TIDMWKOF 
 
WEISS KOREA OPPORTUNITY FUND LTD. 
 
 
LEI 213800GXKGJVWN3BF511 
 
(Classified Regulated Information, under DTR 6 Annex 1 section 1.2) 
 
HALF-YEARLY FINANCIAL REPORT 
FOR THE PERIODED 30 JUNE 2021 
 
Weiss Korea Opportunity Fund Ltd. (the "Company") has today, released its 
Half-Yearly Financial Report for the period ended 30 June 2021. The Report will 
shortly be available for inspection via the 
Company's website www.weisskoreaopportunityfund.com. 
 
For further information, please contact: 
 
Singer Capital Markets 
James Maxwell/Justin McKeegan - Nominated       +44 20 7496 3000 
Adviser 
James Waterlow - Sales 
 
Northern Trust International Fund 
Administration Services (Guernsey) Limited 
Andy Le Page                                    +44 1481 745 405 
 
Summary Information 
 
The Company 
 
Weiss Korea Opportunity Fund Ltd. ("WKOF" or the "Company") was incorporated 
with limited liability in Guernsey as a closed-ended investment company on 12 
April 2013. The Company's Shares were admitted to trading on the Alternative 
Investment Market ("AIM") of the London Stock Exchange (the "LSE") on 14 May 
2013. 
 
The Company is managed by Weiss Asset Management LP (the "Investment Manager"), 
a Boston-based investment management company registered with the Securities and 
Exchange Commission in the United States of America. 
 
Investment Objective and Dividend Policy 
 
The Company's investment objective is to provide Shareholders with an 
attractive return on their investment, predominantly through long-term capital 
appreciation. The Company is geographically focused on South Korean companies. 
Specifically, the Company invests primarily in listed preferred shares issued 
by companies incorporated in South Korea, which in many cases trade at a 
discount to the corresponding common shares of the same companies. Since the 
Company's Admission to AIM, the Investment Manager has assembled a portfolio of 
South Korean preferred shares that it believes are undervalued and could 
appreciate based on the criteria that it selects. The Company may, in 
accordance with its investment policy, also invest some portion of its assets 
in other securities, including exchange-traded funds, futures contracts, 
options, swaps and derivatives related to South Korean equities, and cash and 
cash equivalents. The Company does not have any concentration limits. 
 
The Company intends to return to Shareholders all dividends received, net of 
withholding tax, on an annual basis. 
 
Investment Policy 
 
The Company is geographically focused on South Korean companies. Some of the 
considerations that affect the Investment Manager's choice of securities to buy 
and sell may include the discount at which a preferred share is trading 
relative to its respective common share, its dividend yield, its liquidity, and 
the weighting of its common share (if any) in the MSCI Korea 25/50 Net Total 
Return Index (the "Korea Index"), among other factors. Not all of these factors 
will necessarily be satisfied for particular investments. The Investment 
Manager does not generally make decisions based on corporate fundamentals or 
its view of the commercial prospects of an issuer. Preferred shares are 
selected by the Investment Manager at its sole discretion, subject to the 
overall control of the board of directors of the Company (the "Board"). 
 
The Company purchased certain credit default swaps on the sovereign debt of 
South Korea and put options on iShares MSCI South Korea as general market and 
portfolio hedges, but generally did not hedge its exposure to interest rates or 
foreign currencies during the period ended 30 June 2021 (2020: Nil). Please see 
additional information about the nature of these hedges in the Investment 
Manager's Report. 
 
Realisation Opportunity 
 
In accordance with the Company's Articles of Incorporation and its Admission 
Document, the Company offers all Shareholders the right to elect to realise 
some or all of the value of their Ordinary Shares (the "Realisation 
Opportunity"), less applicable costs and expenses, on or prior to the fourth 
anniversary of Company's admission to AIM and, unless it has already been 
determined that the Company be wound-up, every two years thereafter, the most 
recent being 14 May 2021 (the "Realisation Date"). 
 
On 15 March 2021, the Company announced that pursuant to the Realisation 
Opportunity, Shareholders who were on the register as at the record date could 
elect, during the Election Period, to redesignate all or part of their Ordinary 
Shares as Realisation Shares (provided that any part is rounded up to the 
nearest whole Ordinary Share). The Election Period commenced on 14 April 2021 
and closed on 7 May 2021. Elections were received from shareholders totalling 
of 11,710,750 Ordinary Shares, representing 14.5 per cent of the Company's 
issued share capital. 
 
