Shares

Value ($)

Common Stocks 80.8%

Consumer Discretionary 10.3%

Auto Components 5.5%

Hankook Tire Co., Ltd.

2,576,393

38,980,009

Hyundai Mobis

132,642

11,740,646

Nexen Tire Corp.

191,661

3,945,266

Samsung Climate Control Co., Ltd. (a)

560,224

4,797,307

59,463,228

Diversified Consumer Services 0.4%

MegaStudy Co., Ltd.*

59,500

4,390,850

Hotels Restaurants & Leisure 1.4%

Hana Tour Service, Inc. (b)

88,800

6,854,673

Hotel Shilla Co., Ltd. (b)

581,047

8,073,419

14,928,092

Internet & Catalog Retail 0.3%

GS Home Shopping, Inc.

38,044

3,602,355

Media 1.2%

Cheil Communications, Inc.

46,953

10,027,530

Yedang Entertainment Co., Ltd.*

360,584

3,340,115

13,367,645

Multiline Retail 1.2%

Taegu Department Store Co., Ltd. (a)

735,080

13,012,944

Textiles, Apparel & Luxury Goods 0.3%

BYC Co., Ltd. (a)

26,761

3,015,983

Consumer Staples 9.2%

Beverages 0.3%

Hite Brewery Co., Ltd. (b)

26,146

3,727,070

Food & Staples Retailing 3.1%

Shinsegae Co., Ltd.

72,864

33,222,264

Food Products 3.5%

CJ Corp.*(a) (b)

67,424

7,806,917

Crown Confectionary Co., Ltd. (a)

64,714

9,025,059

Nam Yang Dairy Products Co., Ltd.

22,611

15,638,732

Nhong Shim Co., Ltd. (b)

20,680

5,789,378

38,260,086

Personal Products 0.2%

Cosmax, Inc.

283,600

1,599,555

Tobacco 2.1%

KT&G Corp.

396,585

22,368,112

Energy 5.1%

Oil, Gas & Consumable Fuels

S-Oil Corp. (b)

503,401

38,651,415

SK Corp.

241,017

16,173,640

54,825,055

Financials 17.5%

Banks 7.2%

Industrial Bank of Korea

385,400

7,139,975

Jeonbuk Bank (a)

1,757,473

16,840,339

Kookmin Bank

560,638

48,412,442

Kookmin Bank (ADR)

68,312

5,842,042

78,234,798

Capital Markets 1.3%

Korea Investment Holdings Co., Ltd.

262,439

9,399,833

Samsung Securities Co., Ltd. (b)

89,300

4,779,333

14,179,166

Consumer Finance 0.9%

LG Card Co., Ltd.*

168,221

9,055,124

Insurance 8.1%

Korean Reinsurance Co.

865,426

9,397,122

Meritz Fire & Marine Insurance Co. Ltd. (a)

3,371,030

15,855,915

Samsung Fire & Marine Insurance Co., Ltd. (a)

474,810

62,796,506

88,049,543

Health Care 0.5%

Pharmaceuticals

Choongwae Pharma Corp.

1,799

59,992

Yuhan Corp.

34,679

5,692,981

5,752,973

Industrials 5.8%

Building Products 0.2%

Samwoo EMC Co., Ltd. (a)

510,926

1,966,718

Commercial Services & Supplies 1.5%

Insun ENT Co., Ltd. (c)

196,229

2,575,051

S1 Corp.

306,554

13,535,577

16,110,628

Construction & Engineering 0.2%

Samho International Co., Ltd.

141,088

2,439,562

Electrical Equipment 2.3%

Seoul Semiconductor Co., Ltd. (a) (b)

650,192

23,087,303

Wooree ETI Co., Ltd.* (b)

194,200

2,518,444

25,605,747

Machinery 0.0%

NEPES Corp.*

26

341

Road & Rail 1.6%

Korea Express Co., Ltd.*

219,344

17,157,415

Information Technology 20.3%

Electronic Equipment & Instruments 3.5%

Ace Digitech Co. Ltd.*

286,535

3,140,796

INTOPS Co., Ltd.

109,997

3,905,822

LG.Philips LCD Co., Ltd. (ADR)* (b)

300,247

6,815,607

Samsung SDI Co., Ltd.

