
<TD CLASS="CLASS_65" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">910,568,201</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_169" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="4">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_4">
<TD CLASS="CLASS_121" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Preferred Stocks</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" BGCOLOR="#000000" ALIGN="RIGHT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#ffffff">14.0%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_129" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<P CLASS="CLASS_128" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Consumer Discretionary </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">5.7%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_170" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_85" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="4">
<B><FONT SIZE="-2" COLOR="#3300d9">Automobiles </FONT></B><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hyundai Motor Co. (b) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">758,697</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">32,294,469</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Hyundai Motor Co. (2nd) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">450,965</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">18,320,972</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">50,615,441</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Consumer Staples </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">1.6%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_170" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_85" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="4">
<B><FONT SIZE="-2" COLOR="#3300d9">Food Products </FONT></B><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">CJ Corp. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">159,279</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">9,180,291</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">CJ Corp. (2nd) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">30,740</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">3,290,280</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">CJ Corp. (3rd) (Convertible) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">18,160</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,819,700</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_123" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"> </FONT>
<BR></TD>
<TD CLASS="CLASS_84" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">14,290,271</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Energy </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">0.6%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_170" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_85" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="4">
<B><FONT SIZE="-2" COLOR="#3300d9">Oil, Gas &amp; Consumable Fuels </FONT></B><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">S-Oil Corp. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">95,282</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">5,373,368</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Financials </FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">3.7%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Capital Markets </FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">0.7%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_88" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Daishin Securities Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">360,070</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">6,123,277</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_87" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">Insurance</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-2" COLOR="#3300d9">3.0%</FONT></B><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_86" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samsung Fire &amp; Marine Insurance Co., Ltd. </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">325,506</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">26,266,260</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">Information Technology</FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<B><FONT SIZE="-1" COLOR="#000000">2.4%</FONT></B>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="LEFT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_85" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="4">
<B><FONT SIZE="-2" COLOR="#3300d9">Semiconductors &amp; Semiconductor Equipment </FONT></B><BR>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samsung Electronics Co., Ltd. (d) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">40,115</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">20,693,812</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_122" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="3">
<FONT SIZE="-2" COLOR="#000000"><B>Total Preferred Stocks</B><B> </B>(Cost $18,479,489)</FONT>
<BR></TD>
<TD CLASS="CLASS_65" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">123,362,429</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_8">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_121" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_35" ALIGN="RIGHT" VALIGN="MIDDLE">
<P CLASS="CLASS_9" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_35" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Principal
Amount</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_75" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_74" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_4">
<TD CLASS="CLASS_121" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Convertible Bond</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" BGCOLOR="#000000" ALIGN="RIGHT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#ffffff">0.0%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_129" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<P CLASS="CLASS_128" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_169" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="4">
<B><FONT SIZE="-1" COLOR="#000000">Consumer Staples </FONT></B>
<BR></TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Haitai Confectionery Loan Certificates
Zero&nbsp;Coupon, 11/28/2009* (e) (i) (j)
(Cost&nbsp;$0) </FONT>
<BR></TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Won</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">6,869,719</FONT><BR>
</TD>
<TD CLASS="CLASS_66" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">6,733</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_8">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_121" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_35" ALIGN="JUSTIFY" VALIGN="MIDDLE">
<P CLASS="CLASS_36" ALIGN="JUSTIFY"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_35" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000"><BR>
Shares</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_120" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_75" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_74" ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
</TR>

<TR CLASS="CLASS_4">
<TD CLASS="CLASS_121" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Rights</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" BGCOLOR="#000000" ALIGN="RIGHT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#ffffff">0.0%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_129" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<P CLASS="CLASS_128" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Samwood EMC Co., Ltd.* (i) (Cost $0) </FONT>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">133,126</FONT><BR>
</TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">138,852</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_169" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="4">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_4">
<TD CLASS="CLASS_121" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Securities Lending Collateral</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" BGCOLOR="#000000" ALIGN="RIGHT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#ffffff">11.9%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_35" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Daily Assets Fund Institutional, 5.34% (f) (g)
(Cost&nbsp;$105,364,353) </FONT>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">105,364,353</FONT><BR>
</TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">105,364,353</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_169" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="4">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
</TR>

<TR CLASS="CLASS_4">
<TD CLASS="CLASS_121" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Cash Equivalents</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_35" BGCOLOR="#000000" ALIGN="RIGHT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#ffffff">0.1%</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_129" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE" COLSPAN="2">
<P CLASS="CLASS_128" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR CLASS="CLASS_12">
<TD CLASS="CLASS_119" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Cash Management QP Trust, 5.46% (h)
(Cost&nbsp;$1,010,152) </FONT>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="MIDDLE">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">1,010,152</FONT><BR>
</TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">1,010,152</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_8">
<TR CLASS="CLASS_12">
<TD CLASS="CLASS_168" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
<BR></TD>
<TD CLASS="CLASS_34" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">% of Net
Assets</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_33" ALIGN="RIGHT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="RIGHT"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_117" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000"><B>Total Investment Portfolio</B> (Cost $426,182,414)<SUP>+</SUP></FONT>
<BR></TD>
<TD CLASS="CLASS_70" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     129.1</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_67" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</TD>
<TD CLASS="CLASS_67" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     1,140,450,720</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_9">
<TD CLASS="CLASS_156" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Other Assets and Liabilities, Net </FONT></B>
<BR></TD>
<TD CLASS="CLASS_69" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     (29.1)</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_66" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</TD>
<TD CLASS="CLASS_66" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     (256,930,148)</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_32" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000"><B>Net Assets</B></FONT>
<BR></TD>
<TD CLASS="CLASS_68" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     100.0</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_65" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</TD>
<TD CLASS="CLASS_65" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     883,520,572</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<I><FONT SIZE="-2">*    Non-income producing security.</FONT></I><BR>
<I><FONT SIZE="-2"><SUP>+</SUP> The cost for federal income tax purposes was $426,182,414. At December 31, 2006, net
unrealized appreciation for all securities based on tax cost was $714,268,306. This consisted of
aggregate gross unrealized appreciation for all securities in which there was an excess of value
over tax cost of $722,045,883 and aggregate gross unrealized depreciation for all securities in
which there was an excess of tax cost over value of $7,777,577.</FONT></I><BR>
<I><FONT SIZE="-2">(a)  Affiliated issuer (see Notes to Financial Statements).</FONT></I><BR>
<I><FONT SIZE="-2">(b)  All or a portion of these securities were on loan (see Notes to Financial Statements). The value of
all securities loaned at December 31, 2006 amounted to $100,316,254 which is 11.4% of net
assets.</FONT></I><BR>
<I><FONT SIZE="-2">(c)  The Fund may purchase securities that are subject to legal or contractual restrictions on resale
(&quot;restricted securities&quot;). Restricted securities are securities which have not been registered with the
Securities and Exchange Commission under the Securities Act of 1933. The fund may be unable to
sell a restricted security and it may be more difficult to determine a market value for a restricted
security. Moreover, if adverse market conditions were to develop during the period between the
Fund's decision to sell a restricted security and the point at which the Fund is permitted or able to
sell such security, the Fund might obtain a price less favorable than the price that prevailed when
it decided to sell. This investment practice, therefore, could have the effect of increasing the level
of illiquidity of the Fund. The future value of these securities is uncertain and there may be
changes in the estimated value of these securities.</FONT></I><BR>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_3">
<TD CLASS="CLASS_150" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Restricted
Securities</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_150" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Acquisition
Date</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_134" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Cost ($)</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_134" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Value ($)</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_134" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">As a % of
Net&nbsp;Assets</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_64" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">SE Co., Ltd.</FONT><BR>
</TD>
<TD CLASS="CLASS_64" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        12/22/2000</FONT>
</TD>
<TD CLASS="CLASS_56" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,616,637</FONT>
</TD>
<TD CLASS="CLASS_56" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        0</FONT>
</TD>
<TD CLASS="CLASS_56" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        0</FONT>
</TD>
</TR>