Following the Realisation Date, the Ordinary Shares held by the Shareholders 
who elected for Realisation were redesignated as Realisation Shares and the 
Portfolio was split into two separate and distinct Pools, namely the 
Continuation Pool (comprising the assets attributable to the continuing 
Ordinary Shares) and the Realisation Pool (comprising the assets attributable 
to the Realisation Shares). 
 
On 23 June 2021, the Company announced that it had made good progress with the 
sale of assets in the Realisation Pool and would commence with the first 
compulsory redemption of Realisation shares representing approximately 76.7 per 
cent. of Realisation Shares in issue (the "First Redemption"). The First 
Redemption was effected pro-rata to holdings of Realisation Shares on the 
register at the close of business on 22 June 2021 ("First Redemption Date"). 
The First Redemption price was 278.4 pence per Realisation Share (the "First 
Redemptions Price"), equivalent to the unaudited Net Asset Value per 
Realisation Share as at 31 May 2021. 
 
Following the period end, the Company made good progress with the sale of the 
remaining assets in the Realisation Pool and on 7 September 2021 announced a 
second compulsory redemption of Realisation shares representing approximately 
90 per cent of Realisation Shares (the "Second Redemption"). The Second 
Redemption will be effected in the same manner as the First Redemption at a 
price of 275.55 pence per Realisation Share, equivalent to the Net Asset Value 
per Realisation Share as at 31 August 2021, and with a record date of 6 
September 2021. 
 
Share Buybacks 
 
In addition to the Realisation Opportunity, the Company has authority to 
repurchase on the open market up to 40 percent of its outstanding Ordinary 
Shares. During the period ended 30 June 2021, the Company purchased 600,000 
shares (2020: Nil) of its own Shares at a consideration of £1,719,433 (31 
December 2020: £Nil) under its general buyback authority. 
 
Shareholder Information 
 
Northern Trust International Fund Administration Services (Guernsey) Limited 
(the "Administrator") is responsible for calculating the Net Asset Value 
("NAV") per Share of the Company. The unaudited NAV per Ordinary Share is 
calculated on a weekly basis and at the month end by the Administrator, and is 
announced by a Regulatory News Service and is available through the Company's 
website www.weisskoreaopportunityfund.com. 
 
Company financial highlights and performance summary for the period ended 30 
June 2021 
 
                                                               As at               As at 
 
                                                        30 June 2021    31 December 2020 
 
                                                                   £                   £ 
 
Total Net Assets                                         202,234,409         203,124,953 
 
NAV per share - Continuation                                  2.8038              2.4887 
Pool 
 
NAV per share - Realisation                                   2.8975                   - 
Pool 
 
Basic and diluted earnings per share -                        0.3792              0.9724 
Continuation Pool 
 
Basic and diluted earnings per share -                        0.0894                   - 
Realisation Pool 
 
Mid-Market share price - Continuation                           2.73                2.38 
Pool 
 
Discount to NAV* - Continuation                               (2.6%)              (4.4%) 
Pool 
 
As at close of business on 1 September 2021, the latest published NAV per Share 
of the Continuation Pool had increased to £2.5605 (as at 31 August 2021) and 
the Share price stood at £2.58. 
 
*The amount by which the market value exceeds or is less than the face value of 
a stock. 
 
Total Expense Ratio 
 
The annualised total expense ratio of the Continuation Pool and the Realisation 
Pool for the six months ended 30 June 2021 were 1.76% and 1.60%, respectively 
(as at 31 December 2020: 1.81% and Nil, respectively). The annualised total 
expense ratio includes charges paid to the Investment Manager and other 
expenses divided by the average NAV for the period. 
 
Chair's Review 
For the period ended 30 June 2021 
 
We are pleased to provide the 2021 Half Yearly Report on the Company. During 
the period from 31 December 2020 to 30 June 2021 (the "Period"), the Company's 
net asset value increased by 14.8 per cent including reinvested dividends1 
outperforming the reference MSCI Korea 25/50 Net Total Return Index (the "Korea 
Index"), which increased 7.5 per cent in Pounds Sterling ("GBP"). Since the 
admission of the Company to AIM in May 2013, the net asset value has increased 
by 232.2 per cent including reinvested dividends1 (or 212.2 per cent assuming 
dividends are not reinvested in the Company)2, compared to the Korea Index 
returns of 111.2 per cent.2, an annualised outperformance of the index of 
14.9%. A report from the Investment Manager follows. 
 
