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Korea Equity Fund, Inc.


Fund Highlights - July 31, 2010
(Unaudited)

Key Statistics

Net Assets   $120,784,741
Net Asset Value per Share   $10.87
Closing NYSE Market Price   $10.12
Percentage Change in Net Asset Value per Share*   2.9%
Percentage Change in NYSE Market Price*   9.4%

*From January 1, 2010 to July 31, 2010. Includes reinvestment of any income dividends and capital gain distributions. Changes in currency rates have influenced the Fund's performance. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.


Market Index**

    Won
  U.S. $
Korea Composite Stock Price Index   4.5%   3.1%

**From January 1, 2010 to July 31, 2010.


Average Annual Total Return***

    Return
One Year Ending 7/31/10   20.0%
Three Years Ending 7/31/10   (10.6%)
Five Years Ending 7/31/10   6.2%
Ten Years Ending 7/31/10   8.7%
Since Inception (12/03/93 to 7/31/10)   0.1%
   

***Reflects the percentage change in net asset value per share and includes reinvestment of any income dividends and capital gain distributions. Changes in currency rates have influenced the Fund's performance. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.


Asset Allocation

Korea Stocks 98.0
Other Assets Less Liabilities, Net   2.0
   
Total Investments   100
 
   
TOTAL   100
 

The asset allocation reflects the Fund's investments as of July 31, 2010, and may not be representative of the Fund's current or future holdings.


Industry Diversification

    % of
Net Assets

Services   20.1
Consumer Electronics   17.7
Automotive Equipment and Parts   16.4
Banking and Financial Services   11.8
Iron and Steel   7.4
Retail   5.4
Miscellaneous Manufacturing   5.2
 
    % of
Net Assets

Chemicals and Pharmaceuticals   4.6
Food and Beverages   3.3
Electric   2.3
Wholesale   2.2
Telecommunications   0.9
Oil and Gas   0.7
 

The industry diversification reflects the Fund's investments as of July 31, 2010 and may not be representative of the Fund's current or future holdings.


Ten Largest Equity Holdings By Market Value

    Market
Value

  % of
Net Assets

Samsung Electronics Co., Ltd.   $17,369,030   14.4
Hyundai Mobis   12,055,083   10.0
POSCO   6,927,726   5.7
Hyundai Motor Company   5,928,064   4.9
Samsung Engineering Co., Ltd.   4,742,129   3.9
Shinhan Financial Group Co., Ltd.   4,099,670   3.4
KB Financial Group Co., Inc.   3,687,012   3.1
LG Chem Ltd.   3,474,285   2.9
Lotte Shopping Co., Ltd.   3,370,653   2.8
Samsung Card Co., Ltd.   2,875,560   2.4
         

The ten largest equity holdings by market value reflect the Fund's investments as of July 31, 2010 and may not be representative of the Fund's current or future holdings.

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