Korea Asia Fund Ld

Final Results

Korea Asia Fund Ld
20 July 2000


                      The Korea Asia Fund Limited

CHAIRMAN'S STATEMENT

Performance Highlights

In the year to 31 March 2000, shareholders' funds increased by US$181.8 million
to US$363.2 million resulting in all increase in net asset value per share of
100.2%. Over the same period the company's benchmark, the KOSPI, rose by 54.1%
in U.S. dollar terms. At the same time, the share price rose by 74.50%. This has
resulted in the discount widening from 19.68% to 29.92%.

Corporate Developments

* For the year ended 31 March 1999, the company has applied to the Inland
Revenue for investment trust status under Section 842 of the Income and
Corporation Taxes Act 1988 (as amended by Section 117 of the Finance Act 1988).
It has not yet received a decision. It is probable that investment trust status
will be refused. The reason for this is that because the company is incorporated
and registered in the Cayman Islands, it would have been required to pay a
dividend in order to qualify as an investment trust. The board considered the
payment of a dividend to be inappropriate in view of the losses carried forward
for past years in the Revenue Reserve Account. If the company had been
incorporated in the U.K. it would not have been allowed to pay a dividend and
would have qualified still as an investment trust. Since the company had
substantial capital losses during the year ended 31 March 1999 it would not in
any event be required to pay corporation tax, and as such the failure to qualify
as an investment trust for that year has no adverse tax consequences. For the
year ended 31 March 2000 under the regulations of Section 842, the company is
not required to pay a dividend and is expected to qualify as an investment
trust.

* At the Extraordinary General Meeting on 27 March 2000, the shareholders gave
the directors the authority to repurchase the company's shares for cancellation.
We have initiated a policy of buying in your company's shares when they are at a
substantial discount to net asset value. So far we have purchased 477,500 shares
at a cost of US$1,593,394 and at an average price of US$3.34 per share. The
directors will recommend at our AGM that the authority to repurchase our shares
be renewed.

* For the implementation of the repurchase of the company's shares together with
assistance with other corporate matters, the board has appointed HSBC Investment
Bank plc as broker to the Fund in succession to Merrill Lynch International.

* With respect to gearing, your board regularly considers its use but to date no
facility has been put in place in view of the perceived volatility of the
market.

* Following discussions with The Korea Asia Fund Management Co., Limited
('KAFM'), agreement has been reached to eliminate the clause from the original
agreement which stipulates that the role of senior fund manager would be limited
to a period of two years and would alternate between the two major shareholders
of KAFM. Your board believes that the removal of this clause will give greater
consistency to the management, and therefore performance of the Fund going
forward.

* The board has decided to continue the company's membership of the Association
of Investment Trust Companies ('AlTC'). However, whilst welcoming the AITC's
generic marketing campaign to increase the awareness of investment trusts as a
suitable vehicle for private investors, the board has decided not to participate
in this campaign in view of the IDR structure of the company's share capital and
the institutional profile of the shareholders. Your board continues to review
and implement other measures designed to increase the awareness of the company
with prospective shareholders.

* During the course of the year there were a number of changes in the
composition of the board. Following the resignation of Mr. Kevin Gregory in June
1999, the board appointed Mr. Bryce McDonnell in October 1999. We would like to
thank Mr. Gregory for his valuable services and welcome Mr. McDonnell who is the
Global Chief Investment Officer of HSBC Asset Management group of companies.
HSBC Asset Management (Hong Kong) Limited provides administrative services to
the company. Mr. Succ-Young Kim was appointed to the board as an independent
director in October 1999.  Mr. Kim is employed by Kexim Bank UK Ltd. and has
brought his extensive knowledge of the Korean corporate world to the company.
Finally. Mr. Ho Young Park resigned in January 2000 and we thank him sincerely
for his services.

* I have been chairman of your company since incorporation on 27 July 1990 and
have decided that the time has come to hand over the chairmanship. Accordingly,
I will be resigning as chairman and as a director of the company at the
conclusion of the Annual General Meeting and am pleased to be able to
report that the board has appointed the Earl of Cromer as chairman with effect
from that date. Lord Cromer has been a director of the company since January
1996 and has considerable knowledge and experience of both Korea and the
investment trust sector.

Outlook

Although there are short-term concerns over the effect of increasing interest
rates in the US, and the continuing corporate restructuring process in Korea,
together with the particular circumstances of liquidity problems in the local
investment trust companies, the longer-term outlook is favourable. This is due
to improving corporate earnings, and continuing economic growth. Gross Domestic
Product growth for the year 2000 is estimated at around 7-8%, which follows
10.7% in 1999. The main components of growth are likely to be building up of
inventories, the strength of exports, and continuing facilities investment.
Politically, improving relations between North and South Korea should improve
country risk. However, there are many issues still to be tackled and the
benefits will only emerge over time.