The Directors declared a dividend of 5.2311 pence per Share, ex-dividend date 
10 May 2021, to distribute the income received by the Company in respect of the 
year ended 31 December 2020. This dividend was paid to all Shareholders on 4 
June 2021. 
 
As I reported to investors in prior letters, WKOF is pursuing a strategy of 
rebalancing the portfolio towards Korean preference shares trading at wider 
discounts, where the Investment Manager believes the greatest returns can be 
made. This continues to be the strategy and WKOF's 'Portfolio Discount' reached 
52% at 30 June 2021 and is still currently approximately 52%. That is the 
widest Portfolio Discount WKOF has held since 2013. The widening of the 
Portfolio Discount was in part due to the Company substantially reducing its 
exposure to the preferred shares of Samsung Electronics while those preferred 
shares were trading at historically narrow discounts to the company's common 
shares. The Company has been successful to date in capturing returns from 
discount narrowing in the preferred share space. Given the current Portfolio 
Discount, the Board believes the Company is well positioned for additional 
outperformance from further discount narrowing over time. 
 
After 8 years of managing the portfolio, your Investment Manager has 
demonstrated that, although a narrowing of the discounts of preferred shares 
due to changes in corporate governance in Korea would be preferable, they are 
not essential to outperform the benchmark. WAM has been able to profitably 
trade volatility in preferred share discounts over the past 8 years, resulting 
in the significant outperformance mentioned in this review and the Investment 
Manager's Review. Corporate Governance in Korea has significantly improved 
since the launch of the Company and with the portfolio discount still at over 
50%, the Board looks forward to continued outperformance in the coming months 
and years. The staff at Weiss Asset Management should be congratulated in 
carrying out their mandate so successfully over the past 8 years. 
 
When the Company was launched in 2013 it committed to offer Shareholders the 
opportunity to elect to realise all or a part of their shareholding on or prior 
to the fourth anniversary of the Company's admission to AIM and every two years 
thereafter, unless it has already been determined that the Company will be 
wound-up. 
 
The Company conducted its third Realisation Opportunity during the Period and 
on 7 May 2021, the Election Period for the Realisation Opportunity closed; 
valid elections were received from Shareholders totalling 11,710,750 Ordinary 
Shares, representing approximately 14.5 per cent. of the Company's issued share 
capital. On 14 May 2021, these electing Ordinary Shares were redesignated as 
Realisation Shares, and on 28 June 2021, a first cash redemption equivalent to 
76.7% of Realisation Shares in issue was paid out to holders of Realisation 
Shares, followed by the second distribution of 90% of the Realisation Shares 
announced on the 7 September 2021. All Realisation Shares that were redeemed 
will be re-designated as Ordinary Shares and held in Treasury. 
 
None of the Directors and personnel associated with the Investment Manager 
participated in the Realisation Opportunity in respect of all, or any part of, 
their respective shareholdings. 
 
As I previewed in my year end letter to you, the Board and the Investment 
Manager have been working on a number of initiatives to broaden the shareholder 
base, increase liquidity for all Shareholders and make WKOF more attractive to 
a wider audience. In furtherance of these goals, the Company became a member of 
the Association of Investment Companies and registered under the Alternative 
Investment Fund Managers Directive ("AIFMD") during the Period. AIFMD 
registration allows the Company to issue new shares at a premium to NAV as well 
as redesignating Realisation Shares as Ordinary Shares that may be held in 
Treasury and be reissued without the costs typically associated with a new 
share issue. Registration also permits the Investment Manager to promote 
outstanding stock more actively to institutional investors in the UK which the 
Company intends to do in the near future as the opportunity to invest through 
preferred shares is the most attractive it has been since the launch of the 
Company 8 years ago. 
 
Based on the fact that the assets currently held by the Company consist mainly 
of securities that are readily realisable, whilst the Directors acknowledge 
that the liquidity of these assets needs to be managed, the Directors believe 
that the Company has adequate financial resources to meet its liabilities as 
they fall due for at least twelve months from the date of this report, and that 
it is appropriate for the Financial Statements to be prepared on a going 
concern basis. 
 
The Company has an active share repurchase program as part of its discount 
management strategy. On 27 January 2021, the Company purchased 600,000 ordinary 
shares at a price of 286.00p per share in accordance with the authority granted 
to it by Shareholders at its 2020 Annual General Meeting. 
 
