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<SEC-DOCUMENT>0000950123-08-010732.txt : 20080908
<SEC-HEADER>0000950123-08-010732.hdr.sgml : 20080908
<ACCEPTANCE-DATETIME>20080908170827
ACCESSION NUMBER:		0000950123-08-010732
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080905
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080908
DATE AS OF CHANGE:		20080908

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-04058
		FILM NUMBER:		081061492

	BUSINESS ADDRESS:	
		STREET 1:		ALLIANZ GLOBAL INVESTORS
		STREET 2:		1345 AVENUE OF THE AMERICAS
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10105
		BUSINESS PHONE:		212-739-3226

	MAIL ADDRESS:	
		STREET 1:		ALLIANZ GLOBAL INVESTORS
		STREET 2:		1345 AVENUE OF THE AMERICAS
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10105
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>y71063e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549<BR>
<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported) September&nbsp;5, 2008</B><BR>
<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>The Korea Fund, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>(Exact name of registrant as specified in its charter)</B></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Maryland</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>811-04058</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>13-3226146</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>(State or other jurisdiction <BR>
of incorporation)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Commission File Number)</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(IRS Employer<BR>
Identification No.)</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center"><B>Allianz Global Investors Fund Management LLC</B><BR></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center"><B>1345 Avenue of the Americas</B><BR></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center"><B>New York, New York</B><BR></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center"><B>Attn.: Fund Secretary</B><BR></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>10105</B></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center"><B>(Address of principal executive offices)</B><BR></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>(Zip Code)</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Registrant&#146;s telephone number, including area code (800)&nbsp;285-4086</B><BR>
<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<!--TOC-->
<!--/TOC-->




