The Board of Directors (the “Board”) of The Korea Fund, Inc. (NYSE: KF) (the “Fund”) announced on December 3, 2020 that it had adopted a policy (the “Tender Offer Policy”) pursuant to which the Board will cause the Fund to conduct an issuer tender offer for up to twenty-five percent (25%) of its then issued and outstanding shares of common stock on or before September 30, 2024, and thereafter on each third year anniversary of September 30, 2024, if the Fund’s total return investment performance measured on a net asset value basis does not equal or exceed the total return investment performance of the MSCI Korea 25/50 Index (the “Index”) during the period commencing April 1, 2021 and ending June 30, 2024 (the “Initial Tender Offer Measurement Period”), and for three-year testing periods thereafter.
The Board announced today that, based on the Fund’s internal records and publicly available information regarding the performance of the Index, the Fund’s provisional total return investment performance was marginally less than that of the Index during the Initial Tender Offer Measurement Period. The provisional figures indicate that over the Initial Tender Offer Measurement Period the Fund’s net asset value total return was -19.62% and the Fund’s Index total return was -19.30%, an underperformance of 0.32%. Following confirmation of these results as noted above, which is expected within ten business days, the Fund will conduct a tender offer with respect to the Initial Tender Offer Measurement Period in accordance with the Tender Offer Policy.