The Board is authorised to repurchase up to 40 per cent of the Company's 
outstanding Ordinary Shares in issue as at 22 July 2021.3 Since Admission 
almost six years ago, and as at the date of this document, the Company has 
repurchased, at a discount to NAV, 13,190,250 Ordinary Shares of the original 
105,000,000 Ordinary Shares issued at Admission. The Board also has in place 
standing instructions with the Company's broker, Singer Capital Markets 
("Broker" or "Singer"), for the repurchase of the Company's Shares during 
closed periods when the Board is not permitted to give individual instructions; 
such closed periods typically occur around the preparation of the Annual and 
Half Yearly Financial Reports. The Board intends to continue to aggressively 
repurchase Shares if the Company's Shares are trading at a significant discount 
to net asset value. We will continue to keep Shareholders informed of any share 
repurchases through public announcements. 
 
As mentioned above, the portfolio of preferred shares held by your Company is 
trading at a discount to their equivalent ordinary shares not seen since the 
IPO over 8 years ago. The Board and the Investment Manager therefore believe 
that, for the first time since 2013, there is an opportunity for additional 
equity capital to be raised and invested in WKOF's strategy. This will allow 
existing and new investors access to a strategy that has proved successful on 
an absolute and relative basis over the past 8 years, an opportunity that the 
Board and Investment Manager believe will continue to be attractive over the 
medium term. 
 
The Board is therefore exploring the most appropriate way of raising additional 
capital with a view to delivering further value for shareholders. A further 
announcement will follow in due course. 
 
The Directors are pleased to welcome Gill Morris on to the Board where she will 
take over as head of the Audit Committee from Steve Coe in due course, as 
Steve's 8-year tenure on the Board approaches. Rob and I would like to thank 
Steve for his expertise, help and guidance to the Board and Shareholders since 
the launch of the Company, as well as his friendship. Gill also has a wealth of 
experience to bring to the role of audit chair as well as bringing a fresh 
perspective to the various issues, opportunities and challenges the Company 
will encounter over the next few, exciting years. 
 
Update on Environmental, Social and Governance ("ESG") Initiatives 
 
In the Chair's Statement in the last Annual Report, several paragraphs were 
dedicated to a discussion on how the Company could engage more effectively with 
its various stakeholders on Environmental, Social and Governance issues. During 
the first half of the year, I spoke with several shareholders of the three 
investment trusts I am a director of, and subsequently several service 
providers on a confidential basis about what approach they were taking with 
regard to ESG issues. As the Directors have made corporate governance central 
to their entire approach to the custodianship of Shareholders' interests, most 
of the time was spent discussing Environmental and Social ("E&S") issues. I 
would like to thank all those who took part. 
 
The aim of the discussions with the various investment managers was not to 
determine, encourage or suggest that they use ESG criteria in stock selection. 
Some investment mandates may take that into consideration, others will not. The 
aim was to start a conversation on how investment managers, and other 
stakeholders, apply ESG criteria within their own organisations. Shareholders 
pay investment managers, lawyers, accountants, and other service providers fees 
on an annual basis so many shareholders are keen to establish that some of that 
money is used to further E&S issues. WKOF is in an unusual position in that the 
Company owns non-voting shares so the influence over our underlying investments 
is negligible. WAM also uses quantitative factors in establishing buy and sell 
levels for the preferred shares in the portfolio. It is not in WKOF's 
Investment Policy to use ESG metrics in stock selection but to invest in 
undervalued or mispriced Korean preferred shares. This doctrine has served 
Shareholders well over the 8-year life of the Company and the Board expects 
this approach will continue for the foreseeable future. 
 
All but one of the stakeholders approached was willing to discuss E&S issues in 
detail and those agreeable gave up a great deal of their valuable time to help 
in this process. The overwhelming impression from my discussions was that many 
Shareholders and service providers are treating E&S considerations with an 
increasing sense of importance and that changes being made in these areas are 
being driven from the ground up, by shareholders, clients and staff rather than 
top down by governments or industry bodies. Some have taken it upon themselves 
to push E&S matters up the corporate agenda, whereas others have created 
committees to ensure that ESG issues are promoted within their organisation and 
encouraged in the wider community. It is clear that an organization's ESG 
principles are now scrutinised when Shareholders and service providers 
determine with whom to do business. As one person said, "If we pay anyone, then 
we believe they should adhere to our ESG principles." 
 