</TABLE>
<I><FONT SIZE="-2">(d)  At December 31, 2006, 17.7% of the Fund's net assets is invested in Samsung Electronics Co.,
Ltd.</FONT></I><BR>
<I><FONT SIZE="-2">(e)  Company in restructuring process, principal only subject to repayment.</FONT></I><BR>
<I><FONT SIZE="-2">(f)  Daily Assets Fund Institutional, an affiliated fund, is managed by Deutsche Investment
Management Americas Inc. The rate shown is the annualized seven-day yield at period end.</FONT></I><BR>
<I><FONT SIZE="-2">(g)  Represents collateral held in connection with securities lending.</FONT></I><BR>
<I><FONT SIZE="-2">(h)  Cash Management QP Trust, an affiliated fund, is managed by Deutsche Investment Management
Americas Inc. The rate shown is the annualized seven-day yield at period end.</FONT></I><BR>
<I><FONT SIZE="-2">(i)  Securities valued at fair value by management and approved in good faith following procedures
approved by the Directors, amounted to $145,585 (0.02% of net assets at December 31, 2006).
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, 2006 aggregated $1,616,638. The securities may also have certain restrictions as to resale.</FONT></I><BR>
<I><FONT SIZE="-2">(j)  Principal amount stated in Korean Won.</FONT></I><BR>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_11">
<TD CLASS="CLASS_124" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Currency Abbreviation</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_105" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Won     Korean Won</FONT><BR>
</TD>
</TR>


</TABLE>
<P CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">ADR: American Depositary Receipt</FONT></I>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>

<TD><A NAME="fins" ID="fins"></A>
<H1 CLASS="CLASS_12" ALIGN="LEFT">Financial Statements</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_23" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_128" 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, 2006 (Unaudited)</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_2">
<TD CLASS="CLASS_162" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Assets</FONT></B>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_104" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Investments in securities, at value:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Unaffiliated issuers (cost $307,994,063) &#151; including $100,316,254 of
securities&nbsp;loaned</FONT>
<BR></TD>
<TD CLASS="CLASS_62" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       996,425,316</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Affiliated issuers &#151; Note I (cost $11,813,846)</FONT>
<BR></TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        37,650,899</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Investment in Daily Assets Fund Institutional (cost&nbsp;$105,364,353)</FONT>
<BR></TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        105,364,353<SUP>*</SUP></FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Investment in Cash Management QP Trust (cost&nbsp;$1,010,152)</FONT>
<BR></TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,010,152</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total investments in securities, at value (cost $426,182,414)</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,140,450,720</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Korean won, at value (cost $11,943,791)</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        11,823,567</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Dividends receivable</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        10,764,327</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Interest receivable</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        148,744</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Other assets</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        45,496</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_22" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total assets</FONT><BR>
</TD>
<TD CLASS="CLASS_63" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,163,232,854</FONT>
</TD>
</TR>

<TR CLASS="CLASS_2">
<TD CLASS="CLASS_162" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Liabilities</FONT></B>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Due to custodian</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        117,278</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Distributions payable</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        172,806,789</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Payable upon return of securities loaned</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        105,364,353</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Accrued management fee</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        504,600</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Other accrued expenses and payables</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        919,262</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_22" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total liabilities</FONT><BR>
</TD>
<TD CLASS="CLASS_63" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        279,712,282</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_22" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net assets, at value</FONT></B>
<BR></TD>
<TD CLASS="CLASS_63" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    883,520,572</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_2">
<TD CLASS="CLASS_162" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Net Assets</FONT></B>
<BR></TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_104" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net assets consist of:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Undistributed net investment income</FONT><BR>
</TD>
<TD CLASS="CLASS_62" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,160,981</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net unrealized appreciation (depreciation) on:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Investments</FONT>
<BR></TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        714,268,306</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Won related transactions</FONT>
<BR></TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (121,722)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Accumulated net realized gain (loss)</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        116,131,161</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Cost of 25,738,289 shares held in treasury</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (793,098,270)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_103" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Paid-in capital</FONT><BR>
</TD>
<TD CLASS="CLASS_61" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        845,180,116</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_22" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net assets, at value</FONT></B>
<BR></TD>
<TD CLASS="CLASS_63" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    883,520,572</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_22" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net Asset Value</FONT></B><FONT SIZE="-2" COLOR="#000000"> per share ($883,520,572 &divide; 24,270,613 shares of common
stock issued and outstanding, $.01 par value, 200,000,000 shares
authorized)</FONT><BR>
</TD>
<TD CLASS="CLASS_63" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    36.40</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<FONT SIZE="-2"><SUP>*</SUP><I> Represents collateral on securities loaned.</I></FONT><BR>
<P CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<BR>
<BR>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_23" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_128" 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, 2006 (Unaudited)</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_5">
<TD CLASS="CLASS_167" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Investment Income</FONT></B>
<BR></TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_101" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Income:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Dividends &#151; unaffiliated issuers (net of foreign taxes withheld
of&nbsp;$2,163,609)</FONT><BR>
</TD>
<TD CLASS="CLASS_60" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       10,939,974</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Dividends &#151; affiliated issuers (net of foreign taxes withheld of $32,243)</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        163,171</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Interest (net of foreign taxes withheld of $7,637)</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        50,216</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Interest &#151; Cash Management QP Trust</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        55,155</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Securities lending income, including income from Daily Assets Fund
Institutional, net of borrower rebates</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        673,047</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_98" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total Income </FONT><BR>
</TD>
<TD CLASS="CLASS_58" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        11,881,563</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_98" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Expenses:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Management fee</FONT><BR>
</TD>
<TD CLASS="CLASS_58" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        2,924,044</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Services to shareholders</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        30,434</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Custodian and accounting fees</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        805,887</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Auditing</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        60,592</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Legal</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        85,146</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Directors' fees and expenses</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        374,545</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Reports to shareholders and annual meeting</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        233,380</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Stock exchange listing fees</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        30,284</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Other</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        71,722</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_98" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total expenses, before expense reductions</FONT><BR>
</TD>
<TD CLASS="CLASS_58" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        4,616,034</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Expense reductions</FONT><BR>
</TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (3,312)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_98" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Total expenses, after expense reductions</FONT><BR>
</TD>
<TD CLASS="CLASS_58" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        4,612,722</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_98" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net investment income (loss)</FONT></B>
<BR></TD>
<TD CLASS="CLASS_58" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     7,268,841</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_5">
<TD CLASS="CLASS_166" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="2">
<B><FONT SIZE="-1" COLOR="#000000">Realized and Unrealized Gain (Loss) on Investment Transactions</FONT></B>
<BR></TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_99" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net realized gain (loss) from:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Investments &#151; Unaffiliated issuers</FONT>
<BR></TD>
<TD CLASS="CLASS_60" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        142,479,495</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Investments &#151; Affiliated issuers</FONT>
<BR></TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        5,750,098</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Won related transactions</FONT>
<BR></TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        239,726</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_98" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_58" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        148,469,319</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_98" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net unrealized appreciation (depreciation) during the period on:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Investments</FONT>
<BR></TD>
<TD CLASS="CLASS_58" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (41,780,131)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_100" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Won related transactions</FONT>
<BR></TD>
<TD CLASS="CLASS_59" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (249,315)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_98" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I><BR>
</TD>
<TD CLASS="CLASS_58" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (42,029,446)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_98" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net gain (loss) on investment transactions</FONT></B>
<BR></TD>
<TD CLASS="CLASS_58" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">     106,439,873</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_98" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net increase (decrease) in net assets resulting from operations</FONT></B>
<BR></TD>
<TD CLASS="CLASS_58" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    113,708,714</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<P CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<BR>
<BR>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_23" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Statement of Changes in Net Assets</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_2">
<TD CLASS="CLASS_165" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-1" COLOR="#000000">Increase (Decrease) in Net Assets</FONT></B>
<BR></TD>
<TD CLASS="CLASS_149" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Six Months
Ended
December 31,
2006
(Unaudited)</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_149" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Year Ended
June 30, 2006</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_95" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Operations:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Net investment income (loss)</FONT><BR>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       7,268,841</FONT>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">$       10,147,400</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_95" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net realized gain (loss) on investment transactions</FONT><BR>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        148,469,319</FONT>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        451,791,633</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_95" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net unrealized appreciation (depreciation) during the
period on investment transactions </FONT><BR>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (42,029,446)</FONT>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (115,325,191)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_97" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net increase (decrease) in net assets resulting from
operations</FONT><BR>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        113,708,714</FONT>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        346,613,842</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_97" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Distributions to shareholders from:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Net investment income</FONT><BR>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (10,994,589)</FONT>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (14,981,852)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_97" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net realized gains</FONT><BR>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (161,812,200)</FONT>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (10,487,297)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_95" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Fund share transactions:</FONT><BR>
<FONT SIZE="-2" COLOR="#000000">Cost of shares tendered</FONT><BR>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (105,467,939)</FONT>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (573,899,756)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_97" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net increase (decrease) in net assets from Fund share
transactions</FONT><BR>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (105,467,939)</FONT>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (573,899,756)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_97" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Increase (decrease) in net assets</FONT></B>
<BR></TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (164,566,014)</FONT>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (252,755,063)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_95" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net assets at beginning of period</FONT><BR>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,048,086,586</FONT>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,300,841,649</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_97" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net assets at end of period (including undistributed
net investment income of $1,160,981 and $4,886,729,
respectively)</FONT><BR>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    883,520,572</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_57" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    1,048,086,586</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_2">
<TD CLASS="CLASS_164" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<B><FONT SIZE="-1" COLOR="#000000">Other Information</FONT></B>
<BR></TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_96" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Shares outstanding at beginning of period</FONT><BR>
</TD>
<TD CLASS="CLASS_56" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        26,967,347</FONT>
</TD>
<TD CLASS="CLASS_56" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        44,701,493</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_95" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Shares tendered</FONT><BR>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (2,696,734)</FONT>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (17,734,146)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_95" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Shares outstanding at end of period</FONT><BR>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        24,270,613</FONT>
</TD>
<TD CLASS="CLASS_55" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        26,967,347</FONT>
</TD>
</TR>


