NEW YORK, Dec. 22, 2008 (GLOBE NEWSWIRE) -- The Board of Directors of The Korea Fund, Inc. (NYSE:KF) (the "Fund") announced today that it has declared a capital gain distribution of $220.3 million ($90.30 per share after the 1-for-10 reverse stock split, which was effective earlier today). On a post-split, per share basis, the distribution is comprised of long-term capital gains of $85.60 and short-term capital gains of $4.70. The distribution is inclusive of realized capital gains incurred during for the fiscal year ended June 30, 2008.
The distribution will be payable on January 29, 2009 to shareholders of record on December 31, 2008 (the "Record Date") with an ex-dividend date of December 29, 2008.
The distribution will be paid in the Fund's common stock priced at the market price of the Fund's common stock determined as of the close of the New York Stock Exchange ("NYSE") on January 26, 2009 (the "Pricing Date"). The distribution may be reduced if the number of shares to be issued on the payable date, together with the Fund's outstanding shares on the payable date, exceeds the Fund's authorized share limit. Any reduction in the distribution will likely subject the Fund to a Fund-level tax on undistributed amounts.
Stockholders may, however, request that their distribution be paid in cash in lieu of common stock. Such requests must be for the entire distribution payable to the stockholder; however, the aggregate amount of cash distributions to all stockholders will be capped, or limited, to 20% of the aggregate dollar amount of the total distribution being paid by the Fund (excluding cash paid in lieu of fractional shares). Thus, if the cash elections would cause the total amount of cash to be distributed by the Fund to exceed the 20% cap, each stockholder who requests cash will receive a pro rata portion of the cash distributed to all stockholders who have made cash elections. Such pro rata portion will be calculated based on the total amount of the distribution to be paid to a stockholder requesting cash relative to the total amount of the distribution to be paid to all stockholders requesting cash. Stockholders who elect cash and do not receive 100% of their distribution in cash will receive the balance in common stock issued at the market price on the Pricing Date. Stockholders not electing cash will receive all of their distribution in common stock. A stockholder will receive cash in lieu of a fraction of a share unless the stockholder holds his or her shares directly with the Fund at the transfer agent and participates in the Fund's dividend reinvestment plan.
Stockholders will receive a written notice of the planned distribution with instructions for how to elect to receive the distribution in cash, which will be mailed following the Record Date.
