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Korea Bond Fund PLC (KBF)

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Wednesday 17 May, 2000

Korea Bond Fund PLC

Interim Results

Korea Bond Fund PLC
16 May 2000


KOREA BOND FUND PLC                                    

General Information

The following  information is  derived  from  and  should  be  read  in
conjunction with the full text and definitions section of the Prospectus.

Korea Bond Fund plc (the 'Company') was incorporated on 31 May, 1996 under  
the laws of the Republic of Ireland, and is listed on the London Stock Exchange.

The Company is a closed-ended investment Company with variable capital,
authorised by the Central Bank of Ireland (the 'Bank'), pursuant to the
provisions of Part XIII of the Companies Act, 1990.

The Company  has  been authorised as a closed-ended investment  company,
which markets its Shares solely to professional investors.  Accordingly,
some of the requirements of the Bank which are deemed necessary for  the
protection of retail investors, in particular the conditions set down  by
the  Bank  in  relation to investment and leverage, do not apply  to  the
Company.

INVESTMENT OBJECTIVES AND POLICIES

The principal investment objective is to achieve a high level of income,
initially  through  the acquisition of a portfolio  of  five  year  bonds
issued by Korean corporations. If however, circumstances develop and  the
Company disposes of this portfolio with the proceeds being reinvested  in
other Korean debt securities, a secondary investment objective  will  be
capital appreciation.

The Company is  required  to  invest,  unless  the  Investment  Manager
considers a higher level of liquidity to be appropriate on a  temporary
basis,  80 per  cent or more of the Net Asset Value of  the  Company  in
Korean debt securities (including equity related debt instruments such as
convertible  bonds)  issued  by national and local  governmental  bodies,
public  sector,   corporations,  financial   institution   and   private
corporations. This policy, which is required under the license granted to
the  Company, the Ministry of Finance and Economy Korea (the  'License'),
may under  certain circumstances not be fully consistent with  otherwise
prudent  investment  policies. Until such time as the  Company  shall  be
permitted  to  invest  in unlisted bonds, such investments  shall  be  in
listed bonds.

The investment objectives and policies set out above will, in the absence
of  unforeseen  circumstances, be adhered to for  at  least  three  years
following the listing of the Shares on the London Stock Exchange becoming
effective.  Within  the first three years following the  listing  of  the
Shares  on  the London Stock Exchange, prior approval of the Shareholders
will also be required to any change to the investment objectives and  to
any material change to the investment policy of the Company. Thereafter,
the Shareholders must approve any amendment in the investment objectives
of the Company and be notified of any amendment in its investment policy.
Prior approval  of the Ministry of Finance and Economy and  the  Central
Bank will  be required to amend the investment objectives and policy  of
the Company at any time.

The Company may use forwards, swaps, futures, options, repurchase/reverse
repurchase and stocklending agreements relating to transferable securities 
for the purpose of efficient portfolio management in accordance with the 
limits laid down by the Central Bank. The Company may employ  futures, 
options, swaps and/or forwards for hedging purposes in any currency to provide
protection against exchange rate risks associated with all or part of its
underlying investments and proposed distributions or  may  employ forwards to
protect against interest rate risks in the context of the management of its
assets and liabilities.

Under the License, the Company may engage in currency forward transactions or
over-the-counter financial futures transactions involving  Won  and  foreign 
currencies  with foreign  exchange  banks, subject to the limits of the Gross
Asset Value of the Company  for the purpose of hedging against exchange rate and
interest rate risks arising from investments made by the Company and subject to
the limits of the Central Bank.

PRICES
Shareholders are not entitled to have their Shares redeemed or repurchased while
the Company remains closed-ended except in the case of a winding up of the
Company. Should the Company become open-ended then Shareholders may redeem their
Shares at the relevant Net Asset Value per Share.  A  repurchase  charge  is
payable on any repurchase of Shares effected at the rate of three per cent of
the relevant Net Asset  Value per Share.