</TABLE>
<P CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">The accompanying notes are an integral part of the financial statements.</FONT></I>
</P>
<BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="high" ID="high"></A>Financial Highlights</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_4">
<TD CLASS="CLASS_127" BGCOLOR="#000000" ALIGN="LEFT" VALIGN="MIDDLE">
<P CLASS="CLASS_128" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#ffffff">Years Ended June 30,</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_38" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2006<SUP>a</SUP></FONT></B>
</P>
</TD>
<TD CLASS="CLASS_37" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2006</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_37" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2005</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_37" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2004</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_37" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2003</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_37" BGCOLOR="#000000" ALIGN="CENTER" VALIGN="MIDDLE">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#ffffff">2002</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_2">
<TD CLASS="CLASS_162" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="7">
<B><FONT SIZE="-1" COLOR="#000000">Per Share Operating Performance</FONT></B>
<BR></TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_93" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net asset value, beginning of period</FONT></B>
<BR></TD>
<TD CLASS="CLASS_48" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    38.87</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_47" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    29.10</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_47" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    21.55</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_47" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    17.62</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_47" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    20.20</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_47" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    13.01</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_115" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">Income (loss) from investment
operations</FONT></I><BR>
<FONT SIZE="-2" COLOR="#000000">Net investment income (loss)<SUP>b</SUP></FONT>
<BR></TD>
<TD CLASS="CLASS_54" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .28</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .33</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .40</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .20</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .17</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .11</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_92" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net realized and unrealized gain
(loss) on investment transactions</FONT>
<BR></TD>
<TD CLASS="CLASS_44" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        4.29</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        9.89</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7.80</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        3.90</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (1.90)</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7.20</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_115" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_114" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Total from investment operations</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_54" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        4.57</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        10.22</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        8.20</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        4.10</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (1.73)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7.31</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_94" ALIGN="LEFT" VALIGN="BOTTOM">
<I><FONT SIZE="-2" COLOR="#000000">Less distributions from:</FONT></I><BR>
<FONT SIZE="-2" COLOR="#000000">Net investment income</FONT>
<BR></TD>
<TD CLASS="CLASS_54" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.45)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.50)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.45)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.30)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.18)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_92" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net realized gains on investment
transactions</FONT>
<BR></TD>
<TD CLASS="CLASS_44" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (6.67)</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.35)</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.20)</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.67)</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.12)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_94" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_114" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Total distributions</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_54" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (7.12)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.85)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.65)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.30)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.85)</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (.12)</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_94" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">NAV accretion resulting from
repurchases, shares tendered and
reinvestment of distributions for shares
at value</FONT><BR>
</TD>
<TD CLASS="CLASS_54" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .08</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .40</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        &#151;</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .13</FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .00<SUP>c</SUP></FONT>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .00<SUP>c</SUP></FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_115" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Net asset value, end of period</FONT></B>
<BR></TD>
<TD CLASS="CLASS_54" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    36.40</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    38.87</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    29.10</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    21.55</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    17.62</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    20.20</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_94" ALIGN="LEFT" VALIGN="BOTTOM">
<B><FONT SIZE="-2" COLOR="#000000">Market value, end of period</FONT></B>
<BR></TD>
<TD CLASS="CLASS_54" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    34.17</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    36.33</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    27.35</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    18.85</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    14.99</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_53" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">$    16.44</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_2">
<TD CLASS="CLASS_162" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="7">
<B><FONT SIZE="-1" COLOR="#000000">Total Return</FONT></B>
<BR></TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_93" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Per share net asset value (%)<SUP>d</SUP></FONT><BR>
</TD>
<TD CLASS="CLASS_52" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        13.77<SUP>**</SUP></FONT>
</TD>
<TD CLASS="CLASS_51" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        36.47</FONT>
</TD>
<TD CLASS="CLASS_51" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        38.66</FONT>
</TD>
<TD CLASS="CLASS_51" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        24.15</FONT>
</TD>
<TD CLASS="CLASS_51" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (8.34)</FONT>
</TD>
<TD CLASS="CLASS_51" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        56.39</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_94" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Per share market value (%)<SUP>d</SUP></FONT><BR>
</TD>
<TD CLASS="CLASS_50" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        14.27<SUP>**</SUP></FONT>
</TD>
<TD CLASS="CLASS_49" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        35.72</FONT>
</TD>
<TD CLASS="CLASS_49" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        49.06</FONT>
</TD>
<TD CLASS="CLASS_49" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        27.66</FONT>
</TD>
<TD CLASS="CLASS_49" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        (4.29)</FONT>
</TD>
<TD CLASS="CLASS_49" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        56.71</FONT>
</TD>
</TR>

<TR CLASS="CLASS_2">
<TD CLASS="CLASS_162" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="7">
<B><FONT SIZE="-1" COLOR="#000000">Ratios to Average Net Assets and Supplemental Data</FONT></B>
<BR></TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_93" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Net assets, end of period ($&nbsp;millions)</FONT><BR>
</TD>
<TD CLASS="CLASS_48" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        884</FONT>
</TD>
<TD CLASS="CLASS_47" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,048</FONT>
</TD>
<TD CLASS="CLASS_47" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,301</FONT>
</TD>
<TD CLASS="CLASS_47" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        963</FONT>
</TD>
<TD CLASS="CLASS_47" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        879</FONT>
</TD>
<TD CLASS="CLASS_47" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1,009</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_92" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Ratio of expenses (%)</FONT><BR>
</TD>
<TD CLASS="CLASS_44" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .88<SUP>*</SUP></FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .89</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.13</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.27</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.26</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.21</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_92" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Ratio of net investment income
(loss)&nbsp;(%)</FONT><BR>
</TD>
<TD CLASS="CLASS_46" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .70<SUP>e**</SUP></FONT>
</TD>
<TD CLASS="CLASS_45" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .90</FONT>
</TD>
<TD CLASS="CLASS_45" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        1.58</FONT>
</TD>
<TD CLASS="CLASS_45" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .94</FONT>
</TD>
<TD CLASS="CLASS_45" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .99</FONT>
</TD>
<TD CLASS="CLASS_45" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        .69</FONT>
</TD>
</TR>