Many of those contacted believed that the UN Principles of Responsible 
Investment ("UNPRI") provided a useful standard. I encourage all the Company's 
shareholders and service providers to familiarise themselves with the 
Principles (further information may be found here www.unpri.org). Another 
common theme was that many shareholders and service providers use interactions 
with other groups to promote the ESG agenda. This may include the companies in 
which investment managers invest on behalf of shareholders, other shareholders 
they might interact with, as well as governments, national pension funds and 
other interested parties. 
 
On Environmental issues, the main concern raised by shareholders and service 
providers was climate change. Several recognised that business travel is one of 
the biggest sources of carbon emissions within their workplace and had used 
offset programs in the past. Some were now in the process of refining that 
approach to find the best offset program or reduce business travel accordingly. 
Others still were looking to quantify less obvious sources of carbon emissions 
by asking staff to detail their modes of travel to work. Once the problem has 
been measured, it is much easier to work on a solution. The Board felt this was 
a very sensible approach and will be adopting this in the coming months for 
your Company. Many were looking to lower carbon emissions by encouraging more 
environmentally friendly modes of transport such as cycling or walking to work, 
which may mean the installation of bicycle racks and showers. Only one of the 
companies approached was able to say that they used green suppliers for their 
electricity, but we are sure that number will increase over time as this is an 
obvious way to reduce everyone's carbon footprint. 
 
The response to Social issues was even more positive. Social issues such as 
sexism, racism, bullying and mental health are now much higher priority to 
service providers, and all are working hard to address these problems. It is 
positive that mental health is now a focus of several service providers. The 
Directors are pleased that some of the money that Shareholders pay to service 
providers is being used to address this issue, which has been brought clearly 
into focus during the current pandemic. Many of us have worked in the industry 
long enough to have lost friends and colleagues to suicide, drugs, alcohol or 
just over-work to understand the importance of good mental health support. 
Commendably, some stakeholders are also expanding this care into support for 
groups outside their offices. Many stakeholders support local charities with 
one stakeholder going even further and donating 10% of corporate profit to 
charities around the world, selected by employees. 
 
The E&S issues touched on above should be important in a civilised society but 
all too often they are downplayed in the quest for profit. One stakeholder 
approached has an Ethics Committee, and that is arguably more important. If we 
are acting in an ethical manner, then are not the Environmental and Social 
issues mentioned above already covered by ethics? An Ethics Committee with a 
broad enough remit and the power to address issues raised should cover all the 
ESG problems and many more. 
 
During these discussions it was suggested that the Company should introduce a 
framework to measure progress in ESG issues. I am reluctant to do this now as 
many groups already have a great deal of form-filling to deal with and adding 
to that burden should be avoided. We will however continue to discuss ESG with 
our stakeholders on an informal basis for the moment and I will report back to 
shareholders in the next Annual Report. 
 
At the moment your Board will be satisfied to see an improvement in ESG 
standards from all of your stakeholders. Some are just beginning to address E&S 
issues whereas others have a very sophisticated approach. We look forward to 
helping everyone work together to improve all aspects of ESG for the investment 
trust industry. 
 
The investment trust industry pays billions of pounds to investment managers 
and hundreds of millions of pounds to accountants, lawyers, company secretaries 
and all the other groups that make our industry run effectively. It is clear 
that shareholders of investment trusts have recently added E&S to their list of 
priorities along with Governance. I believe the boards of investment trusts, as 
the representatives of shareholders, have a duty to reflect these new 
priorities to other stakeholders, and to ensure that these new concerns are 
communicated well. Just as the industry responded to higher governance 
standards during my career from the 1990's onwards, so must the entire industry 
react to increasing concerns to E&S standards. On behalf of my fellow directors 
and Shareholders, I look forward to helping everyone work together to improve 
all aspects of ESG for the investment trust industry. 
 
1 This return includes all dividends paid to the Company's Shareholders and 
assumes that these dividends were reinvested in the Company's Shares at the 
next date for which the Company reports a NAV, at the NAV for that date. 
 
2 MSCI total return indices are calculated as if any dividends paid by 
constituents are reinvested at their respective closing prices on the ex-date 
of the distribution. 
 