<!-- link1 "Item&nbsp;8.01. Other Events" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8.01. Other Events</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Korea Fund, Inc. (the &#147;Fund&#148;) has mailed its Annual Report for the fiscal year ending June&nbsp;30,
2008. Accompanying the Annual Report was a letter from the Chairman of the Board of Directors
dated July&nbsp;31, 2008, a copy of which is included herewith as Exhibit&nbsp;99.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Exhibit&nbsp;99.1 is a copy of the Chairman&#146;s Letter to Stockholders dated July&nbsp;31, 2008 (the
&#147;Chairman&#146;s Letter&#148;). The Chairman&#146;s Letter is being furnished pursuant to Item&nbsp;8.01 of this
Current Report on Form 8-K, and the information contained in Exhibit&nbsp;99.1 shall not be deemed to be
&#147;filed&#148; for purposes of Section&nbsp;18 of the Securities Exchange Act of 1934, as amended, or otherwise
subject to the liabilities under Section&nbsp;18. Furthermore, the information contained in Exhibit&nbsp;99.1
shall not be deemed to be incorporated by reference into the filings of the Fund under the
Securities Act of 1933, as amended.
</DIV>
<!-- link1 "Item&nbsp;9.01 Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9. 01 Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;Exhibits.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman&#146;s Letter to Stockholders dated July&nbsp;31, 2008.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<!-- link1 "Signature" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Signature</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">The Korea Fund, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Registrant)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: September&nbsp;5, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">/s/ Robert Goldstein
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
(Signature)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Name: Robert Goldstein</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "EXHIBIT INDEX" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman&#146;s Letter to Stockholders dated July&nbsp;31, 2008.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>y71063exv99w1.htm
<DESCRIPTION>EX-99.1: CHAIRMAN'S LETTER
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Korea Fund, Inc. Chairman&#146;s Letter to Stockholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Fellow Stockholders,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The close of another financial year provides the opportunity for me to update stockholders of the
happenings in your Fund and particularly those events of significance of the recently concluded
financial year&#151;that is from July&nbsp;1, 2007 to June&nbsp;30, 2008&#151;otherwise referred to in this letter as
the &#147;Period&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In line with many other stock markets, the South Korean stock market continued its bull run, that
originated in 2003, through to October&nbsp;2007. Thereafter and again in line with markets globally,
Korea succumbed to the concerns of both international debt markets and rising inflationary
pressures and moved in a broad sideways trend within its 2007-08 trading range, closing the Period
at about the same levels as were witnessed in May&nbsp;2007. The net result for the KOSPI over the
Period being a decline, as measured in US dollars, of 15.2%. Over the Period the Fund&#146;s net asset
value (&#147;NAV&#148;) declined by 14.7%. Over the Period the MSCI Korea (Total Return) Index declined
12.7%. Following continued excellent performance of the Korean equities market in the first quarter
of the Period, the deteriorating economic global environment combined with a heavier exposure to
the industrial sector, and somewhat underweight exposure to the materials sector, led to a less
strong performance against the benchmark KOSPI for the balance of the Period. That said, I believe
your Fund&#146;s performance remained strong within a 16-member peer group assembled by your Board&#146;s
investment consultant* and comprised of U.S. and non-U.S. Korean funds against which your Board
monitors the Fund&#146;s performance and in which the Fund ranked 6th for the 12-month period ended June
30, 2008. Throughout the Period the top five active positions within the portfolio each contributed
positively to overall performance. As at the time of writing, the portfolio was weighted away from
value towards growth factors with the majority of portfolio risk remaining attributable to stock
selection.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In conjunction with your Board, the Board&#146;s Hong Kong based investment consultant continues to
monitor quarter-by-quarter the performance of your investment manager together with the quality and
style of performance; in this regard it is pleasing that the management team has been strengthened
further during the year with the appointment of additional analysts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A report from our Investment Manager is contained in the Fund&#146;s Annual Report which expands on
those macro factors affecting the Korean market and our manager&#146;s rationale for its portfolio
structure. I believe that whilst the world, and perhaps more so Asia, suffers from economic
overheating, it is encouraging that the government of South Korea has, in my view, probably adopted
the firmest stance against rising inflationary pressures as is reflected by it being the only
country within the Asian Development Bank&#146;s recent survey that demonstrates positive real interest
rates: I would hope that this firm economic policy continues.
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>The peer group assembled by your Board&#146;s investment consultant contains both funds registered
under the Investment Company Act of 1940 and entities that are not so registered. Consequently,
certain of the entities in the peer group are subject to different regulatory regimes than the Fund
and may calculate their performance using different methods, both of which may affect the
performance of such entities reported to the Board.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Besides closely monitoring the direction of your Fund&#146;s assets for the advantage of all
stockholders, your board maintains a close eye on the numerous financial, administrative and other
matters. A keen weather eye is maintained on your Fund&#146;s share price relative to its NAV. In
accordance with a commitment previously made to stockholders, an in-kind tender offer was triggered
based on the Fund&#146;s shares trading at an average discount of more than 7.5% during the last quarter
of 2007. As a result, the Board authorized a tender offer for up to 15% of the outstanding shares
at a price of 98% of NAV as at the day following the offer&#146;s close. The Fund accepted for
repurchase 4,303,210 shares representing approximately 15% of its outstanding shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As I have written previously, the combination of the change in your Fund&#146;s investment manager
combined with a series of tender offers, has led to the realization of considerable capital gains
that are required by the U.S. Internal Revenue Code to be paid to stockholders to avoid the
necessity of your Fund having to pay tax thereon. This program has led to a dividend amounting to
$15.94 per share being paid in November&nbsp;2007&#151;a significantly greater figure than the $6.67 paid in
November&nbsp;2006, with a further $1.30 per share having been paid to stockholders in January&nbsp;2008.
Since the commencement of this program in 2004, a total of 29.7&nbsp;million shares (approx $897.0
million) has been tendered. During this time, the Fund has paid dividends (comprised of income and
capital gains) of $26.03 per share. It is encouraging to me that the retained unrealized capital
gains have, as your Board intended, been reduced substantially and, at June&nbsp;30, 2008 stood at
$167.9&nbsp;million or $6.88 per share representing approximately 30% of the NAV compared to $543.5
million or $12.16 per share representing approximately 56% of NAV at June&nbsp;30, 2004. At June&nbsp;30,
2008, the Fund had approximately $225.4&nbsp;million ($9.24 per share) of realized capital gains, which
are expected to be paid to stockholders in January&nbsp;2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the past year your Board has endeavored to update the Fund&#146;s administrative functions to the
level of best industry practices by introducing a quarterly earnings report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As I have written previously, your Board continues to review the optimum methodology by which to
report your Fund&#146;s daily NAV. Given that the Korean market closes more than 8 hours ahead of the
opening of the New York Stock exchange and the Fund&#146;s NAV is currently calculated as of the close
of the NYSE (with fair value adjustments made by a pricing vendor), your Board is considering if it
might be in the best interest of stockholders if the NAV is calculated and made available ahead of
the opening of the NYSE. We will be soliciting the suggestions of certain stockholders of their
preferred choice regarding the timing of such NAV announcements. Given that the majority of
stockholders are not known due to their use of nominee accounts, your Board welcomes any input with
regard to such timing by communicating preferences to me at julianreid@btopenworld.com or my
mailing address at 1 Queen Anne&#146;s Gate, London, SW1H 9BT, England.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A recent but already major contributor to non-investment income, introduced by your Board, is stock
lending. Given the less favorable market conditions&#151;providing an environment more conducive for
such lending, activity in this area has picked up in the Period. For the full year Period, income
to your Fund from stock lending amounted to approximately $1.6&nbsp;million which compares with $1.2
million for the Fund&#146;s fiscal year ended June&nbsp;30, 2007. Looking forward, advisors to your Fund see
continued demand for stock lending activities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The role of enhanced shareholder support for your Fund remains uppermost at all times amongst
directors and, during the Period, further improvements were made to your Fund&#146;s website
www.thekoreafund.com. The benefits of recent additional input has and I believe will result in both
more and longer visits. Further, and after liaison with Standard &#038; Poor&#146;s, the fundamental research
provider, your Board has instigated fundamental coverage of your Fund by S&#038;P, which is available
not only to a wide cross section of the Street but also on your Fund&#146;s website for the added
benefit of both stockholders and possible future investors.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Finally may I thank stockholders for their support during the Period and particularly thank those
stockholders who proposed and endorsed my nomination that permitted me to collect <I>Fund Direction&#146;s</I> &#145;Small Board Trustee of the Year&#146; award for The Korea Fund, Inc. at the Mutual Fund Industry awards
in March. It was with pride that, collecting the award, I was able to give a strong vote of thanks
for the support of all stockholders, my fellow directors and each of your Fund&#146;s service providers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Yours very sincerely
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Julian Reid<BR>
Chairman<BR>
For and on behalf of The Korea Fund, Inc.<BR>
July&nbsp;31, 2008

</DIV>


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