VALUATION
A  Business Day is any day (except Saturday or Sunday) on which commercial banks
in Dublin, New York City, London and Seoul are open  for business.  Valuation
Day is the Thursday in each week or if Thursday is not a Business Day, the next
succeeding Business Day. Should the Company become open-ended, not less than ten
Business Days prior written notice must be given for a repurchase of Shares. All
deals should be addressed to the Administrator:

Deutsche International Fund Services (Ireland) Limited
George's Dock House
International Financial Services Centre
Dublin 1
Ireland

Telephone  353-1-6076300
Fax        353-1-6076489

DIVIDENDS
The Directors may declare any such dividends to the Shareholders as appear to 
the Directors to be appropriate. No dividend may be declared or paid other than
from funds lawfully available for distribution. Surpluses arising from the
realisation of investments shall not be available for distribution as dividends.
 The Directors intend to distribute as dividends a substantial portion of
interest income or dividends received from the Company's investments less
expenses.

MINIMUM INVESTMENT
Any further issue of Shares is subject to a minimum investment of the
equivalent of EUR 125,000.


SHARES
The  Shares were placed at a price per Share of US$10.37 and the Company
paid to the Lead Managers, out of the proceeds of the Placing, a combined
management commission and selling concession equal to US$0.25 per Share
for each Share subscribed in the Placing. The Lead Managers agreed to pay
the Company's preliminary expenses and all other costs of the Placing,
and the  Company  agreed,  in consideration thereof,  to pay the  Lead
Managers US$0.12 per Share for each Share subscribed in the Placing as  a
contribution to such costs and expenses. The Placing of 10,500,000 Shares
was underwritten by the Lead Managers.

COMPLIANCE WITH YEAR 2O00 ISSUES
Deutsche Bank AG,  the Administrator and Registrar's ultimate holding company, 
set up a global Year 2000 Project in 1996 which covers all consolidated Group
companies, including Deutsche International Fund Services (Ireland)  Limited.  
The Project was successfully implemented and no material problems have arisen 
following the transition into the new millennium. The Project continues
monitoring the Year 2000 conformity of the Group's IT-infrastructure to address
any Year 2000 problems that may occur post January 1, 2000.

The Directors are aware of the continuing potential problem posed to
computer systems by the Year 2000 subsequent to the date change, its
potential impact on the Company's operations, and have considered the key
risks arising. If expenditure in connection with the Year 2000 project
becomes necessary subsequently, it will be borne by the Administrator.

ADDENDUM TO THE PROSPECTUS
An Addendum to the Prospectus was issued on 2 December, 1999 which allowed 
for the Amendment of the definition of Valuation Point and was effective from 
6 January, 2000.

CHANGE IN SPONSORING BROKER
With effect from 31 March, 2000 NCB Stockbrokers Ltd were appointed as  a
Sponsoring Broker in replacement of Nomura International plc.


Investment Adviser's Report for the six months ended 31 March, 2000

The Korea Bond Fund returned in excess of 14% in US$ terms during the
semi-annual period ended 31 March, 2000. Recovery in domestic demand has
taken hold  while  strong  global economic growth continues to propel
exports.  The  export price recovery, which began in the second part of
1999,  has  also  taken hold and provides additional support for Korean
economic fundamentals. The pick up in activity in China has also helped
to improve prospects for the region.

The won appreciated during the period as officials opted for a stronger
exchange rate  rather than substantially higher domestic interest rates
to control inflation. The current strength of the economic recovery has
begun to put some upward pressure on prices and will likely  require  a
degree  of  monetary tightening in the near term. Although  the  headline
inflation  number has not moved dramatically the trend has clearly begun
to  move  higher.  It  is likely that going forward the  government will
adopt  a more balanced approach, using both a strong currency and higher
policy rates to keep inflation in check.

