Pursuant to the Discount Management Program previously adopted by the Board of Directors of The Korea Fund, Inc. (the "Fund") (NYSE: KF), the Discount Management Committee, has voted to institute a share repurchase program for the Fund. The program will allow the Fund to repurchase in the open market up to 5% of its common shares outstanding as of February 22, 2010. The share repurchase program announced today has no time limit.
The share repurchase program is intended to enhance shareholder value, as repurchases made at a discount have the effect of increasing the net asset value per share of the Fund’s remaining shares.
The Fund will repurchase shares at a discount, in accordance with procedures approved by the Board and its Discount Management Committee. Subject to these procedures, the timing and amount of any shares repurchased will be determined by the Chairman of the Discount Management Committee and RCM Capital Management LLC, the Fund's investment manager, based on their evaluation of market conditions and other factors. There is no assurance that the Fund will purchase shares at any particular discount levels or in any particular amounts. Under certain conditions, regulatory requirements and other legal considerations may limit the Fund’s ability to repurchase shares. There is no assurance that the market price of the Fund’s shares, either absolutely or relative to net asset value, will increase as a result of any share repurchases. These repurchases may be commenced or suspended at any time or from time to time without prior notice. The Fund’s repurchase activity will be disclosed in its shareholder reports for the relevant fiscal periods.
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The Korea Fund, Inc. is a non-diversified, closed-end investment company that seeks long-term capital appreciation through investments in securities, primarily in equity securities, of Korean companies. Its shares are listed on the New York Stock Exchange under the symbol "KF."