<TR CLASS="CLASS_6">
<TD CLASS="CLASS_92" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">Portfolio turnover rate&nbsp;(%)</FONT><BR>
</TD>
<TD CLASS="CLASS_44" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        22<SUP>*</SUP></FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        9</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        10</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        20</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        7</FONT>
</TD>
<TD CLASS="CLASS_43" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">        18</FONT>
</TD>
</TR>


</TABLE>
<I><FONT SIZE="-2"><SUP>a</SUP> For the six months ended December 31, 2006 (Unaudited).</FONT></I><BR>
<I><FONT SIZE="-2"><SUP>b</SUP> Based on average shares outstanding during the period.</FONT></I><BR>
<I><FONT SIZE="-2"><SUP>c</SUP> Amount is less than $.005 per share.</FONT></I><BR>
<I><FONT SIZE="-2"><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><BR>
<I><FONT SIZE="-2"><SUP>e</SUP> The ratio for six months ended December 31, 2006 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><BR>
<I><FONT SIZE="-2">*    Annualized.</FONT></I><BR>
<I><FONT SIZE="-2">**   Not annualized.</FONT></I><BR>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="notes" ID="notes"></A>Notes to Financial Statements  (Unaudited)</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>A. Significant Accounting Policies</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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 Cash Management QP Trust are valued at their net asset
value each business day.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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 uses a fair valuation model to value
Korean equity securities that takes into account events which have happened
subsequent to the Korea market closing up to the close of the New York Stock
Exchange.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">In September 2006, the Financial Accounting Standards Board (&quot;FASB&quot;) released
Statement of Financial Accounting Standards No. 157, &quot;Fair Value Measurements&quot;
(&quot;FAS 157&quot;). FAS 157 defines fair value, establishes a framework for measuring fair
value and expands disclosures about fair value measurements. FAS 157 is effective for
fiscal years beginning after November 15, 2007. As of December 31, 2006,
management does not believe the adoption of FAS 157 will impact the amounts
reported in the financial statements, however, additional disclosures will be required
about the inputs used to develop the measurements of fair value and the effect of
certain of the measurements reported in the statement of operations for a fiscal
period.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-1">Securities Lending.</FONT></B> The Fund may lend securities to financial institutions. The
Fund retains beneficial ownership of the securities it has loaned and continues to
receive interest and dividends paid by the issuer of securities and to participate in any
changes in their value. The Fund requires the borrowers of the securities to maintain
collateral with the Fund consisting of liquid, unencumbered assets having a value at
least equal to the value of the securities loaned. The Fund may invest the cash
collateral into a joint trading account in an affiliated money market fund pursuant to
Exemptive Orders issued by the SEC. The Fund receives compensation for lending
its securities either in the form of fees or by earning interest on invested cash
collateral net of borrower rebates fees paid to a lending agent. Either the Fund or the
borrower may terminate the loan. The Fund is subject to all investment risks
associated with the value of any cash collateral received, including, but not limited to,
interest rate, credit and liquidity risk associated with such investments.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">At December 31, 2006, the exchange rate for Korean won was W 930.00 to US $1.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">The Fund was subject to a securities transaction tax aggregating $524,495, due to the
tender offer and redemption-in-kind of the Fund's Korean securities that occurred on
September 27, 2006 (see Notes D and K). This tax and related fees of $50,000 were
charged to net realized gain (loss) from investments.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">In July 2006, FASB issued Interpretation No. 48 (&quot;FIN 48&quot;), &quot;Accounting for
Uncertainty in Income Taxes &#151; an interpretation of FASB Statement No. 109&quot; (the
&quot;Interpretation&quot;). The Interpretation establishes for the Fund a minimum threshold
for financial statement recognition of the benefit of positions taken in filing tax
returns (including whether the Fund is taxable in certain jurisdictions), and requires
certain expanded tax disclosures. The Interpretation is effective for fiscal years
beginning after December 15, 2006. On December 22, 2006, the SEC indicated that
they would not object if a Fund implements FIN 48 in the first required financial
statement reporting period for its fiscal year beginning after December 15, 2006.
Management has begun to evaluate the application of the Interpretation to the Fund
and is not in a position at this time to estimate the significance of its impact, if any,
on the Fund's financial statements.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-1">Distribution of Income and Gains.</FONT></B> Net investment income of the Fund, if any, 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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><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 the ex-dividend date principally in the
prior December and/or June period ends. 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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-1">Contingencies.</FONT></B> In the normal course of business, the Fund may enter into contracts
with service providers that contain general indemnification clauses. The Fund's
maximum exposure under these arrangements is unknown as this would involve
future claims that may be made against the Fund that have not yet been made.
However, based on experience, the Fund expects the risk of loss to be remote.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><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 net of foreign withholding taxes. Realized gains and
losses from investment transactions are recorded on an identified cost basis.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>B. Purchases and Sales of Securities</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">During the six months ended December 31, 2006, purchases and sales of investment
securities (excluding short-term investments and in-kind redemptions) aggregated
$113,144,152 and $116,016,202, respectively.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">In connection with the tender offer (see Note K), the Fund distributed Korean
portfolio securities and cash as payment for the tendered shares (in-kind
redemption). For financial reporting purposes, the Fund recognizes a gain on in-kind
redemptions to the extent the value of the distributed securities exceeds their cost.
Gains realized on in-kind redemptions are not recognized for federal income tax
purposes, and were reclassified from accumulated net realized gain (loss) to paid-in
capital at year-end. During the six months ended December 31, 2006, the Fund
realized $73,732,966 of net gain on such in-kind redemptions.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>C. Related Parties</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-1">Management Agreement.</FONT></B> Under the Management Agreement with Deutsche
Investment Management Americas Inc. (&quot;DIMA&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 fund pays a management fee
based on the Fund's month-end net assets, at the following annual rates:
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_3">
<TD CLASS="CLASS_91" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">First $250 million of the Fund's month-end net assets</FONT><BR>
</TD>
<TD CLASS="CLASS_134" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2">.600%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_10">
<TD CLASS="CLASS_90" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Next $250 million of such net assets</FONT><BR>
</TD>
<TD CLASS="CLASS_133" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2">.575%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_10">
<TD CLASS="CLASS_90" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Next $250 million of such net assets</FONT><BR>
</TD>
<TD CLASS="CLASS_133" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2">.550%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_10">
<TD CLASS="CLASS_90" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Next $250 million of such net assets</FONT><BR>
</TD>
<TD CLASS="CLASS_133" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2">.525%</FONT>
</P>
</TD>
</TR>

<TR CLASS="CLASS_10">
<TD CLASS="CLASS_90" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Over $1 billion of such net assets</FONT><BR>
</TD>
<TD CLASS="CLASS_133" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="CENTER"><FONT SIZE="-2">.500%</FONT>
</P>
</TD>
</TR>