3 On 22 July 2020, the Company had 69,307,078 Ordinary Shares in issue. 
 
Norman Crighton 
 
Chair 
 
7 September 2021 
 
Investment Manager's Report 
For the period ended 30 June 2021 
 
Performance 
 
In the first half of 2021, Weiss Korea Opportunity Fund's ("WKOF's") NAV in 
Pounds Sterling ("GBP") gained 14.6 per cent, including reinvested dividends.1 
This was an outperformance compared with the MSCI Korea 25/50 Index, which 
gained 7.5 per cent in GBP during the same period.2 From its inception in May 
2013 through 30 June 2021, WKOF has significantly outperformed the MSCI Korea 
25/50 Index: WKOF's NAV has increased 231.8 per cent (including reinvested 
dividends), compared to a 111.2 per cent return for the MSCI Korea 25/50 Index. 
The outperformance against the MSCI Korea 25/50 Index during the first half of 
2021 was largely due to narrowing of discounts among preferred shares held in 
WKOF's portfolio. 
 
Macroeconomics & COVID-19 
 
The South Korean economy continues to recover from the effects of the COVID-19 
pandemic. Based on improving economic data, the Governor of the Bank of Korea 
(the "Bank") commented in late June that the Bank expected to raise interest 
rates within the year. However, the Bank has not yet begun implementing that 
change; at its 15 July meeting, the Bank held rates steady at 0.50 per cent, an 
all-time low, which we believe is attributable to a spike in COVID-19 cases 
during the month. South Korea's headline CPI inflation moderated to 2.4 per 
cent year-on-year in June from 2.6 per cent in May but remains higher than the 
Bank of Korea's medium target inflation rate of 2 per cent. 
 
South Korea's economy continued to benefit from a strong upswing in exports, 
driven largely by pent up demand for its memory chips and cars. Export figures 
continue to rise as June ended with a 5.1 per cent month-over-month 
seasonally-adjusted expansion, marking five months of consecutive gains, and 
contributing to a year-over-year increase in overseas shipments of 
approximately 40 per cent. A substantial contributor to this increase in 
exports is a rise in semiconductor exports. As a major semiconductor exporter, 
Korea has benefited from the shortages in global semiconductor supply; 
moreover, the government has recently enacted policies to further boost the 
industry. For example, in May, President Moon announced a 'K-Semiconductor 
Strategy' to increase its market share across memory and non-memory chips by 
providing tax breaks and easing regulations for domestic chipmakers. 
 
Not all recent economic developments have been positive, however. In July, the 
emergence of the Delta variant led to a fourth wave of COVID-19 infections 
across South Korea. In response, the government reinstated social distancing 
guidelines and pandemic controls that it had been easing over the prior months. 
Seoul has been subject to the most stringent social distancing protocols (Level 
4) while surrounding regions have implemented 'Level 2' procedures. As the 
Delta variant has already produced the highest 7-day average number of new 
cases since the start of the pandemic, we are carefully monitoring this fourth 
wave of new cases and its impact. Fortunately, case fatality rates in South 
Korea remain at their lowest levels since April 2020. Vaccination rates have 
been slow but have showed meaningful progress since March; these rose from near 
zero at end-March to greater than 29 per cent of the total population being 
fully vaccinated as of end-August, with 56 per cent having received at least 
one dose. 
 
Portfolio Changes 
 
WKOF's Portfolio Discount widened from 49 per cent at end-December to 52 per 
cent at end-June. This is the widest month-end Portfolio Discount that WKOF has 
had. 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 preferred shares. We believe that a wider Portfolio 
Discount is generally consistent with a portfolio with higher expected returns. 
Note that a widening Portfolio Discount need not imply underperformance. 
Rather, an increase in the Portfolio Discount could occur if we sold securities 
with smaller discounts and purchased securities with larger discounts. We have 
been doing just that opportunistically from time to time, as we believe that 
securities with wider discounts have greater potential for future 
outperformance. WKOF's NAV outperformed the MSCI Korea 25/50 Index during the 
first half of 2020 even as the Portfolio Discount increased. 
 
A large driver of WKOF's returns since inception has been the narrowing of 
discounts of individual preferred shares owned versus the corresponding 
ordinary shares. In 2018, we previewed our plans to rebalance the Company's 
portfolio over time toward wider-discount Korean preferred shares; this 
rebalancing has enabled us to maintain a substantial Portfolio Discount by 
trading preferred shares with narrow discounts for those with wider ones. 
 
