UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act File Number: 811-04058
Registrant Name: The Korea Fund, Inc.
Address of Principal Executive Offices: 4 Embarcadero Center, 30th Floor, San Francisco, CA 94111
Name and Address of Agent for Service: Brian S. Shlissel – 1345 Avenue of the Americas, New York, New York 10105
Registrant’s telephone number, including area code: 212-739-3369
Date of Fiscal Year End: June 30, 2008
Date of Reporting Period: March 31, 2008
Form N-Q is to be used by the registered management investment company, other than a small business investment company registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b 1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Schedule of Investments
The Korea Fund, Inc. Schedule of InvestmentsMarch 31, 2008 (unaudited)
Shares
Value*
COMMON STOCK—95.5%
Capital Markets—1.5%
225,692
Korea Investment Holdings Co., Ltd. (a)
$10,648,058
Chemicals—2.4%
35,918
KCC Corp. (a)
16,659,756
Commercial Banks—10.9%
263,990
Hana Financial Group, Inc.
10,820,162
205,061
Kookmin Bank
11,509,561
1,470,340
Korea Exchange Bank
19,655,300
674,181
Shinhan Financial Group Co., Ltd.
35,616,268
77,601,291
Commercial Services & Supplies—1.7%
224,668
S1 Corp.
11,681,914
Construction & Engineering—10.1%
146,829
GS Engineering & Construction Corp.
21,667,769
351,076
Hyundai Development Co.
24,138,999
299,020
Hyundai Engineering & Construction Co., Ltd. (a)
26,056,943
71,863,711
Consumer Finance—2.3%
342,426
Samsung Card Co., Ltd.
16,229,361
Diversified Consumer Services—1.1%
22,292
MegaStudy Co., Ltd.
7,435,067
Diversified Industrials—2.0%
191,635
LG Corp.
14,476,882
Electrical Equipment—1.8%
284,371
LG.Philips LCD Co., Ltd. (a)
12,697,905
Electronic Equipment & Instruments—1.9%
202,404
SFA Engineering Corp.
13,408,637
Food & Staples Retailing—3.1%
34,680
Shinsegae Co., Ltd.
21,902,578
Hotels, Restaurants & Leisure—1.1%
157,313
Hana Tour Service, Inc. (a)
7,990,880
Insurance—2.0%
69,805
Samsung Fire & Marine Insurance Co., Ltd.
14,471,761
Internet Software & Services—4.2%
523,783
LG Dacom Corp.
9,923,789
85,496
NHN Corp. (b)
20,076,738
30,000,527
The Korea Fund, Inc. Schedule of Investments
March 31, 2008 (unaudited)
Shares
Value*
Machinery—1.7%
87,704
Doosan Heavy Industries and Construction Co., Ltd. (a)
$11,832,966
Media—2.2%
50,172
Cheil Communications, Inc.
12,103,027
1,024,140
ON*Media Corp. (a)(b)
3,837,810
15,940,837
Metals & Mining—7.7%
263,105
Dongkuk Steel Mill Co., Ltd.
10,329,530
93,282
POSCO
44,653,890
54,983,420
Oil & Gas—1.6%
110,190
SK Energy Co., Ltd.
11,407,310
Pharmaceuticals—2.2%
84,414
Yuhan Corp. (a)
15,877,126
Road & Rail—2.0%
127,604
Korea Express Co., Ltd. (b)
14,322,805
Semi-conductors—12.5%
513,930
Hynix Semiconductor, Inc. (a)(b)
14,491,900
104,700
Samsung Electronics Co., Ltd.
66,207,295
150,240
Samsung Techwin Co., Ltd. (a)
8,215,590
88,914,785
Shipbuilding—7.8%
438,453
Daewoo Shipbuilding & Marine Engineering Co., Ltd.
16,838,945
102,531
Hyundai Heavy Industries Co., Ltd. (a)
38,579,291
55,418,236
Tobacco—3.8%
343,794
KT&G Corp.
27,002,160
Wholesale—6.0%
525,230
Daewoo International Corp.
19,027,293
338,869
Samsung Corp.
23,830,134
42,857,427
Wireless Telecommunications Services—1.9%
70,612
SK Telecom Co., Ltd.
13,366,499
Total Common Stock (cost—$424,137,832)
678,991,899
SHORT-TERM INVESTMENT—11.5%
Collateral Invested for Securities on Loan (c)—11.5%
82,160,747
BNY Institutional Cash Reserves Fund, 2.90% (cost—$82,160,747)
82,160,747
Total Investments (cost—$506,298,579) (d)—107.0%
761,152,646
Liabilities in excess of other assets—(7.0)%
(49,974,351)
Net Assets—100.0%
$711,178,295
Notes to Schedule of Investments:
*Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Portfolio securities and other financial instruments, for which market quotations are not readily available or if a development/event occurs that may significantly impact the value of a security, are fair-valued, in good faith, pursuant to guidelines established by the Board of Directors or persons acting at their discretion pursuant to guidelines established by the Board of Directors. The Fund’s investments are valued daily and the net asset value (‘‘NAV’’) is calculated as of the close of regular trading (normally 4:00 p.m. Eastern time) on the New York Stock Exchange (‘‘NYSE’’) on each day the NYSE is open for business using prices supplied by dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the last quoted mean price for those securities for which the over-the-counter market is the primary market or for listed securities in which there were no sales. With respect to Korean equity securities, the Fund fair values its securities daily using modeling tools provided by a statistical research service. This service utilizes statistics and programs based on historical performance of markets and other economic data (which may include changes in the value of U.S. securities or security indices). Fair value estimates used by the Fund for Korean equity securities may differ from the value realized from the sale of those securities. Short-term securities maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days. The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold.
(a) All or portion of security on loan with an aggregate market value of $77,789,153; cash collateral of $82,160,747 was received with which the Fund purchased short-term investments.
(b) Non-income producing.
(c) Security purchased with the cash proceeds from securities on loan.
(d) Securities with an aggregate value of $678,991,899, representing 95.5% of net assets, were valued utilizing modeling tools provided by a third-party vendor.
Item 2. Controls and Procedures
(a) The registrant's President and Chief Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act (17CFR270.30a-3(c)), as amended are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b) There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3 (d)) under the Act (17 CFR270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits
(a) Exhibit 99.302 Cert. – Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: The Korea Fund, Inc.
By:/s/ Robert Goldstein Robert Goldstein
President and Chief Executive Officer
Date: May 27, 2008
By:/s/ Brian S. Shlissel Brian S. Shlissel
Treasurer, Principal Financial & Accounting Officer
Date: May 27, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dated indicated.
By:/s/ Robert Goldstein Robert Goldstein
President and Chief Executive Officer
Date: May 27, 2008
By:/s/ Brian S. Shlissel Brian S. Shlissel
Treasurer, Principal Financial & Accounting Officer
Date: May 27, 2008