142,119

11,555,580

SE Co., Ltd. (a) (c) (d)

636,950

2,058,484

SFA Engineering Corp. (a) (b)

315,573

10,425,991

37,902,280

Internet Software & Services 1.2%

Ahnlab, Inc. (b)

80,869

1,955,971

NHN Corp.*

34,115

10,533,656

12,489,627

Semiconductors & Semiconductor Equipment 15.6%

Phicom Corp. (a)

896,116

10,744,907

Phoenix PDE Co., Ltd.

582,100

2,480,335

Samsung Electronics Co., Ltd. (e)

230,350

149,362,392

Simm Tech Co., Ltd. (b)

739,583

7,330,367

169,918,001

Materials 9.1%

Chemicals 1.4%

LG Chemical Ltd. (b)

121,334

5,513,479

Samsung Fine Chemicals Co., Ltd. (b)

249,682

6,887,070

Youlchon Chemical Co., Ltd.

224,695

2,624,834

15,025,383

Metals & Mining 7.7%

Dongkuk Steel Mill Co., Ltd. (b)

673,185

13,337,599

Korea Zinc Co., Ltd. (b)

62,300

4,886,023

POSCO

254,977

65,738,718

83,962,340

Telecommunication Services 3.0%

Wireless Telecommunication Services

SK Telecom Co., Ltd.

165,724

32,834,366

Total Common Stocks (Cost $218,462,261)

876,467,251

Preferred Stocks 16.7%

Consumer Discretionary 6.7%

Automobiles

Hyundai Motor Co. (b)

841,120

45,016,715

Hyundai Motor Co. (2nd)

499,954

27,632,287

72,649,002

Consumer Staples 1.5%

Food Products

CJ Corp. *

176,578

11,704,017

CJ Corp. (2nd) *

34,073

3,247,386

CJ Corp. (3rd) (Convertible) *

20,126

1,843,571

16,794,974

Energy 0.6%

Oil, Gas & Consumable Fuels

S-Oil Corp.

105,626

6,196,667

Financials 3.0%

Capital Markets 0.6%

Daishin Securities Co., Ltd.

399,181

6,039,482

Insurance 2.4%

Samsung Fire & Marine Insurance Co., Ltd.

360,865

26,110,343

Information Technology 4.9%

Semiconductors & Semiconductor Equipment

Samsung Electronics Co., Ltd. (e)

103,764

53,131,525

Total Preferred Stocks (Cost $21,711,826)

180,921,993

Principal
Amount($)

Value ($)

Convertible Bond 0.0%

Consumer Staples

Haitai Confectionery Loan Certificates Zero Coupon, 11/28/2009 (c) (f) (g) (Cost $0)

8,119,549

7,457

Shares

Value ($)

Securities Lending Collateral 5.5%

Daily Assets Fund Institutional, 4.73% (h) (i)
(Cost $59,966,246)

59,966,245

59,966,245

Cash Equivalents 0.4%

Cash Management QP Trust, 4.64% (j)
(Cost $4,031,180)

4,031,180

4,031,180

% of
Net Assets

Value ($)

Total Investment Portfolio (Cost $ 304,171,513)

103.4

1,121,394,126

Other Assets and Liabilities, Net

(3.4)

(37,388,611)

Net Assets

100.0

1,084,005,515

For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.

*

Non-income producing security.

(a)

Affiliated issuer. An affiliated issuer is a company in which the Fund has ownership of at least 5% of the voting securities A summary of the Fund’s transactions during the nine months ended March 31, 2006 with companies which are or were affiliates is as follows:

Affiliate

Value at June 30, 2005 ($)

Common/ Preferred Shares

Total Purchase Cost ($)

Total Sales (Cost) ($)

Total Realized Gain/(Loss) ($)

Dividend Income ($)

Value at March, 31, 2006 ($)

Anycell **

-

-

-

2,020,774

(2,020,774)

-

-

BYC Co., Ltd.

2,257,028

26,761

-

836,312

168,994

16,536

3,015,983

CJ Corp.