Direct investment, which increased to US$4.5 billion in 1999 from US$390
million in  1998, also offered a source of support for  the  won. These
inflows have been accelerating on the back of strong economic growth, up
approximately  10.7%  in  1999, and increasing  domestic  demand, up an
impressive 12.5% during the year. Although it is likely that growth will
moderate in  2000,  as monetary conditions are tightened,  high  private
sector savings  indicate that domestic demand will  continue  to  be  an
important source of strength. This should help to attract further  direct
investment, even in the face of somewhat tighter policy.

The spread  on  corporate bonds has widened to 300 basis points over three-month
rates in response to concern over higher inflation.  As  with many  election
periods, the run-up to April's general election was marked by  a 
clear pro-growth economic policy. It is likely that the end of this cycle  
will lead to a policy which is more directed at controlling inflationary 
pressures. Although this policy is likely to slow growth from its current  rate,
 a  more moderate level of economic activity combined with improved inflation
expectations should provide a more positive environment for the corporate bond
market over the medium term.

The financial position of the Korean government remains strong, with hard
currency reserves closing March 2000 at approximately US$84 billion, up from
US$52 billion at the end of 1998. Rising inflows from equity investments have 
offset some of the decline in the current account surplus, leaving the
government in a strong balance of payment position.  High reserves, a strong
balance of payments and  moderate internal debt provide the government with  
considerable policy flexibility in handling any economic imbalances.

The outlook for Korea remains positive. The main policy challenge for the
government in the next year will be to engineer a pre-emptive tightening of 
monetary conditions which will curtail the building inflationary  pressures. 
Success on this front should allow for a prolonged economic recovery, which will
provide an excellent investment environment for the Korea Bond Fund.

Scudder Kemper Investments, Inc.    LG Investment Trust Management Co., Ltd
Foreign Adviser                     Korean Adviser

Date: 10 May, 2000

Portfolio of Investments as at 31 March, 2000

NOMINAL        SECURITY*         SERIES COUPON  MATURITY    VALUE US$   FUND%

15,000,000,000 CHOSUN BREWERY CO   84    11.00  19/09/2001  13,708,229  16.29
 5,000,000,000 DAEHAN PULP CO      44    11.00  11/10/2001   4,577,627   5.45
15,000,000,000 DONGBU STEEL CO     36    11.00  30/09/2001  13,707,396  16.29
15,000,000,000 HANSOL PAPER CO    111    11.00  01/10/2001  13,733,421  16.32
 5,000,000,000 KOOKMIN VENTURE 
               CAPITAL CO           5    11.00  01/10/2001   4,570,883   5.43
10,000,000,000 KUKJE CORPORATION   50    11.00  23/10/2001   9,139,219  10.86
15,000,000,000 LG CALTEX OIL 
               CORPORATION         88    11.00  17/10/2001  13,754,892  16.35
 5,000,000,000 SHINMOORIM PAPER 
               MFG                 28    11.00  09/09/2001   4,576,567   5.44


PORTFOLIO OF INVESTMENTS                                    77,768,234  92.43

Cash and bank balances                                       4,813,522   5.72

Debtors                                                      1,667,779   1.98

Creditors                                                    (110,155)  (0.13)

NET ASSET VALUE AS AT 31/03/2000                           84,139,380  100.00

                                      31/03/2000     31/03/1999     31/03/1998

Net Asset Value                    US$84,139,380  US$78,480,644  US$52,782,937

Number of Shares in Issue             10,500,000     10,500,000     10,500,000

Net Asset Value per Share                US$8.01        US$7.47        US$5.03

Note: With the exception of LG Caltex Oil Corporation, which has its own
credit rating from Moody's, all other securities have been guaranteed by
a specific guarantor bank.

Note: Kukje Corporation defaulted on 31 August, 1998. Payments are being
made by the guarantor, Hanvit Bank, as successor to Hanil Bank. Hanvit
Bank merged with Commercial Bank of Korea and changed its name to Hanvit
Bank.

* All securities are admitted to official stock exchange listing or are
dealt in on another regulated market.

