Investment Portfolio

as of September 30, 2006 (Unaudited)

Shares

Value ($)

Common Stocks 86.0%

Consumer Discretionary 11.5%

Auto Components 5.1%

Hankook Tire Co., Ltd.

2,576,393

33,898,117

Hyundai Mobis

132,642

13,639,172

Nexen Tire Corp.

191,661

3,230,640

Samsung Climate Control Co., Ltd. (a)

560,224

4,256,814

55,024,743

Diversified Consumer Services 0.6%

MegaStudy Co., Ltd. (b)

59,500

6,728,137

Hotels Restaurants & Leisure 1.4%

Hana Tour Service, Inc. (b)

88,800

6,296,940

Hotel Shilla Co., Ltd. (b)

581,047

9,057,272

15,354,212

Household Durables 1.2%

Humax Co., Ltd. (b)

215,868

6,011,225

Woongjin Coway Co., Ltd. (b)

269,700

6,583,958

12,595,183

Internet & Catalog Retail 0.3%

GS Home Shopping, Inc.

38,044

3,063,623

Media 1.5%

Cheil Communications, Inc.

46,953

10,519,457

ON*Media Corp.*

826,500

6,184,010

16,703,467

Multiline Retail 1.0%

Taegu Department Store Co., Ltd. (a)

735,080

11,341,789

Textiles, Apparel & Luxury Goods 0.4%

BYC Co., Ltd.

26,761

4,411,853

Consumer Staples 10.0%

Beverages 0.6%

Hite Brewery Co., Ltd. (b)

50,146

6,200,351

Food & Staples Retailing 3.5%

Shinsegae Co., Ltd.

72,864

37,731,424

Food Products 3.4%

CJ Corp. (b)

67,424

7,446,032

Crown Confectionary Co., Ltd. (b)

64,714

7,830,651

Nam Yang Dairy Products Co., Ltd.

21,611

16,215,387

Nhong Shim Co., Ltd. (b)

20,680

5,900,766

37,392,836

Personal Products 0.3%

Cosmax, Inc.

507,600

2,698,260

Tobacco 2.2%

KT&G Corp.

396,585

24,098,956

Energy 3.6%

Oil, Gas & Consumable Fuels

S-Oil Corp. (b)

347,601

23,252,991

SK Corp.

241,017

16,021,104

39,274,095

Financials 19.3%

Capital Markets 1.5%

Korea Investment Holdings Co., Ltd.

262,439

11,357,334

Samsung Securities Co., Ltd.

89,300

5,077,242

16,434,576

Commercial Banks 8.1%

Hana Financial Group, Inc.

170,700

7,811,160

Industrial Bank of Korea

845,100

14,468,291

Jeonbuk Bank (b)

1,757,473

15,972,806

Kookmin Bank

594,638

46,879,783

Kookmin Bank (ADR)

40,412

3,153,348

88,285,388

Consumer Finance 1.0%

LG Card Co., Ltd.* (b)

168,221

10,702,144

Insurance 8.7%

Korean Reinsurance Co.

865,426

10,700,644

Meritz Fire & Marine Insurance Co., Ltd. (b)

3,371,030

22,194,469

Samsung Fire & Marine Insurance Co., Ltd.

399,710

61,461,353

94,356,466

Health Care 0.5%

Pharmaceuticals

Choongwae Pharma Corp.

1,799

73,196

Yuhan Corp. (b)

34,679

5,387,385

5,460,581

Industrials 10.4%

Airlines 1.1%

Korean Air Lines Co., Ltd.

324,800

11,910,763

Building Products 0.2%

Samwoo EMC Co., Ltd.

510,926

2,024,806

Commercial Services & Supplies 1.1%

S1 Corp.

306,554

11,938,193

Construction & Engineering 2.2%

GS Engineering & Construction Corp.

153,500

10,738,917

Hyundai Engineering & Construction Co., Ltd.*

206,400

11,102,520

Samho International Co., Ltd. (b)

141,088

1,975,605

23,817,042

Electrical Equipment 1.9%

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

1,292,915

21,451,800

Industrial Conglomerates 1.1%

Samsung Techwin Co., Ltd.

289,200

11,858,346

Machinery 0.5%

JVM Co., Ltd.*

136,039

5,146,839

NEPES Corp.*

26

249

5,147,088

Road & Rail 1.5%

Korea Express Co., Ltd.*

219,344

16,110,339

Trading Companies & Distributors 0.8%

Samsung Corp.

288,100

9,133,950

Information Technology 19.3%

Electronic Equipment & Instruments 1.6%

Ace Digitech Co., Ltd.* (b)

187,935

3,088,390

INTOPS Co., Ltd.

