(Source: Business Wire)The Korea Fund, Inc. (the "Fund") (NYSE: KF) is issuing this press release to make note of the different methodologies used in computing performance reported by the Fund compared with performance reported by certain third party service providers due to the large capital gain distribution paid in January, 2009. On January 29, 2009, the Fund paid a capital gain distribution of $90.30 per share, paid 80% in Fund shares and 20% in cash. The distribution was declared on December 22, 2008 and had an ex-dividend date of December 29, 2008. The date for determining the price at which shares would be issued in the distribution was January 26, 2009 (the "Pricing Date").

The Fund recorded the distribution on the ex-dividend date in December, and recorded on each date between the ex-dividend date and the Pricing Date the estimated number of Fund shares to be issued for the 80% of the distribution payable in shares based on that day's market price of the Fund's shares. This estimated number of shares was used to calculate the Fund's daily net asset value (NAV) reported during this period (including December 31, 2008). Due to the significant decrease in the Fund's market price during the period from December 29, 2008 to January 26, 2009, the estimated number of shares projected to be issued on the payable date changed significantly. At December 31, 2008, based on the Fund's market price of $34.42, 5,117,844 shares were projected to be issued in connection with the distribution. On the payable date, January 29, 2009, the Fund actually issued 8,007,555 shares based on the market price of $21.99 on the Pricing Date. This difference in market price ($34.42 versus $21.99) and the resulting share difference (5,117,844 projected versus 8,007,555 actual) caused the Fund's performance for periods beginning December 31, 2008, calculated using the reported NAV on December 31, 2008, to not be reflective of the performance of the Fund's investment portfolio during the applicable period(s). Consequently, in order to calculate a total return figure that is representative, the Fund has adjusted its NAV for purposes of calculating performance by maintaining the same number of shares from the ex-dividend date until the Pricing Date. In short, this adjusted NAV has been calculated based on the actual number of shares outstanding on each date between the ex-dividend date and the Pricing Date, and then, starting on the Pricing Date (i.e., the date on which the number of shares to be issued in the distribution became known with certainty), the adjusted NAV has been calculated based on the total shares outstanding following the January 29, 2009 distribution.