</TABLE>
<P CLASS="CLASS_4" ALIGN="LEFT">For the six months ended December 31, 2006, the fee pursuant to the management
agreement was equivalent to an annualized effective rate of 0.56% of the Fund's
average month-end net assets.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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. The Manager compensates DeITMC out of its management
fee it received.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-1">Service Provider Fees.</FONT></B> DWS Scudder Investments Service Company
(&quot;DWS-SISC&quot;), an affiliate of the Manager, is the&nbsp;transfer agent, dividend-paying
and shareholder service agent for the Fund. Pursuant to a sub-transfer agency
agreement between DWS-SISC and DST Systems, Inc. (&quot;DST&quot;), DWS-SISC has
delegated certain transfer agent and dividend-paying agent functions to DST.
DWS-SISC compensates DST out of the shareholder servicing fee it receives from
the Fund. For the six months ended December 31, 2006, the amount charged to the
Fund by DWS-SISC aggregated $16,089, of which $8,338 is unpaid.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">DWS Scudder Service Corporation (&quot;DWS-SSC&quot;), an affiliate of the Manager, is the
shareholder communications agent of the Fund. For the six months ended
December&nbsp;31, 2006 the amount charged to the Fund by DWS-SSC aggregated
$7,500, of which $3,750 is unpaid.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">DWS Scudder Fund Accounting Corporation (&quot;DWS-SFAC&quot;), also an affiliate 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 DWS-SFAC and State Street Bank and Trust
Company (&quot;SSB&quot;), DWS-SFAC has delegated all accounting functions to SSB.
DWS-SFAC compensates SSB out of the accounting fee it receives from the Fund.
For the six months ended December 31, 2006, the amount charged to the Fund by
DWS-SFAC aggregated $238,765, of which&nbsp;$37,236 is unpaid.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><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 various committee services and for
the Board Chairperson.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-1">Cash Management QP Trust.</FONT></B> Pursuant to an Exemptive Order issued by the SEC,
the Fund may invest in the 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 its Manager a management fee
for the affiliated funds' investments in the QP Trust.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>D. Foreign Investment and Exchange Controls in Korea</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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. Through August 18, 2005, the Fund had a license from the Ministry of
Finance and Economy to invest in Korean securities and to repatriate income
received from dividends and interest earned on, and net realized capital gains 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). 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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">In order to complete its tender offer (See Note K), however, the Fund relinquished its
license from the Korean Ministry of Finance and Economy effective August 19,
2005. The Fund had engaged in negotiations with the Korean Ministry of Finance
and Economy concerning the feasibility of the Fund's license being amended to allow
the Fund to repatriate more than 10% of Fund capital. However, the Ministry of
Finance and Economy advised the Fund that the license cannot be amended as a
result of a change in the Korean regulations. As a result of the relinquishment of the
license, the Fund is subject to the Korean securities transaction tax equal to 0.3% of
the fair market value of any portfolio securities transferred by the Fund on the Korea
Exchange and 0.5% of the fair market value of any portfolio securities transferred
outside of the Korea Exchange. The relinquishment will not otherwise affect the
Fund's operations.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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 Exchange. As of December 31, 2006, the Fund and
its affiliates would require the approval of the Financial Supervisory Commission
(the&nbsp;&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&nbsp;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 SK&nbsp;Telecom Co., Ltd.
were&nbsp;subject to a foreign ownership limit of 49% as of December 31, 2006.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>E. Investing in the Korean Market</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>F. Ownership of the Fund</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">At December 31, 2006, the City of London Investment Group PLC held
approximately 21% of the outstanding shares of the Fund.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>G. Line of Credit</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">The Fund and several other affiliated funds (the &quot;Participants&quot;) share in a
$750&nbsp;million revolving credit facility administered by JPMorgan Chase Bank N.A.
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&nbsp;percent of its net assets under the agreement.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>H. Expense Reductions</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">For the six months ended December 31, 2006, the Manager agreed to reimburse the
Fund $3,312, which represents a portion of the fee savings expected to be realized by
the Manager related to the outsourcing by the Manager of certain administrative
services to an unaffiliated service provider.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>I. Transactions in Securities of Affiliated Issuers</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">An affiliated issuer is a company in which the Fund has ownership of at least 5% of
the voting securities. A summary of the Fund's transactions during the six months
ended December 31, 2006 with companies which are or were affiliates is as follows:
</P>
<TABLE BORDER="1" CELLPADDING=0 CELLSPACING=0 CLASS="CLASS_1">
<TR CLASS="CLASS_9">
<TD CLASS="CLASS_155" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="LEFT"><B><FONT SIZE="-2">Affiliate</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_147" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2">Common/
Preferred
Shares</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_69" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2">Total</FONT></B>
</P>
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2">Purchase
Cost&nbsp;($)</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_69" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2">Total
Sales</FONT></B>
</P>
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2">Cost&nbsp;($)</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_148" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2">Total</FONT></B>
</P>
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2">Realized
Gain/
(Loss)&nbsp;($)</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_147" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2">Dividend
Income
($)*</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_146" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2">Value at </FONT></B>
</P>
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2">December 31,<BR>
2006 ($)</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_89" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Samsung Climate
Control Co., Ltd.</FONT><BR>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        505,328</FONT>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        &#151;</FONT>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        191,899</FONT>
</TD>
<TD CLASS="CLASS_42" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        214,889</FONT>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        13,614</FONT>
</TD>
<TD CLASS="CLASS_40" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        4,258,494</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_89" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Seoul
Semiconductor
Co.,&nbsp;Ltd.</FONT><BR>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        951,687</FONT>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        &#151;</FONT>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        2,600,205</FONT>
</TD>
<TD CLASS="CLASS_42" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        4,587,863</FONT>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        149,557</FONT>
</TD>
<TD CLASS="CLASS_40" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        20,101,473</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_89" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">Taegu Department
Store Co., Ltd.</FONT><BR>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        663,049</FONT>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        &#151;</FONT>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        440,432</FONT>
</TD>
<TD CLASS="CLASS_42" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        947,346</FONT>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        &#151;</FONT>
</TD>
<TD CLASS="CLASS_40" ALIGN="LEFT" VALIGN="BOTTOM">
<FONT SIZE="-2">        13,290,932</FONT>
</TD>
</TR>

<TR CLASS="CLASS_7">
<TD CLASS="CLASS_138" ALIGN="LEFT" VALIGN="BOTTOM" COLSPAN="3">
<P CLASS="CLASS_7" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2">$    3,232,536</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_42" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2">$    5,750,098</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_41" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2">$    163,171</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_40" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><B><FONT SIZE="-2">$    37,650,899</FONT></B>
</P>
</TD>
</TR>


</TABLE>
<I><FONT SIZE="-2">*    Net of foreign taxes withheld.</FONT></I><BR>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>J. Share Repurchases</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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. The Fund did not repurchase shares during the six
months ended December 31, 2006 and the year ended June 30, 2006.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>K. Tender Offer </B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">In accordance with the Fund's Board of Directors approval on December 15, 2004,
of an offer to repurchase 50% of the Fund's outstanding shares, on July 8, 2005, the
Fund commenced a tender offer for up to 22,350,747 of its shares, representing
approximately 50% of its issued and outstanding shares of common stock, in
exchange for Korean portfolio securities of the Fund at a price per share equal to 98%
of the net asset value per share as of the day after the offer expires. Shareholders
exchanging their shares in the offer received a pro rata share of the Fund's portfolio.
The tender offer remained open through August 19, 2005. The shares tendered were
14,737,788 with a value of $459,612,656. The tender offer was conducted in order
to provide shareholders with an alternative source of liquidity for their investment in
Fund shares and as part of the Fund's continuous efforts to provide additional value
to shareholders.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">The program for future tender offers consists of 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. 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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">With respect to the 13-week measuring period ended December 31, 2005, on
January 19, 2006, the Fund commenced a tender offer for cash for up to
2,996,370.371 of its shares of common stock, representing approximately 10% its
outstanding shares, at a price per share equal to 98% of the net asset value per share
on February 17, 2006, the day after expiration of the offer. The shares tendered were
2,996,358.371 with a value of $114,287,100.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">With respect to the 13-week measuring period ended June 30, 2006, on
September&nbsp;29, 2006, the Fund commenced a tender offer up to 2,696,734 of its
shares of common stock, representing approximately 10% its outstanding shares, at a
price per share equal to 98% of the net asset value per share on October 30, 2006,
the day after expiration of the offer. The shares tendered were 2,696,734 with a value
of $105,467,939
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>L. Subsequent Event</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">On January 29, 2007, the Board of Directors announced that it had approved
(i)&nbsp;a&nbsp;new investment management agreement between the fund and RCM Capital
Management LLC (&quot;RCM&quot;) and (ii) a new subadvisory agreement between RCM
and RCM Asia Pacific Limited (&quot;RCM AP&quot;). A special shareholder meeting will be
held on April 11, 2007 to consider for approval the new investment advisory
agreement and subadvisory agreement.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">Additionally, the Board approved (i) an interim investment management agreement
between the Fund and RCM and (ii) an interim subadvisory agreement between
RCM and RCM AP, each effective as of April 1, 2007. The interim agreements are
substantially the same as the fund's current investment management agreements
except that the interim agreements provide for delegation of active management of
the fund's portfolio to the subadvisor. Beginning April 1, 2007, RCM and RCM AP
will serve as the fund's investment manager and subadvisor, respectively, under the
Board approved interim investment advisory agreements until shareholders approve
the new investment advisory agreements. Under the interim agreements, it is also
contemplated that RCM would delegate its administrative duties to Allianz Global
Investors Fund Management LLC.
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="smr" ID="smr"></A>Stockholder Meeting Results</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>The Korea Fund, Inc.</B>
</P>
<P CLASS="CLASS_12" 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 25, 2006, at the offices of Deutsche Asset
Management, 345 Park Avenue, New York, NY 10154. The following matter
was voted upon by Stockholders of said fund (the resulting votes are presented
below).</FONT>
</P>
<P CLASS="CLASS_19" ALIGN="LEFT"><FONT COLOR="#000000">1.       Election of Class III Directors 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 CLASS="CLASS_1">
<TR CLASS="CLASS_2">
<TD CLASS="CLASS_31" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_4" ALIGN="LEFT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
<TD CLASS="CLASS_20" ALIGN="CENTER" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Number of Votes:</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_131" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="LEFT"><B><FONT SIZE="-2" COLOR="#000000">Directors</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_71" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">For</FONT></B>
</P>
</TD>
<TD CLASS="CLASS_71" ALIGN="CENTER" VALIGN="BOTTOM">
<P CLASS="CLASS_9" ALIGN="CENTER"><B><FONT SIZE="-2" COLOR="#000000">Withheld</FONT></B>
</P>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_131" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_132" ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Ronaldo A. da Frota Nogueira</FONT>
</P>
</TD>
<TD CLASS="CLASS_71" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">15,913,941</FONT><BR>
</TD>
<TD CLASS="CLASS_71" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">153,266</FONT><BR>
</TD>
</TR>

