WEISS KOREA OPPORTUNITY FUND LTD.
LEI 213800GXKGJVWN3BF511
(Classified Regulated Information, under DTR 6 Annex 1 section 1.1)
HALF-YEARLY FINANCIAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2025
Weiss Korea Opportunity Fund Ltd. (the “Company”) has today released its Half-yearly Financial Report for the period ended 30 June 2025. The Report will shortly be available for inspection via the Company's website www.weisskoreaopportunityfund.com.
Company Performance
As at
As at
30 June 2025
31 December 2024
£
£
Total Net Assets
112,585,886
96,960,467
NAV per share
1.63
1.40
Mid-Market Share price
1.52
1.36
Since Managed Wind-Down
WKOF Inception to Managed Wind-Down
NAV Return
20.3%
79.2%
Benchmark Return
27.3%
41.4%
As at
As at
30 June 2025
31 December 2024
Portfolio Discount*
22.7%
46.0%
Share Price Discount
(6.8%)
(3.2%)
Fund Dividend Yield
2.7%
3.8%
Average Trailing 12-Month P/E Ratio of Preference Shares Held
9.2x
6.0x
P/B Ratio of Preference Shares Held
0.3
0.3
Annualised Total Expense Ratio
2.5%
2.0%
*Since Managed Wind-Down
Performance since the start of Managed Wind-down on 15 April 2025 to 30 June 2025 is calculated on the basis of the Net Asset Value per Ordinary Share of WKOF. The value of WKOF NAV per share performance since Managed Wind-down represents a total return, inclusive of all dividends paid to WKOF Shareholders since Managed Wind-down. The NAV per share may differ from the price at which shares of WKOF may be purchased or sold on AIM. Performance of NAV per share during any specific period may therefore not be reflective of the returns an investor would receive by investing in shares of WKOF during such period. For WKOF, this return includes all dividends paid to WKOF’s Shareholders and assumes that these dividends were reinvested in WKOF’s Shares at the next date for which WKOF reports a NAV, at the NAV for that date.
*Portfolio Discount
The portfolio discount represents the discount of WKOF’s actual NAV to the value of what the NAV would be if WKOF held the respective common shares of issuers rather than preference shares on a one-to-one basis.
As at close of business on 22 September 2025, the latest published NAV per Share was £1.62 and the Share Price was £1.50.
Chair’s Report
For the period ended 30 June 2025
Company Performance
During the period, the Company announced its intention to enter into Managed Wind-down, which was approved by Shareholders on 14 April 2025. During the period 1 January 2025 to the commencement of the Managed Wind-down (14 April 2025), WKOF’s NAV in pounds Sterling (“GBP”) decreased by -1.04%, including reinvested dividends, compared to the reference MSCI South Korea 25/50 Net Total Return Index (the “Korea Index”), which appreciated by 0.2%. Performance since the Managed Wind-down is detailed in the Investment Manager’s report.
Dividend
The Directors declared an interim dividend of 4.0788 pence per share in May 2025 to distribute the income received by WKOF in respect of the period ended 30 April 2025. This dividend was paid to all Shareholders on 23 June 2025.
Compulsory Redemption
On 25 June 2025, the Company announced its intention to return £70 million to Shareholders by way of a compulsory redemption of Shares, in accordance with the terms of the Managed Wind-down previously approved by Shareholders. The redemption was executed following the close of business on 9 July 2025, with 42,931,567 Shares redeemed at a price of 163.05 pence per Share. Redemption proceeds were paid on 23 July 2025. All redeemed Shares were cancelled, and the remaining Shares were redesignated under the new ISIN: GG00BT26K977.
Future Redemptions
As separately announced today, the Company is pleased to confirm that it intends to return £35 million to Shareholders by way of a second compulsory redemption of shares. The second redemption is expected to be executed following the close of business on 7 October 2025 with proceeds paid on or around 21 October 2025. Further details of this redemption are set out in the separate announcement.
Subject to market conditions and other factors, we currently anticipate the liquidation of the Company and a final compulsory redemption to occur in the months following completion of the second compulsory redemption. We are mindful of managing the impact of costs on a diminishing portfolio of assets and will seek to liquidate the Company in a cost-effective manner. Shareholders will be closely informed of developments. It is also noted that the Company will be required to de-list before liquidation can take place.
I look forward to communicating with you about WKOF’s further progress over the coming months. If any Shareholders wish to speak with the Board, please contact Singers, and we will be happy to answer any questions you may have.
Krishna Shanmuganathan
Chair
23 September 2025
Investment Manager’s Report
For the period ended 30 June 2025
Managed Wind-down of the Fund
As discussed in last year’s Annual Report, we notified WKOF’s Board of Directors in November 2024 that we believed the opportunity set and strategy for the fund continuing in its current form was less attractive than it had been in the past, including at WKOF’s inception in 2013. Moreover, we did not think this change in circumstances was likely to improve in the foreseeable future. Our assessment was based on a number of factors:
Several large and more liquid preference shares had their discounts narrowed to the point where they were no longer attractive investments for the fund. Consequently, the pool of more liquid preference shares available for investment decreased.