7,380,024

67,424

-

2,167,455

1,737,353

83,324

7,806,917

Crown Confectionary Co., Ltd

14,702,465

64,714

-

3,813,645

(336,246)

53,316

9,025,059

Daeyang E&C ltd.

9,144,525

-

-

7,811,256

2,450,762

-

-

Interflex Co., Ltd.

13,148,793

-

-

9,730,664

(2,927,195)

55,921

-

Jeonbuk Bank

15,311,560

1,757,473

-

7,618,294

3,540,644

155,465

16,840,339

Meritz Fire & Marine Insurance Co.

12,983,002

3,371,030

-

416,362

314,241

288,639

15,855,915

Phicom Corp.

6,831,582

896,116

2,382,867

4,314,498

1,949,906

124,906

10,744,907

Samsung Climate Control Co., Ltd.

4,467,342

560,224

-

1,568,677

633,879

13,847

4,797,307

Samsung Fire & Marine Insurance Co., Ltd.

79,187,981

474,810

-

50,350,175

44,806,926

465,023

62,796,506

Samwoo EMC Co., Ltd.

2,995,292

510,926

-

1,152,123

476,082

63,141

1,966,718

SE Co., Ltd.

1,933,323

636,950

-

-

-

-

2,058,484

Seoul Semiconductor Co., Ltd.

29,385,634

650,192

-

8,544,110

4,014,409

187,488

23,087,303

SFA Engineering Co.

12,005,567

315,573

-

3,653,569

1,940,423

285,993

10,425,991

Sung Shin Cement **

5,232,964

-

-

5,076,794

194,047

92,416

-

Taegu Department Store Co., Ltd.

12,345,615

735,080

-

7,608,179

3,558,444

447,675

13,012,944

2,382,867

116,682,887

60,501,895

2,333,690

181,434,373

** Not an affiliate at 3/31/2006

(b)

All or a portion of these securities were on loan. The value of all securities loaned at March 31, 2006 amounted to $57,230,547 which is 5.3% of net assets.

(c)

Securities valued at fair value by management and approved in good faith following procedures approved by the Directors, amounted to $4,640,992 (0.4% of net assets at March 31, 2006). Their values have been estimated by management in the absence of readily ascertainable market values. However, because of the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the securities existed, and the difference could be material. The cost of these securities at March 31, 2006 aggregated $4,320,461. The securities may also have certain restrictions as to resale.

(d)

The Fund may purchase securities that are subject to legal or contractual restrictions on resale ("restricted securities"). Restricted securities are securities which have not been registered with the Securities and Exchange Commission under the Securities Act of 1933. The fund may be unable to sell a restricted security and it may be more difficult to determine a market value for a restricted security. Moreover, if adverse market conditions were to develop during the period between the Fund's decision to sell a restricted security and the point at which the Fund is permitted or able to sell such security, the Fund might obtain a price less favorable than the price that prevailed when it decided to sell. This investment practice, therefore, could have the effect of increasing the level of illiquidity of the Fund. The future value of these securities is uncertain and there may be changes in the estimated value of these securities.

A Shareholder of SE Co. Ltd. has given the Fund a put option at cost, payable on demand until it has an initial public offering. Information concerning the private placement security at March 31, 2006 is as follows:

Restricted

Acquisition

As a % of

Securities

Date

Cost ($)

Value ($)

Net Assets

SE Co., Ltd.

12/22/2000

1,616,637

2,058,484

0.2

(e)

At March 31, 2006, 18.7% of the Fund's net assets is invested in Samsung Electronics Co., Ltd.

(f)

Company in restructuring process, principal only subject to repayment.

(g)

Principal amount stated in Korean Won.

(h)

Daily Assets Fund Institutional, an affiliated fund, is managed by Deutsche Asset Management, Inc. The rate shown is the annualized seven-day yield at period end.

(i)

Represents collateral held in connection with securities lending.

(j)

Cash Management QP Trust, an affiliated fund, is managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.

ADR: American Depositary Receipt

Registrant:

The Korea Fund, Inc.

By:

/s/Michael Colon

Michael Colon

Date:

May 19, 2006

Registrant:

The Korea Fund, Inc.

By:

/s/Michael Colon

Michael Colon

Date:

May 19, 2006

By:

/s/Paul Schubert

Paul Schubert