WKOF's annualised portfolio turnover for the first half of 2021 was higher than 
in all years apart from 2013 when the portfolio was under construction. The 
opportunities to profitably trade into and out of preferred shares are a 
function of the dispersion of discounts and available liquidity; currently both 
are high. As a result, WKOF's portfolio turnover remained elevated and on an 
annualized basis higher than turnover in 2020. The Fund purchased approximately 
82 million GBP and sold approximately 118 million GBP over an average monthly 
NAV of 274 million GBP. See Note 8 for purchase and disposal information. 
 
In line with this plan, WKOF continued to reduce its exposure to Samsung 
Electronics' ("Samsung") preferred shares during the first half of the year, 
resulting in Samsung no longer constituting a top-ten holding by end-June. When 
WKOF launched in May 2013, Samsung's preferred shares were trading at 
approximately a 35 per cent discount. At the end of June 2021, that discount 
had narrowed to 8.7 per cent. Replacing Samsung and Korean ETF exposure with 
securities trading at wider discounts was a significant contribution to the 
widening of the Portfolio Discount. 
 
We remind Shareholders to consider the preferred share discount levels 
described above in the context of the general fundamentals of the Korean 
equities market. The KOSPI 200 Index trades at a discount to other regional 
indices such as the Nikkei or Taiwan Stock Exchange Weighted Index based on 
forward price-to-earnings multiples. As of 31 August 2021, the KOSPI 200 Index 
had a forward P/E Ratio of 10.7, compared to the TAIEX at 14.1, the S&P at 
22.4, and the Nikkei at 17.1. 
 
Index Name                    Forward P/E      P/B Ratio     Dividend Yield 
                                Ratio3 
 
 Nifty Index (India)             23.5             3.6             1.0% 
 
 S&P 500 (US)                    22.4             4.7             1.3% 
 
 Nikkei 225 (Japan)              17.1             1.9             1.6% 
 
 TAIEX (Taiwan)                  14.1             2.3             2.6% 
 
 FTSE 100 (UK)                   12.6             1.8             3.8% 
 
 KOSPI 200 (S. Korea)            10.7             1.1             2.2% 
 
 Shanghai Composite (China)      13.0             1.7             2.0% 
 
Hang Seng Index (HK)             12.3             1.0             2.6% 
 
                                        Source: Bloomberg, as of 31 August 2021 
 
In addition to reducing its holdings of Samsung preferred shares, WKOF also 
increased exposure to Hyundai Motor Co ("Hyundai") during the period. This 
change has further contributed to the divergence of WKOF's holdings from the 
MSCI 25/50 Index weightings. Shareholders should be aware that WKOF was 
significantly underweight Samsung and overweight Hyundai Motor Co relative to 
MSCI Korea 25/50 Index at the end of June. 
 
Hyundai has three series of preferred shares outstanding, all trading at 
greater than 50 per cent discounts to Hyundai's ordinary shares. WKOF has 
previously held all three preferred share series, but currently only holds the 
2nd and 3rd series. The three series have historically traded at different 
levels, with the most liquid 2nd series trading at the narrowest discount, and 
the least liquid 3rd series at the widest discount. However, in January and 
late February, the 2nd series of preferred shares traded considerably wider 
than the 1st series. Following this development, WKOF transferred its exposure 
from the 1st series to the 2nd series since it continued to have greater 
liquidity and upside potential conditional upon a reversion to historical 
discount levels. This effect is enhanced as the discounts between Hyundai's 
preferred shares and its common shares have widened significantly. As of 30 
June 2021, the 2nd series of preferred shares of Hyundai were trading at a 52% 
discount, compared to a 42% discount in June 2020. Additionally, the chairman 
of Hyundai Motor Group announced he is considering options for a restructuring 
of the conglomerate and the modernization of its current cross-shareholding 
structure. As it stands, entities within the conglomerate have controlling 
interests in each other. We believe that a restructuring would benefit 
shareholders of Hyundai and have the potential to cause preferred share 
discounts to narrow. 
 
Discounts in other substantial positions in WKOF's portfolio have also 
narrowed, notably Amorepacific and Kumho Petro Chem ("Kumho"). Interestingly, 
in the case of Kumho, the discount change appears to have been largely driven 
by activism by members of Kumho's controlling family. This led to a proxy 
battle for board seats between the current chairman and the chairman's nephew, 
who is also the largest individual shareholder. Both parties pressed for a 
dividend increase; the Chairman suggested a 174 per cent increase in dividend 
per share while the activist (nephew) suggested a greater than 600% increase. 
The chairman won most agenda items at March's Annual General Meeting, including 
the contested dividend increase. Following this development, the preferred 
discount narrowed from 61 per cent to 56 per cent. While this specific set of 
circumstances is unlikely to repeat, we believe preferred shares trading at 
greater than 60 per cent discounts to common shares present an attractive 
opportunity. 
 