South Korea's continued efforts to open its financial markets to foreign investors meant that the Company's holdings could now be replicated in more cost-effective ways than through the Company itself.
It was felt that given the above and the performance over the last two years that more shareholders would be likely to consider taking up the realisation opportunity which was due to take place this year. If this had happened, the overhead cost per share to investors would increase, potentially to an uneconomic and unacceptable level.
The Board subsequently commenced a strategic review to consider the future of the Company and to explore the strategic options available, including a change of investment mandate and/or a potential combination of the Company’s assets with another suitable investment company or fund. The shortlisted proposals were thoroughly assessed and meetings were held with interested parties. However, due to the complexities associated with the shortlisted proposals that came to light in the detailed discussions, combined with differing views of Shareholders, the Board reached the decision that a Managed Wind-down was the fairest proposal and would be in the best interests of the Company and its Shareholders as a whole.
Shareholders approved the Managed Wind-down at an Extraordinary General Meeting on 14 April 2025, and the Company formally began the wind-down process. We are pleased to report the Company made a distribution of GBP 70.0 million via compulsory redemption on 9 July (paid on 23 July) with minimal market impact.
WKOF Performance Attribution
Prior to the Managed Wind-down, WKOF’s returns (on a currency-neutral basis) were driven by five primary factors:
The performance of the Korean equity market generally as indicated by the Korea Index;
The discounts of the preference shares WKOF holds narrowing or widening relative to their corresponding common shares;
The performance of the common shares (which correspond to the preference shares held by WKOF) relative to the performance of the Korean equity market;
Excess dividend yields of the preference shares held by WKOF; and
Fees, expenses and other factors.
In order to compare WKOF’s relative return to the Korea Index, we report the attribution of these aforementioned factors to Company’s performance from inception until the date of the Managed Wind-down (14 April 2025). Since the Managed Wind-down, WKOF’s returns have additionally been driven by the presence of cash-equivalent instruments in the portfolio, which have been accumulated to fund distributions.
Performance Attribution Table
Return Component
Inception to Managed Wind-down
Since Managed Wind-down
The Korea Index
57.9%
27.3%
Discount Narrowing (Widening) Of Preferred Shared Owned
72.4%
N/A
WKOF common Shares vs. The Korea Index
-24.6%
N/A
Excess Dividend Yield of Preferred Shares Owned
14.5%
N/A
Fees, Expenses and Others
-40.8%
N/A
NAV Performance
79.2%
20.3%
Since the Managed Wind-down, WKOF increased its holdings of cash and cash equivalents and decreased its holdings of Korean preference shares. Given the recent market rally in Korea’s equity markets, WKOF’s NAV performance has lagged The Korea Index.
WKOF Inception to Managed Wind-down performance is calculated from 14 May 2013 through 14 April 2025, and on the basis of the Initial Net Asset Value per Ordinary Share of WKOF.
Performance since the start of Managed Wind-down on 15 April 2025 until the last day of the relevant month. Performance for other periods, while available upon request, is not considered relevant in light WKOF’s current investment objective.
Hedging
Prior to the Managed Wind-down performance, WKOF pursued its investment strategy with a portfolio that was generally long-only. However, as further described in earlier Annual reports, the Board approved a hedging strategy intended to reduce exposure to extreme events that, earlier, would have been catastrophic to its Shareholders' Investments in WKOF because of political tensions in Northeast Asia.
WKOF limited its use of hedging instruments to the purchase of credit default swaps (“CDS”) and put options on the MSCI Korea 25/50 Index. As noted in the 2024 Annual Report, we expected WKOF’s exposure to CDS to gradually decrease during the Managed Wind-down process. As of 30 June 2025, WKOF has no exposure to CDS.
Concluding Remarks
Thank you to our long-term shareholders. We are proud of WKOF’s performance during the 12 years the Company has been listed on AIM, during which we have continually sought to do what is in the best interests of shareholders. We continue to believe the Managed Wind-down is in the best interest of our shareholders.
Weiss Asset Management LP
23 September 2025
Statement of Financial Position
As at 30 June 2025
As at
As at
30 June
31 December
2025
2024
(Unaudited)
(Audited)
£
£
Assets
Financial assets at fair value through profit or loss
97,855,874
94,780,296
Other receivables
3,377,866
913,777
Margin account
587,037
1,041,581
Cash and cash equivalents
13,005,240
1,224,127
Total assets
114,826,017
97,959,781
Liabilities
Derivative financial liabilities
-
283,591
Other payables
2,240,131
715,723
Total liabilities
2,240,131
999,314
Net assets
112,585,886
96,960,467
Represented by:
Shareholders' equity and reserves
Share capital
33,912,856
33,912,856
Other reserves
78,673,030
63,047,611
Total Shareholders' equity
112,585,886
96,960,467
Net Assets Value per Ordinary Share
1.6254
1.3998
The Financial Statements were approved and authorised for issue by the Board of Directors on 23 September 2025.