SECURITY                    GUARANTOR
CHOSUN BREWERY CO           HANVIT BANK
DAEHAN PULP CO              KOREA DEVELOPMENT BANK
DONGBU STEEL CO             KOREA EXCHANGE BANK
HANSOL PAPER CO             KOREA DEVELOPMENT BANK
KOOKMIN VENTURE CAPITAL CO  KOOKMIN BANK
KUKJE CORPORATION           HANVIT BANK
SHINMOOIM PAPER MFG         KOREA DEVELOPMENT BANK


Statement of Total Return for the six months ended 31 March, 2000

                                            Six months               Six months
                                        ended 31/03/00           ended 31/03/99
                                  Note  US$         US$       US$           US$
Net gains on investments during 
 the period                        2              7,497,108         15,029,763

Gross income                       3   4,356,631            3,990,189

Expenses                           4    (466,233)            (435,205)

Net income for the period                         3,890,398          3,554,984
                                                                    
Total return for the period                      11,387,506         18,584,747

Distributions                      5             (7,875,000)        (5,775,000)

Net increase in Shareholders' funds
from investment activities                        3,512,506         12,809,747

Earnings per Share 
(based on net income for the period)              37.05 cents       33.86 cents 

Statement of Movements in Shareholders' Funds for the six months ended
31 March, 2000
                                              Six months         Six months
                                          ended 31/03/00     ended 31/03/99
                                                     US$                US$
Net assets at the start of the period         80,626,874         65,670,897

Net increase in Shareholders' funds
from investment activities                     3,512,506         12,809,747

Net assets at the end of the period           84,139,380         78,480,643



Balance Sheet as at 31 March, 2000

                                               31/03/2000        31/03/1999
                                   Note               US$               US$
Portfolio of Investments          1(e), 9     77,768,234        71,825,345

Net current assets

Debtors                           6            1,667,779         1,053,966

Cash and bank balances            7            4,813,522         5,699,959
                                               ---------         ---------
                                               6,481,301         6,753,925

less

Creditors                         8            (110,155)          (98,626)
                                                -------            ------
Net current assets                            6,371,146         6,655,299
                                              ---------         ---------
Net assets                                   84,139,380        78,480,644
                                             ==========        ==========
Shareholders' Funds                          84,139,380        78,480,644
                                             ==========        ==========



Notes to the interim unaudited report for the six months ended 31 March, 2000

1. Accounting policies

a) Basis of amounting
   The financial statements are prepared under the historical cost convention   
  as modified by the inclusion of securities at valuation. The financial        
 statements are prepared in US Dollars.

b) Income recognition
   Income on interest bearing securities together with bank deposit interest 
   is accounted for on an accruals basis. Income is shown net of any            
  withholding tax.

c) Realised gains and losses on investments
   Realised gains and losses on sales of investments are calculated  based
   on the  average  book  cost of the investment in local  currency.  The
   associated  foreign exchange movement between the date of purchase  and
   the  date  of sale on the sale of investments is included in net  gains
   or losses on investments in the Statement of Total Return.

d) Unrealised gains and losses on investments
   Unrealised gains and losses on investments arising during the year  are
   taken to the Statement of Total Return.

e) Valuation of securities
   Bonds  -  Each  individual bond within the portfolio is valued on a
   discounted basis by reference to the yield curves for bonds of similar
   credit rating and duration. A spread of 50 basis points is added to
   reflect the liquidity risk inherent in the bond. This procedure has been     
  approved by the Directors on the recommendation of the Investment Advisers.

f) Foreign exchange
   Foreign  currency  assets and liabilities, including  investments,  are
   translated  into  US  dollars at the exchange rate  prevailing  at  the
   period  end. The foreign exchange gain or loss based on the translation
   of  the  original cost of the investments is included in net  gains  or
   losses  on  investments in the Statement of Total Return. The  gain  or
   loss  arising  on  the translation of other assets and  liabilities  is
   included in other gains or losses in the Statement of Total Return.

