Korea Asia Fund Ld

Result of Board Meeting

Korea Asia Fund Ld
26 September 2000

Letter from KPMG

Re  Korea Asia Fund Limited

Please be advised that at the board meeting of the above mentioned Company held
on 25 September 2000, the announcement below, about the Company's investment
trust status for the year ended 31 March 1999 was approved by the Board of

The Board of the Korea Asia Fund Limited (the 'Fund') announces that, as
anticipated in the Fund's annual report for the year ended 31 March 2000, the
Inland Revenue has ruled that the Fund did not qualify as an approved investment
trust for the year ended 31 March 1999.

The Inland Revenue have confirmed in writing to the Fund's Auditors that there
is no corporation tax liability for the year ended 31 March 1999 and that, given
that the Fund had capital gains losses for the period, there are no practical
consequences as to the failure to qualify.

The Board confirms that the Fund intends to seek approval as an investment trust
in respect of the year ended 31 March 2000 and that it is anticipated that the
Fund will qualify for this period.

Contact details:

Steve Martin, KPMG (Telephone: 01227 733 102)