<TR CLASS="CLASS_3">
<TD CLASS="CLASS_131" ALIGN="LEFT" VALIGN="BOTTOM">
<P CLASS="CLASS_132" ALIGN="LEFT"><FONT SIZE="-2" COLOR="#000000">Richard A. Silver</FONT>
</P>
</TD>
<TD CLASS="CLASS_71" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">15,894,463</FONT><BR>
</TD>
<TD CLASS="CLASS_71" ALIGN="RIGHT" VALIGN="BOTTOM">
<FONT SIZE="-2" COLOR="#000000">172,744</FONT><BR>
</TD>
</TR>


</TABLE>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="ima" ID="ima"></A>Investment Management Agreement
Approval</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">On July 12, 2006, the Board approved the continuance of the Investment
Advisory, Management and Administration Agreement with DIMA as the
Fund's manager effective as of October 1, 2007. Since December 2004, the
Board has conducted a review of the investment management arrangements
with DIMA. In the spring of 2005, DIMA installed a new investment
management team to manage the Fund. When the Board approved the
continuance of the Investment Advisory, Management and Administration
Agreement last year in July 2005, the Board made clear that it would continue
to monitor the progress of the new management team and the results of its
investment process.</FONT>
</P>
<P CLASS="CLASS_12" ALIGN="LEFT"><FONT COLOR="#000000">In reaching its decision to continue its relationship with DIMA and to renew
the Investment Advisory, Management and Administration Agreement, the
Board considered the following factors, among others:</FONT>
</P>
<P CLASS="CLASS_179" ALIGN="LEFT"><FONT COLOR="#000000">        <B><FONT SIZE="-1">The advisory fees paid by the Fund were substantially reduced and the
overall scope of services provided to the Fund and the standard of care
applicable to those services was unchanged.</FONT></B> Effective December 1, 2004,
the Board approved a reduction in the fees payable to DIMA. 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&nbsp;the Fund's current assets, this represents an overall reduction of
approximately 45% in the management fee. The Board also reviewed the
investment management fee rates paid to DIMA relative to those payable for
similar institutional accounts advised by DIMA, including differences in the
scope of services typically provided to mutual funds relative to institutional
accounts.</FONT>
</P>
<P CLASS="CLASS_179" ALIGN="LEFT"><FONT COLOR="#000000">        <B><FONT SIZE="-1">The resources and operations of DIMA, including the experience and
professional qualifications of DIMA personnel that would be providing
compliance and other services to the Fund.</FONT></B> The Board noted that, pursuant
to the Investment Advisory, Management and Administration Agreement,
DIMA will continue to provide the same services that it currently provides. </FONT>
</P>
<P CLASS="CLASS_179" ALIGN="LEFT"><FONT COLOR="#000000">   <B><FONT SIZE="-1">The extent to which economies of scale would be realized as the Fund
grows.</FONT></B> In this regard, the Board noted that the Fund's Investment Advisory,
Management and Administration Agreement includes fee breakpoints. With
regard to the Agreement, the Board considered that its terms, as discussed
above are substantially identical to the terms of the previous Investment
Advisory, Management and Administration Agreement. The Board
concluded that any existing economies of scale enjoyed by DIMA were
properly reflected in the current fee arrangements, and that in light of the
Fund's closed-end structure there were limited opportunities for future
material asset growth. </FONT>
</P>
<P CLASS="CLASS_179" ALIGN="LEFT"><FONT COLOR="#000000">        <B><FONT SIZE="-1">The investment performance of the Fund and DIMA, both absolute and
relative to various benchmarks and industry peer groups.</FONT></B> With respect to
the management fees paid to other investment advisors of similar funds, the
Board noted that the fee rated paid by the Fund were lower than the
applicable Lipper peer group and peer group identified by the Board (based
on data provided as of May 31, 2006). The Board gave a lesser weight to
fees paid by similar institutional accounts advised by DIMA, in light of the
material differences in the scope of services provided to mutual funds as
compared to those provided to institutional accounts. Taking into account
the foregoing, the Board concluded that the fee schedule in effect for the
Fund represents reasonable compensation in light of the nature, extent and
quality of the investment services being provided to the Fund. </FONT>
</P>
<P CLASS="CLASS_179" ALIGN="LEFT"><FONT COLOR="#000000">        <B><FONT SIZE="-1">The nature, scope and quality of the services provided by DIMA to the
Fund.</FONT></B> In this regard, the Board considered, among other things, that the
types of services to be provided under the previous Investment Advisory,
Management and Administration Agreement were comparable to those
typically found in agreements of such type. DIMA's personnel (including
particularly those personnel with responsibilities for providing services to the
Fund), resources, policies and investment processes. </FONT>
</P>
<P CLASS="CLASS_179" ALIGN="LEFT"><FONT COLOR="#000000">        <B><FONT SIZE="-1">The costs of the services to, and profits realized by, DIMA and its affiliates
from their relationships with the Fund.</FONT></B> The Board reviewed information
concerning the costs incurred and profits realized by DIMA during 2005
from providing investment management services to the Fund (and,
separately, to the entire DWS Scudder fund complex), and reviewed with
DIMA the cost allocation methodology used to determine DIMA's
profitability. In analyzing DIMA's costs and profits, the Board also reviewed
the fees paid to and services provided by DIMA and its affiliates with respect
to administrative services, transfer agent services and shareholder servicing,
as well as information regarding other possible benefits derived by DIMA
and its affiliates as a result of DIMA's relationship with the Fund. The Board
concluded that the Fund's investment management fee schedule represented
reasonable compensation in light of the costs incurred by DIMA and its
affiliates in providing services to the Fund. The Board also reviewed
information regarding the profitability of certain similar investment
management firms. The Board noted that while information regarding the
profitability of such firms is limited (and in some cases is not necessarily
prepared on a comparable basis), DIMA's overall profitability with respect to
the Fund (after taking into account other services provided to the Fund by
DIMA and its affiliates) was lower than the overall profitability levels of
many comparable firms for which such data was available. </FONT>
</P>
<P CLASS="CLASS_179" ALIGN="LEFT"><FONT COLOR="#000000">   <B><FONT SIZE="-1">The practices of DIMA regarding the selection and compensation of brokers
and dealers executing portfolio transactions for the Fund, including DIMA's
soft dollar practices.</FONT></B> The Board considered that a portion of the Fund's
brokerage may be allocated to affiliates of DIMA, subject to compliance
with applicable SEC rules. The Board also reviewed and approved, subject
to ongoing review by the Board, a plan whereby a limited portion of the
Fund's brokerage may in the future be allocated to brokers who acquire (and
provide to DIMA and its affiliates) research services from third parties that
are generally useful to DIMA and its affiliates in managing client portfolios.
The Board indicated that it would continue to monitor the allocation of the
Fund's brokerage to ensure that the principle of &quot;best price and execution&quot;
remains paramount in the portfolio trading process.</FONT>
</P>
<P CLASS="CLASS_179" ALIGN="LEFT"><FONT COLOR="#000000">        <B><FONT SIZE="-1">DIMA's commitment to and record of compliance, including its written
compliance policies and procedures.</FONT></B> In this regard, the Board considered
DIMA's commitment to indemnify the Fund against any costs and liabilities
related to lawsuits or regulatory actions making allegations regarding market
timing, revenue sharing, fund valuation or other subjects arising from or
relating to pending regulatory inquiries. The Board also considered the
significant attention and resources dedicated by DIMA to documenting and
enhancing its compliance processes in recent years. The Board noted in
particular (i) the experience and seniority of DIMA's chief compliance
officer; (ii) the large number of compliance personnel who report to DIMA's
chief compliance officer; and (iii) the substantial commitment of resources
by Deutsche Asset Management to compliance matters.</FONT>
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="drip" ID="drip"></A>Dividend Reinvestment and Cash
Purchase Plan</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>The Plan</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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 DWS 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 (800) 294-4366.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>Automatic Participation</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>Shares Held by a Nominee</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>Pricing of Dividends and Distributions</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>Voluntary Cash Purchases</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>Participant Plan Accounts</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>No Service Fee to Reinvest</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>Costs for Cash Purchases</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>Amendment or Termination</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_21" ALIGN="LEFT"><B>Transfer Agent Address and Telephone Number</B>
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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 DWS Scudder
Investments Service Company, P.O. Box 219066, Kansas City, MO 64121-9066,
(800) 294-4366.
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="TOP"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT"><A NAME="ps" ID="ps"></A>Privacy Statement</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>