   During the year the method of accounting for the  foreign  exchange
   gains or losses on investments was changed to include these gains  or
   losses with the underlying capital gains or losses on investments,  as
   in the opinion of the Directors this is a more appropriate  treatment
   for  these  gains.  These  gains  were  previously  shown  as   'Other
   Gains/Losses',  and therefore there is no effect on  the  Total  Return
   for  the  year. Prior year comparative figures have been reinstated  to
   reflect this change.

9) Distribution policy
   The Directors intend to distribute as dividends a substantial  portion
   of interest   income  or  dividends  received  from   the   Company's
   investments  after  payment  of expenses.  The  Directors  expect  that
   dividends,  if  any, will usually be paid annually in or about  October
   of  each  year, but the Directors may from time to  time  approve  the
   payment  to  Shareholders of such interim dividends as  appear  to  the
   Directors to be justified by the position of the Company,


2. Net gains on investments during the period

   The net gains on investments during the period comprise:
                                               
                                                Six months       Six months
                                              ended 31/03/00  ended 31/03/99
                                                         US$             US$

 Gains realised on investments sold 
               during the period                          0               0

 Net unrealised depreciation at the      
               start of the period               29,544,811       43,020,358

 Net unrealised depreciation at the 
               end of the period                (22,047,703)     (27,990,595)
                                                 __________       __________
 Net gains on investments during the period       7,497,108       15,029,763
                                                 ==========       ==========

2. Gross income

                                                Six months       Six months
                                              ended 31/03/00   ended 31/03/99
                                                         US$              US$

Income from investments                           4,155,854        3,873,482
Bank interest                                       200,777          116,707
                                                  _________        _________
                                                  4,356,631        3,990,189
                                                  =========        =========


4. Expenses                                     Six months       Six months
                                              ended 31/03/00   ended 31/03/99
                                                         US$              US$
                                     
Payable to the Investment Manager               
Investment Management fee                           (310,602)        (278,372)
                                                     -------          -------
Payable to the Administrator
Administration fee                                   (41,379)         (36,461)
                                                      ------           ------
Payable to the Custodian
Custody fee                                          (20,690)         (18,230)
                                                      ------           ------
Other expenses
Directors' fees                                      (10,026)          (9,972)
Audit fee                                             (3,739)          (4,634)
Sub-Custody fee                                      (33,959)         (41,262)
Other                                                (45,838)         (46,274)
                                                      ------           ------
                                                     (93,562)        (102,142)

Total expenses                                      (466,233)        (435,205)
                                                     =======           ======
5. Distributions


                                                Six months       Six months
                                              ended 31/03/00   ended 31/03/99
                                                         US$              US$

Undistributed income at 30 September               8,763,055        7,282,623

Distribution paid during the period*              (7,875,000)      (5,775,000)

Net income for the six months ended 31 March       3,890,398        3,554,984
                                                   _________        _________
Undistributed income at 31 March                   4,778,453        5,062,607
                                                   =========        =========

* Rate per Share                                     US$0.75          US$0.55


6. Debtors
                                                  31/03/2000      31/03/1999
                                                         US$             US$

   Accrued income                                  1,657,828       1,053,966
   Other debtors                                       9,951               0
                                                   ---------       ---------
                                                   1,667,779       1,053,966
                                                   =========       =========

7. Cash and bank balances
                                                  31/03/2000      31/03/1999
                                                         US$             US$

   Cash and bank balances                          4,813,522       5,699,959
                                                   =========       =========

   All cash balances are held with Deutsche Bank A.G., London.

8. Creditors
                                                  31/03/2000      31/03/1999
                                                         US$             US$

   Accrued expenses                                (110,155)        (98,626)
                                                    =======          ======

9. Investment in bonds

   The Company's portfolio consists of five year bonds issued by Korea
   Corporations. LG Securities Co., Limited ('LGS') arranged for certain
   Korean Corporations to issue such bonds in 1996, just prior to or
   during the time when the Company was assembling its bond portfolio.
   The Company's bond portfolio was purchased, in its entirety, from LGS
   at LGS's costs of acquisition and funding. These bonds are currently
   listed on the Korea Stock Exchange. The Company is the sole holder of
   these bonds.