The Korea Asia Fund Limited

(Incorporated in the Cayman Islands)

Announcement of 1999/2000 Results

The Board of directors is pleased to announce the audited results of the company
for the year ended 31 March 2000.

STATEMENT OF TOTAL RETURN

                          
                                        For the year ended           
                       Notes              31 March 2000 
                
                                 Revenue          Capital             Total     
                          
                                   USD              USD                USD      

Gains on investments                 0        181,125,703         181,125,703   
Exchange gains/(losses)        (24,343)           609,125             584,782  
Income                       4,291,627                  0           4,291,627  
Investment management fees  (3,056,737)                 0          (3,056,737) 
Other expenses                (577,356)                 0            (577,356)  
Return on ordinary 
 activities before 
 tax                           633,191        181,734,828         182,368,019  
Tax on ordinary 
 activities             1     (623,016)                 0            (623,016)  
Return on ordinary 
 activities after 
 tax for the 
 financial year and
 attributable to 
 equity shareholders
 transferred to 
 reserves                       10,175        181,734,828         181,745,003 

Return per ordinary 
 share                  2       0.0001             2.4938              2.4939   


                          
                                        For the year ended           
                       Notes              31 March 1999 
                
                                 Revenue          Capital             Total     
                          
                                   USD              USD                USD      

Gains on investments                 0         47,155,510           4,155,510
Exchange gains/(losses)        138,702            233,841             372,543
Income                       2,681,853                  0           2,681,853
Investment management fees  (1,358,671)                 0          (1,358,671)
Other expenses                (567,768)                 0            (567 768)

Return on ordinary 
 activities before 
 tax                           894,116         47,389 351          48,283,467
Tax on ordinary 
 activities             1     (321,339)                 0            (321,339)

Return on ordinary 
 activities after 
 tax for the 
 financial year and
 attributable to 
 equity shareholders
 transferred to 
 reserves                      572,777         47,389,351          47,962,128

Return per ordinary 
 share                  2       0.0078             0.6503              0.6581



(1) Taxation represents Korean withholding tax on dividends at 15% and at rates 
   varying between 10% and 27.50% on interest received.
(2) The calculation of return per ordinary share is based on the net revenue
    gain after taxation for the year of USD10,175 and capital gain of           
   USD181,734,828 (1999: revenue gain of USD572,777 and capital gain of         
  USD47,389,351) and on the outstanding number of 72,875,000 ordinary shares    
 in issue.


BALANCE SHEET
                           As at 31 March 2000        As at 31 March 1999
                                           US$                        US$

Fixed assets
 investment                        335,515,336                175,395,394

Current assets
 Debtors                            19,411,977                  1,333,125
 Cash at bank                       10,032,321                  6,176,213
                                    29,444,298                  7,509,338

Creditors: amounts falling 
due within one year                  1,772,848                  1,462,949

Net current assets                  27,671,450                  6,046,389

Net assets                         363,186,786                181,441,783

Capital and reserves
 Called-up share capital               728,750                    728,750
 Share premium account             197,547,000                197,547,000
 Reserves
  Capital reserve - realised        59,422,699                (18,379,885)
  Capital reserve - unrealised      108,501,595                  4,569,35l
 Revenue reserve                    (3,013,258)                (3,023,433)

Total shareholders' funds          363,186,786                181,441,783
Net asset value per ordinary 
share                                     4.98                       2.49


DIVIDEND

No dividend is recommended.

DIRECTORS' INTERESTS

The following directors held a beneficial interest in the ordinary shares in the
share capital of the company.

                               As at 31 March 2000     As at 31 March 1999
Hon RFJ Carington                            5,000                   5,000
BD McDonnell                                10,000                  10,000


Save as disclosed herein, no directors or their families had an interest in the
share capital of the company during the year. The directors have also confirmed
that no rights to subscribe for equity or debt securities of the company were
granted to or exercised by the directors of the company during the year.

This position had not changed as at 19 July 2000.

SHAREHOLDERS

As at 19 July 2000, the company had not been notified by any person, not being a
director of the company, of any interest in the share capital of the company
required to be recorded in the register of substantial shareholder's interests.

The following members held interests in the issued shares of the company as
shown below as at 31 March 2000 in a nominee capacity in the normal course of
their business as depositories.

Chase Manhattan Bank Luxembourg, S.A.                       72,473,500 shares
CITIVIC Nominees Limited (formerly MGTB Nominees Limited)      396,500 shares

SHARE REPURCHASES

The company sought and received, at an extraordinary general meeting of the
members of the company held on 27 March 2000, authority to buy back shares in
the company.  However, during the year ended 31 March 2000, the company did not
purchase, sell or redeem any of its own shares.

NOTICE OF ANNUAL GENERAL MEETING

The forthcoming annual general meeting of the members of the company will be
held at 8 Salisbury Square, London EC4V 8BB on Wednesday, 27 September 2000 at
12:00 noon.

19 July 2000                                                   Rupert Carington
                                                                       Chairman