</TABLE>
<BR>
<P CLASS="CLASS_4" ALIGN="LEFT">This privacy statement is issued by DWS Scudder Distributors, Inc., Deutsche
Investment Management Americas Inc., Deutsche Asset Management, Inc.,
Investment Company Capital Corporation, DeAM Investor Services, Inc., DWS
Trust Company and the DWS Funds.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">We never sell customer lists or individual client information. <B><FONT SIZE="-1" COLOR="#000000">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> </B>Internal policies are in place to protect confidentiality, while allowing
client needs to 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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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&nbsp;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 DWS
Scudder Companies listed above.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">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.
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">Questions on this policy may be sent to:
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">DWS Scudder <BR>
Attention: Correspondence &#151; Chicago<BR>
P.O. Box 219415<BR>
Kansas City, MO  64121-9415
</P>
<P CLASS="CLASS_4" ALIGN="LEFT">September 2006
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT">Notes</H1>
</TD>
</TR>




</TABLE>
<BR>
<P CLASS="CLASS_4" ALIGN="LEFT">
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT">Notes</H1>
</TD>
</TR>

<TR>
<TD ALIGN="RIGHT" VALIGN="BOTTOM" COLSPAN="2">
<P CLASS="CLASS_176" ALIGN="RIGHT"><I><FONT SIZE="-2" COLOR="#000000">&nbsp;</FONT></I>
</P>
</TD>
</TR>
</TABLE>
<BR>
<P CLASS="CLASS_4" ALIGN="LEFT">
</P>
<BR>
<TABLE BORDER="1">
<TR>
<TD ALIGN="LEFT" VALIGN="BOTTOM"><IMG SRC="kor_graphic.gif" ALT="kor_graphic"></TD>
<TD ALIGN="LEFT" VALIGN="BOTTOM">
<H1 CLASS="CLASS_12" ALIGN="LEFT">Notes</H1>
 </TD>
</TR>


</TABLE>
<BR>
<P CLASS="CLASS_4" ALIGN="LEFT">
</P>
<P CLASS="CLASS_4" ALIGN="LEFT"><IMG SRC="kor_backcover0.gif" ALT="kor_backcover0">
</P>

<HR>







<div style='width:600;'>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="655" style='border-collapse:collapse'>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 2.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>CODE OF ETHICS</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Not applicable.</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 3.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>AUDIT COMMITTEE FINANCIAL EXPERT</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Not applicable.</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 4.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PRINCIPAL ACCOUNTANT FEES AND SERVICES</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Not applicable.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="655" style='border-collapse:collapse'>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 5.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>AUDIT COMMITTEE OF LISTED REGISTRANTS</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Not Applicable</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 6.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>SCHEDULE OF INVESTMENTS</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Not Applicable</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 7.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Not applicable.</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 8.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Not applicable.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="655" style='border-collapse:collapse'>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 9.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="649" style='margin-left:4.65pt;border-collapse:collapse'>
    <tr >
        <td width="205" nowrap valign=bottom style='border:solid black 1.0pt; border-right:none;padding: 0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Period</font></p> </td>
        <td width="96" nowrap valign=bottom style='border:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Number of</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Shares Purchased*</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Average Price Paid</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>per Share</font></p> </td>
        <td width="132" nowrap valign=bottom style='border:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Number of</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Shares Purchased as</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Part of Publicly Announced</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Plans or Programs</font></p> </td>
        <td width="132" nowrap valign=bottom style='border:solid black 1.0pt; border-left:none;padding: 0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Maximum Number of</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Shares that May Yet Be</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Purchased Under the</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Plans or Programs</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="205" nowrap valign=bottom style=' border-left:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:none; border-left:solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt;   padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="132" nowrap valign=bottom style='border-top:none; border-left:solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt;   padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="205" nowrap valign=bottom style=' border-left:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>July 1 through July 31, 2005</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:none; border-left:solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-right: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.0</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>n/a</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>n/a</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="205" nowrap valign=bottom style=' border-left:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>August 1 through August 31</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:none; border-left:solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-right: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.0</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>n/a</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="205" nowrap valign=bottom style=' border-left:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>September 1 through September 30</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:none; border-left:solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-right: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.0</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>n/a</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>n/a</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="205" nowrap valign=bottom style=' border-left:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>October 1 through October 31*</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:none; border-left:solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2,696,734</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-right: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$39.1095</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2,696,734</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>n/a</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="205" nowrap valign=bottom style=' border-left:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>November 1 through November 30</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:none; border-left:solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-right: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.0</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>n/a</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>n/a</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="205" nowrap valign=bottom style=' border-left:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>December 1 through December 31</font></p> </td>
        <td width="96" nowrap valign=bottom style='border-top:none; border-left:solid black 1.0pt;border-bottom:none;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-right: solid black 1.0pt;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.0</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>n/a</font></p> </td>
        <td width="132" nowrap valign=bottom style=' border-right:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>n/a</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="205" nowrap valign=bottom style='border-top:none; border-left:solid black 1.0pt;border-bottom:solid black 1.0pt; border-right:none;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='border:solid black 1.0pt; border-top:none;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="132" nowrap valign=bottom style='border:solid black 1.0pt; border-top:none;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="132" nowrap valign=bottom style='border-top:none; border-left:none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="205" nowrap valign=bottom style='border-top:none; border-left:solid black 1.0pt;border-bottom:solid black 1.0pt; border-right:none;padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total </font></p> </td>
        <td width="96" nowrap valign=bottom style='border:solid black 1.0pt; border-top:none;padding: 0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2,696,734</font></p> </td>
        <td width="84" nowrap valign=bottom style='border-top:none; border-left:none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$39.1095</font></p> </td>
        <td width="132" nowrap valign=bottom style='border-top:none; border-left:none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2,696,734</font></p> </td>
        <td width="132" nowrap valign=bottom style='border-top:none; border-left:none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="205" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="96" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="84" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="132" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="132" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="649" style='margin-left:4.65pt;border-collapse:collapse'>
    <tr >
        <td width="649" style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>* 2,696,734 shares were tendered in exchange for a pro rata portion of the Fund&#146;s portfolio securities pursuant to a tender offer, which was announced on April 30, 2006, commenced on September 29, 2006, and expired on October 27, 2006.  The Fund had approved the tender offer for up to 2,696,734 of its issued and outstanding shares.  These shares represent approximately 10% of the Fund's outstanding shares.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="655" style='border-collapse:collapse'>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 10.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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 prior to April 1, 2007, should be mailed to the attention of the Secretary of the Fund at 345 Park Avenue New York, NY 10154.  Submissions on or after April 1, 2007, should be mailed to the attention of the Secretary of the Fund c/o&nbsp;Allianz Global Investors Fund Management LLC, 1345 Avenue of the Americas, New York, NY 10105.  See "Other information--Subsequent Event" in the Fund's Semiannual Report.</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 11.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>CONTROLS AND PROCEDURES</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.5in;text-indent:-.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:-30.6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:-30.6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:-30.6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:-30.6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>ITEM 12.</font></B></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:-30.6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>EXHIBITS</font></B></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:-30.6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:-30.6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)(1)&nbsp;&nbsp;&nbsp;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.</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:-30.6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="551" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:30.6pt;text-indent:-30.6pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face="Arial" size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