10.Exchange rates

   The following US$ exchange rate as at 31 March, 2000 has been used in
   this report:

    KSWN      1,105.25

11.Soft commission arrangements

   There were no soft commission arrangements in existence during the
   period under review.


12.Portfolio changes

   There have been no purchases or sales of securities during the period
   under review.

13.Approval of the interim unaudited report

   The interim unaudited report was approved by the Board of Directors
   on 16 May, 2000.
 

Other Information

INVESTMENT MANAGER

Korea Bond Fund Management Co., Limited
Ugland House
PO Box 309
South Church Street
George Town
Grand Cayman
Cayman Islands
British West Indies

INVESTMENT ADVISERS

Foreign Adviser                     Korean Adviser
Scudder Kemper Investments, Inc.    LG Investment Trust Management Co.,Ltd
345 Park Avenue                     34-6, Yoido-dong, Youngdeungpo-ku
New York                            Seoul 150-010
New York 10154-0010                 Korea
USA

Korean Adviser
Kyobo Investment Trust Management Co., Ltd
The Korean Securities Dealers Association
Building
11th Floor
34, Yoido-dong. Youngdeungpo-ku
Seoul 150-010
Korea

ADMINISTRATOR & REGISTRAR
Deutsche International Fund Services (Ireland) Limited
George's Dock House
International Financial Services Centre
Dublin 1
Ireland

CUSTODIAN
Deutsche International Custodial Services (Ireland) Limited
George's Dock House
International Financial Services Centre
Dublin 1
Ireland

SUB-CUSTODIAN IN KOREA

Deutsche Bank A.G.. Seoul Branch
Sei An Building 110-700
116, Shinmoonro 1-Ka Chong- Ro-Ka
Seoul
Korea

AUDITORS AND IRISH TAX ADVISERS

PricewaterhouseCoopers
Chartered Accountants
George's Quay
Dublin 2
Ireland

LEGAL ADVISERS
To the Company and the lead Managers as to Irish Law
Dillon Eustace
Grand Canal House
1 Upper Grand Canal Street
Dublin 4
Ireland

To the Company and the Lead Managers as to English Law
Slaughter and May
35 Basinghall Street
London
EC2V 5D8
United Kingdom

To the Company as to Korean Law
Kim & Chang
Seyang Building
223, Naeja-dong, Chongro-ku
Seoul 100-053
Korea

To the Lead Managers as to Korean Law
Shin & Kim
Samdo Building
4th Floor
1-170, Soonhwa-dong, Chung-ku
Seoul 100-130, Korea

To the Company and the Lead Managers as to United States law
Davis Polk & Wardell
Akasaka Twin Tower East
13th Floor
17-22, Akasaka 2-chome, Minato-ku
Tokyo 107
Japan

To the Investment Manager as to United States Law
Debevoise & Plimpton
875 Third Avenue
New York
New York 10022
USA

To the Investment Manager as to Cayman Islands Law
Maples & Calder
Ugland House
PO Box 309
South Church Street
Grand Cayman
Cayman Island
British West Indies

SECRETARY

Tudor Trust limited
Grand Canal House
1 Upper Grand Canal Street
Dublin 4
Ireland

DIRECTORS

Juris Padegs
Suk-Ryong Lee
Yasushi li
David Dillon
Paul McNaughton

LEAD MANAGERS

LG Securities Co.,Ltd 
34-6 Yoido-dong, Youngdeungpo-ku 
Seoul 150-010
Korea

Nomura International plc 
Nomura House 
1 St. Martin's le Grand 
London EC1A 4NP
United Kingdom

REGISTERED OFFICE

George's Dock House 
International Financial Services Centre 
Dublin 1
Ireland

SPONSORING BROKER

NCB Stockbrokers Ltd 
3 George's Dock 
International Financial Services Centre 
Dublin 1 
Ireland

                     

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