The Korea Fund, Inc. Announces New Cash Dividend Distribution

The Korea Fund, Inc. Announces Cash Dividend Distribution

The Korea Fund, Inc. (NYSE:KF) has officially declared a cash dividend distribution, signaling a positive move for its investors. The Board of Directors has come together to announce a dividend of $0.454161 per share. This decision showcases the Fund's commitment to its shareholders and its underlying investment strategy.

Dividend Distribution Details

The distribution will be payable on January 6, 2025, to all shareholders of record as of December 27, 2024. This date serves as both the record date and the ex-dividend date. Investors can look forward to this payout, which is part of the Fund’s spillback distribution, as specified under Section 855 of the Internal Revenue Code.

Implications of the Dividend Announcement

The announcement comes with the understanding that the Fund has temporarily suspended its share repurchase program until the payment date of January 6, 2025. While this temporary suspension might raise some questions among investors, it is important to emphasize that the total amount of the dividend will remain unchanged.

Understanding Characterization for Tax Purposes

It's essential for shareholders to recognize that the tax implications of the dividend distribution may evolve. While the overall amount remains constant, the characterization for tax purposes may differ based on multiple factors, such as the types of investments held by the Fund and their performance. At the end of the fiscal year, the Fund will assess and provide detailed information on the allocations for tax characterizations.

The Importance of Accurate Information

The Fund aims to keep its investors well-informed about any changes or updates affecting their dividends. In January 2025, shareholders will receive Form 1099-DIV to clarify how this distribution should be treated for tax filings. Understanding these details is crucial as it impacts how one might report these distributions on their tax returns.

Profile of The Korea Fund, Inc.

The Korea Fund, Inc. operates as a closed-end investment company focusing on long-term capital appreciation. Its primary investment targets are equity securities trading on Korean stock exchanges, providing investors with a unique opportunity to tap into the dynamic growth of the Korean market. The Fund is publicly traded on the New York Stock Exchange under the symbol "KF," allowing for public participation and investment.

Investment Management and Risks

Under the guidance of JPMorgan Asset Management (Asia Pacific) Ltd, the Fund navigates various investment opportunities while considering international risks. Investing in closed-end funds carries inherent risks, particularly related to foreign markets. Investors should be aware of potential currency fluctuations, government regulations, and economic changes that can influence market volatility.

Monitoring the Fund's Performance

Investors often seek real-time updates regarding the Fund's performance. The daily New York Stock Exchange closing market price and net asset value (NAV) are available for review, ensuring that stakeholders can stay informed about their investments. Other statistics, including portfolio details and performance analysis, are available through the Fund’s official channels.

Conclusion and Future Perspectives

The ongoing developments related to the dividend distribution accentuate the Korea Fund’s commitment to its investors. As the fund prepares for the dividend payment and potential future investments, shareholders can take reassurance in the Fund's strategy and operational transparency. This news not only signals a steadfast approach towards fostering investor confidence but also highlights the ongoing potential within the Korean investment landscape.

Frequently Asked Questions

What is the amount of the declared dividend?

The declared dividend is $0.454161 per share.

When will the dividend be payable?

The dividend will be payable on January 6, 2025.

What is the record date for the dividend?

The record date for the dividend is December 27, 2024, which is also the ex-dividend date.

What tax implications should shareholders consider?

The characterization of the distributions may change based on investment performance, with detailed tax information provided via Form 1099-DIV in January 2025.

Who manages The Korea Fund, Inc.?

The fund is managed by JPMorgan Asset Management (Asia Pacific) Ltd.

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