February 28, 2012 at 16:00 PM EST
The Korea Fund, Inc. Reports Results for the Fiscal Quarter and Six Months Ended December 31, 2011 Announces Clarification of New Share Repurchase Program Announces New Fund President Effective April 1, 2012

The Korea Fund, Inc. (the "Fund") (NYSE: KF), a non-diversified, closed-end investment company, which seeks long-term capital appreciation through investment in securities, primarily equity securities, of Korean companies, today announced its results for the fiscal quarter and six months ended December 31, 2011, clarification of new share repurchase program and new fund President effective April 1, 2012.

At December 31,

2011

2010

Net Assets $384,343,753 $495,388,243
Shares Outstanding * 9,888,877 10,205,577
Net Asset Value ("NAV") $38.87 $48.54
Market Price $35.75 $44.11
Discount to NAV (8.03)% (9.13)%

Quarter ended December 31,

2011

2010

Net Investment Income $1,912,193 $1,824,626
Per Share $0.19 $0.18
Net Realized and Change in Unrealized Gain $19,171,788 $27,172,730
Per Share $1.92 $2.66

Six Months ended December 31,

2011

2010

Net Investment Income $379,704 $1,127,631
Per Share $0.04 $0.11
Net Realized and Change in Unrealized Gain (Loss) $(103,878,325) $103,957,418
Per Share $(10.38) $10.19

* On October 31, 2011, the Fund announced a new share repurchase program commencing November 1, 2011. Under the new program, the Fund is authorized to repurchase in each twelve month period ended October 31 up to 10% of its common shares outstanding as of October 31 the prior year. For the quarter and six months ended December 31, 2011, the Fund repurchased 98,200 shares and 169,100 shares, respectively.

Clarification of New Share Repurchase Program

The Board of Directors today announced a clarification to the share repurchase program that commenced on November 1, 2011. Under that program, the Fund will repurchase its common shares in the open market on any day that the Fund’s shares are trading at a discount of 8% or more from NAV the prior day and there is a daily average discount of 8% or more from NAV over the 5-day period ending the prior day (the “Discount Threshold”). Additionally, on each day that shares are repurchased, the Fund will repurchase its shares to the maximum extent permitted by law (unless the Fund’s investment manager determines that such a repurchase would be detrimental to the Fund and its shareholders).

Because the Fund’s discount has periodically narrowed below 8% on the day following the day the Discount Threshold was exceeded, the parameters above have resulted in the Fund repurchasing shares at times when the Fund’s discount (measured against the prior day’s closing NAV) was narrower than 8%. The Board’s intent was for the Fund to repurchase shares only at such times as the Fund’s discount exceeds 8%. Consequently, the Board is clarifying that, on a day that shares are repurchased, in addition to the limits set forth above, the Fund will repurchase shares only at such times that the market price represents a discount of 8% or more from the Fund’s closing NAV on the prior day.

From November 1, 2011 to February 22, 2012, the Fund’s average discount was 8.61%, and the Fund repurchased 303,650 shares, representing 3.04% of the shares outstanding at October 31, 2011. Under the program, the Fund is authorized to repurchase in each twelve month period ended October 31 up to 10% of its common shares outstanding as of October 31 the prior year. For example, for the year November 1, 2011 to October 31, 2012, the Fund may repurchase up to 10% of its common shares outstanding as of October 31, 2011.

There is no assurance that the market price of the Fund’s shares, either absolutely or relative to NAV, will increase as a result of any share repurchases. These repurchases may be 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.

New Fund President

Robert Goldstein has announced his resignation as President of the Fund effective March 31, 2012. Christian Pachtner will assume the role of Fund President on April 1, 2012.

RCM Capital Management LLC and RCM Asia Pacific Limited are the Fund's investment manager and sub-adviser, respectively.

Additional risks are associated with international investing, such as currency fluctuation, government regulations, economic changes and differences in liquidity, which may increase the volatility of an investment in the Fund. Foreign security markets generally exhibit greater price volatility and are less liquid than the U.S. market. Additionally, this Fund focuses its investments in certain geographical regions, thereby increasing its vulnerability to developments in that region. All of these factors potentially subject the Fund's shares to greater price volatility. The NAV of the Fund will fluctuate with the value of the underlying securities. Closed-end funds trade on their market value, not NAV, and closed-end funds often trade at a discount to their NAV.

The Fund’s daily New York Stock Exchange closing price and NAV per share, as well as other information, including updated portfolio statistics and performance are available at http://www.thekoreafund.com or by calling the Fund’s shareholder servicing agent at (800) 254-5197.

The financial information contained herein is solely based upon the data available at the time of publication of this press release, and there is no assurance that any future results will be the same or similar to what is reported herein. Information that was obtained from third party sources we believe to be reliable is not guaranteed as to its accuracy or completeness. This press release contains no recommendations to buy or sell any specific securities and should not be considered investment advice of any kind. Past performance is no guarantee of future results and the investment returns generated by the Fund will fluctuate. There can be no assurance the Fund will meet its stated objective. In making any investment decision, individuals should utilize other information sources and the advice of their own professional adviser.

Contacts:

The Korea Fund, Inc.
Financial Advisors: 800-628-1237
Shareholders: 800-254-5197
Media Relations: 212-739-3501
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