82,497

2,528,310

KH Vatec Co., Ltd.* (b)

96,631

1,444,997

SE Co., Ltd. (c)

636,950

0

SFA Engineering Corp. (b)

315,573

10,255,081

17,316,778

Internet Software & Services 1.8%

Ahnlab, Inc. (b)

80,869

1,683,613

NHN Corp.

170,445

17,886,593

19,570,206

Semiconductors & Semiconductor Equipment 15.9%

Phoenix PDE Co., Ltd. (b)

582,100

3,364,953

Samsung Electronics Co., Ltd. (d)

230,350

161,640,581

Simm Tech Co., Ltd. (b)

739,583

8,284,893

173,290,427

Materials 7.0%

Chemicals 0.7%

LG Chem Ltd.

121,334

4,821,304

Youlchon Chemical Co., Ltd. (b)

224,695

2,184,617

7,005,921

Metals & Mining 6.3%

Dongkuk Steel Mill Co., Ltd.

381,185

7,190,650

Korea Zinc Co., Ltd. (b)

62,300

5,629,220

POSCO

215,697

55,847,572

68,667,442

Telecommunication Services 4.4%

Diversified Telecommunication Services 0.7%

LG Dacom Corp.

328,200

7,942,700

Wireless Telecommunication Services 3.7%

SK Telecom Co., Ltd.

187,154

39,853,666

Total Common Stocks (Cost $300,877,494)

934,897,551

Preferred Stocks 13.4%

Consumer Discretionary 6.3%

Automobiles

Hyundai Motor Co. (b)

841,120

42,667,117

Hyundai Motor Co. (2nd)

499,954

26,100,637

68,767,754

Consumer Staples 1.4%

Food Products

CJ Corp.

176,578

9,964,877

CJ Corp. (2nd)

34,073

3,312,778

CJ Corp. (3rd) (Convertible)

20,126

1,935,499

15,213,154

Energy 0.5%

Oil, Gas & Consumable Fuels

S-Oil Corp.

105,626

5,570,132

Financials 3.0%

Capital Markets 0.5%

Daishin Securities Co., Ltd.

399,181

5,800,517

Insurance 2.5%

Samsung Fire & Marine Insurance Co., Ltd.

360,865

26,886,111

Information Technology 2.2%

Semiconductors & Semiconductor Equipment

Samsung Electronics Co., Ltd. (d)

44,464

23,353,879

Total Preferred Stocks (Cost $20,486,278)

145,591,547

Principal Amount

Value ($)

Convertible Bond 0.0%

Consumer Staples

Haitai Confectionery Loan Certificates Zero Coupon, 11/28/2009* (e) (Cost $0) Won

6,869,719

6,647

Shares

Value ($)

Securities Lending Collateral 8.0%

Daily Assets Fund Institutional, 5.31% (f) (g)
(Cost $87,611,494)

87,611,494

87,611,494

Cash Equivalents 0.5%

Cash Management QP Trust, 5.34% (h) (Cost $5,472,815)

5,472,815

5,472,815

% of

Net Assets

Value ($)

Total Investment Portfolio (Cost $ 414,448,081)

107.9

1,173,580,054

Other Assets and Liabilities, Net

(7.9)

(86,162,919)

Net Assets

100.0

1,087,417,135

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 three months ended September 30, 2006 with companies which are or were affiliates is as follows:

Affiliate

Common/ Preferred Shares

Total Purchase Cost ($)

Total Sales (Cost) ($)

Total Realized Gain/(Loss) ($)

Dividend Income ($)

Value at September 30, 2006 ($)

Samsung Climate Control Co., Ltd.

560,224

-

-

-

-

4,256,814

Seoul Semiconductor Co., Ltd.

1,292,915

-

-

-

-

21,451,800

Taegu Department Store Co., Ltd.

735,080

-

-

-

256,294

11,341,789

-

-

-

256,294

37,050,403

(b)

All or a portion of these securities were on loan. The value of all securities loaned at September 30, 2006 amounted to $83,421,591 which is 7.7% of net assets.

(c)

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.

Restricted

Acquisition

As a % of

Securities

Date

Cost ($)

Value ($)

Net Assets

SE Co., Ltd.

12/22/2000

1,616,637

0

0

(d)

At September 30, 2006, 17.0% of the Fund’s investment portfolio is invested in Samsung Electronics Co., Ltd.

(e)

Company in restructuring process, principal only subject to repayment.

(f)

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.

(g)

Represents collateral held in connection with securities lending.

(h)

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

Currency Abbreviation:

Won Korean Won

Registrant:

The Korea Fund, Inc.

By:

/s/Michael G. Clark

Michael G. Clark

Date:

November 21, 2006

Registrant:

The Korea Fund, Inc.

By:

/s/Michael G. Clark

Michael G. Clark

Date:

November 21, 2006

By:

/s/Paul Schubert

Paul Schubert