Krishna Shanmuganathan Gill Morris
Chair Director
Statement of Comprehensive Income
For the period ended 30 June 2025
For the period ended
For the period ended
30 June 2025
30 June 2024
(Unaudited)
(Unaudited)
£
£
Income
Net gain on financial assets atfair value through profit or loss
18,501,449
8,955,523
Net gain on derivative financial instruments at fair value through profit or loss
283,591
334,628
Net foreign currency losses
(78,141)
(317,329)
Dividend income
1,984,071
2,945,724
Bank interest income
8,655
2,788
Total income
20,699,625
11,921,334
Expenses
Operating expenses
(1,812,512)
(1,915,084)
Total operating expenses
(1,812,512)
(1,915,084)
Profit for the period before dividend withholding tax
18,887,113
10,006,250
Dividend withholding tax
(436,489)
(647,437)
Profit for the period after dividend withholding tax
18,450,624
9,358,813
Profit and total comprehensive income for the period
18,450,624
9,358,813
Basic and diluted earnings per Share
0.2664
0.1351
All items derive from continuing activities.
Following review of the AIC SORP and its impact on the Statement of Comprehensive Income, the Board has decided not to follow the recommended income and capital split. This is due to the fact that the Company’s dividend policy is not influenced by its expense policy.
Statement of Changes in Equity
For the period ended 30 June 2025
Share
Other
capital
reserves
Total
For the period ended 30 June 2025 (Unaudited)
£
£
£
Balance as at 1 January 2025
33,912,856
63,047,611
96,960,467
Total comprehensive income for the period
-
18,450,624
18,450,624
Transactions with Shareholders, recorded directly in equity
Distributions paid
-
(2,825,205)
(2,825,205)
Balance as at 30 June 2025
33,912,856
78,673,030
112,585,886
Share
Other
capital
reserves
Total
For the period ended 30 June 2024 (Unaudited)
£
£
£
Balance as at 1 January 2024
33,912,856
82,936,848
116,849,704
Total comprehensive income for the period
-
9,358,813
9,358,813
Transactions with Shareholders, recorded directly in equity
Distributions paid
-
(3,591,484)
(3,591,484)
Balance as at 30 June 2024
33,912,856
88,704,177
122,617,033
Statement of Cash Flows
For the period ended 30 June 2025
For the period ended 30 June 2025
For the period ended 30 June 2024
(Unaudited)
(Unaudited)
£
£
Cash flows from operating activities
Profit and total comprehensive income for the period
18,450,624
9,358,813
Adjustments for:
Interest income
(8,655)
-
Net gains on financial assets at fair value through profit or loss
(18,501,449)
(8,955,523)
Exchange losses on cash and cash equivalents
235,138
557,166
Net gains on derivative financial instruments at fair value through profit or loss
(283,591)
(334,628)
Increase in receivables excluding dividends
(1,539,090)
(13,594)
(Decrease)/increase in other payables excluding withholding tax
(109,933)
172,882
Dividend income net of withholding taxes
(1,547,582)
(2,298,287)
Dividend received net of withholding taxes
2,256,924
3,358,429
Bank interest received
8,655
-
Purchase of financial assets at fair value through profit or loss
(76,471,607)
(39,218,509)
Proceeds from the sale of financial assets at fair value through profit or loss
91,897,478
40,041,173
Net cash generated from operating activities
14,386,912
2,667,922
Cash flows from investing activities
Opening of derivative financial instruments
-
87
Closure of derivative financial instruments
-
(141)
Decrease/(increase) in margin account
454,544
(27,001)
Net cash generated from/ (used in) from investing activities
454,544
(27,055)
Cash flows from financing activities
Distributions paid
(2,825,205)
(3,591,484)
Net cash used in financing activities
(2,825,205)
(3,591,484)
Net increase/(decrease) in cash and cash equivalents
12,016,251
(950,617)
Exchange losses on cash and cash equivalents
(235,138)
(557,166)
Cash and cash equivalents at the beginning of the period
1,224,127
3,364,287
Cash and cash equivalents at the end of the period
13,005,240
1,856,504
For further information, please contact:
Singer Capital Markets Limited James Maxwell/ James Fischer – Nominated Adviser James Waterlow – Sales
+44 20 7496 3000
NorthernTrustInternationalFund Administration Services (Guernsey) Limited Company Secretary