</div>




<div style='width:600;'>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Form N-CSRS Item F</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=3>SIGNATURES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>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.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="192" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Registrant: </font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Korea Fund, Inc.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="339" style='border-collapse:collapse'>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="147" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Michael G. Clark</font></u></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="323" style='border-collapse:collapse'>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="131" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Michael G. Clark</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>President</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="305" style='border-collapse:collapse; '>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td width="113" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 1, 2007</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>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.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="192" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Registrant: </font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Korea Fund, Inc.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="339" style='border-collapse:collapse'>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="147" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Michael G. Clark</font></u></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="323" style='border-collapse:collapse'>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="131" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Michael G. Clark</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>President</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="305" style='border-collapse:collapse; '>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td width="113" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 1, 2007</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="315" style='border-collapse:collapse; '>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td width="123" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Paul Schubert</font></u></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="300" style='border-collapse:collapse'>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="108" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Paul Schubert</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.5in; text-indent:0.5in;text-align:left;'><font size=2>Chief Financial Officer and Treasurer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="305" style='border-collapse:collapse; '>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>
        <td width="113" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 1, 2007</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<TYPE>EX-99.CERT
<SEQUENCE>5
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<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>



<p style=' margin-bottom:3pt; margin-top:12pt;text-align:right;'><img src="img1.gif"><br> <b><font face="Arial" size=4></font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:3pt; margin-top:12pt;text-align:left;'><b><font size=2>President</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Form N-CSRS Certification under Sarbanes Oxley Act</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>I, Michael G. Clark, certify that: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this report, filed on behalf of The Korea Fund, Inc., on Form N-CSRS;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=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; </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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; </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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: </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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; </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2"><PAGE>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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 </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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 </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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): </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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 </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="590" style='margin-left:5.4pt;border-collapse:collapse'>
    <tr style='page-break-inside:avoid;height:16.5pt'>
        <td width="289" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 1, 2007</font></p> </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Michael G. Clark</font></u></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:16.5pt'>
        <td width="289" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:3pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:3pt'><font size=2>Michael G. Clark</font></p>  </td> </tr>
    <tr style='page-break-inside:avoid;height:16.5pt'>
        <td width="289" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:5pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:5pt'><font color="#454545"><font size=2>President</font></font></p>  </td> </tr>
    <tr style='page-break-inside:avoid; height:16.5pt'>
        <td width="289" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Korea Fund, Inc.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:3pt; margin-top:12pt;text-align:right;'>
<img src="img2.gif"><br> <b><font face="Arial" size=4></font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:3pt; margin-top:12pt;text-align:left;'><b><font size=2>Chief Financial Officer and Treasurer</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Form N-CSRS Certification under Sarbanes Oxley Act</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>I, Paul Schubert, certify that: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this report, filed on behalf of The Korea Fund, Inc., on Form N-CSRS;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=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; </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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; </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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: </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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; </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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 </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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 </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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): </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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 </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="564" style='margin-left:5.4pt;border-collapse:collapse'>
    <tr style='page-break-inside:avoid;height:16.5pt'>
        <td width="276" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 1, 2007</font></p> </td>
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Paul Schubert</font></u></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:16.5pt'>
        <td width="276" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:3pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:3pt'><font size=2>Paul Schubert </font></p>  </td> </tr>
    <tr style='page-break-inside:avoid;height:16.5pt'>
        <td width="276" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:5pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:5pt'><font color="#454545"><font size=2>Chief Financial Officer and Treasurer</font></font></p>  </td> </tr>
    <tr style='page-break-inside:avoid; height:16.5pt'>
        <td width="276" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="288" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Korea Fund, Inc.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<DOCUMENT>
<TYPE>EX-99.906CERT
<SEQUENCE>8
<FILENAME>cert906-kor.htm
<DESCRIPTION>906 CERTIFICATION
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>



<p style=' margin-bottom:3pt; margin-top:12pt;text-align:right;'><img src="img1.gif"><br> <b><font face="Arial" size=4></font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>President</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Section 906 Certification under Sarbanes Oxley Act</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>I, Michael G. Clark, certify that: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

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        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this report, filed on behalf of The Korea Fund, Inc., on Form N-CSRS;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge and pursuant to 18 U.S.C. &sect; 1350, the periodic report on Form N-CSRS (the &#147;Report&#148;) fully complies with the requirements of &sect; 13 (a) or &sect;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.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="590" style='margin-left:5.4pt;border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 1, 2007</font></p> </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Michael G. Clark</font></u></p> </td> </tr>
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        <td width="289" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:3pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:3pt'><font size=2>Michael G. Clark </font></p>  </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:5pt'><font size=1>&nbsp;</font></p>  </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:5pt'><font color="#454545"><font size=2>President</font></font></p>  </td> </tr>
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        <td width="289" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Korea Fund, Inc.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:3pt; margin-top:12pt;text-align:right;'><img src="img2.gif"><br> <b><font face="Arial" size=4></font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:3pt; margin-top:12pt;text-align:left;'><b><font size=2>Chief Financial Officer and Treasurer</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Section 906 Certification under Sarbanes Oxley Act</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>I, Paul Schubert, certify that: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this report, filed on behalf of The Korea Fund, Inc., on Form N-CSRS;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge and pursuant to 18 U.S.C. &sect; 1350, the periodic report on Form N-CSRS (the &#147;Report&#148;) fully complies with the requirements of &sect; 13 (a) or &sect;&nbsp;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.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="590" style='margin-left:5.4pt;border-collapse:collapse'>
    <tr style='page-break-inside:avoid;height:16.5pt'>
        <td width="289" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>March 1, 2007</font></p> </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Paul Schubert</font></u></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:16.5pt'>
        <td width="289" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:3pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:3pt'><font size=2>Paul Schubert </font></p>  </td> </tr>
    <tr style='page-break-inside:avoid;height:16.5pt'>
        <td width="289" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:5pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:5pt'><font color="#454545"><font size=2>Chief Financial Officer and Treasurer</font></font></p>  </td> </tr>
    <tr style='page-break-inside:avoid; height:16.5pt'>
        <td width="289" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="301" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:16.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Korea Fund, Inc.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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