Positive dividend trends 
 
Dividend trends in the Korean market also remain positive. According to the 
Korea Exchange, combined dividend payments in 2020 by KOSPI companies closing 
their books in December increased by 60.7 per cent year-over-year, reaching a 
five-year high. The average dividend yield of all listed preferred shares also 
reached a five year high of 2.62 per cent (compared to 2.58, 2.51, and 2.28 per 
cent in 2019, 2018, and 2017, respectively). At the same time, the dividend 
payout ratio of the KOSPI has increased significantly since 2017, to around 40% 
at the end of 2020. 
 
While the companies in WKOF's portfolio pay a lower dividend on average, we are 
hopeful that broader market trends relating to dividends will extend to these 
companies as well, and that such trends will be accompanied by common price 
increases and narrowing preferred discounts. 
 
Hedging 
 
WKOF pursues its investment strategy with a portfolio that is generally long 
only. However, as described more fully in WKOF's Annual Report and Audited 
Financial Statements for the year ended 31 December 2017, because of political 
tensions in Northeast Asia, the Board approved a hedging strategy in September 
2017 that was intended to reduce exposure to extreme events that would be 
catastrophic to its Shareholders' investments in WKOF. As a result, WKOF has 
limited its use of hedging instruments to purchases of credit default swaps 
("CDS") and put options on the MSCI Korea 25/50 Index: securities that we 
believe would generate high returns if WKOF experienced geopolitical disaster 
without introducing material new risks into the portfolio. These catastrophe 
hedges are not expected to make money in most states of the world. We expect 
that, as with any insurance policy, WKOF's hedges will lose money most of the 
time. The tables below provide details about the hedges as of 30 June 2021. 
Note that outside of the general market and portfolio hedges described herein, 
WKOF has generally not hedged interest rates or currencies. 
 
Credit Default  Notional     Total Cost  Annual    Price Paid as Expiration Duration 
Swaps on South  Value (USD)  to          Cost      % of Notional Date       (Years) 
Korean                       Expiration  (USD)     Value 
Sovereign Debt               (USD)                 (per annum) 
 
5 year CDS      $20m         $457,151    $91,430   45bps         2023       5.0 
 
3 year CDS      $80m         $431,216    $143,739  18bps         2023       3.0 
 
Total Cost                   $888,367    $235,169 
 
 
 
Number of Put Option       Strike      Total Cost to       Purchase Expiration 
Contracts Held on EWY4     Price (USD) Expiration (USD)    Date     Date 
 
2,000                      $78         $504,069            18 June  21 January 
                                                           2021     2022 
 
Total Cost                             $504,069 
 
Conclusion 
 
In the context of WKOF's performance over its more than eight year history, it 
is perhaps surprising to find that the prospects for the current portfolio of 
Korean preferred shares seem as attractive as they have been since WKOF's 
inception. The overall Korean market remains one of the more cheaply valued 
equity markets globally and in the Asian region. There are more opportunities 
to invest in preferred shares at wide discounts today than we have seen in the 
last few years. Volatility in discounts over the last several years has 
presented opportunities to generate additional returns to investors. WKOF has a 
diversified portfolio of preference shares that as a group trade at less than 
half of the market value of the voting shares. While we do not have a crystal 
ball, we believe that this portfolio is a compelling value proposition for long 
term investors. 
 
Weiss Asset Management LP 
 
7 September 2021 
 
1 This return includes all dividends paid to the Company's Shareholders and 
assumes that these dividends were reinvested in the Company's Shares at the 
next date for which the Company reports a NAV, at the NAV for that date. 
 
2 MSCI Korea 25/50 Net Total Return Index denominated in GBP. MSCI total return 
indices are calculated as if any dividends paid by constituents are reinvested 
at their respective closing prices on the ex-date of the distribution. 
 
3 Forward Price/Earnings ratio based on estimated earnings, Bloomberg. 
 
4 iShares MSCI South Korea ETF, U.S. ticker EWY 
 
Statement of Principal and Emerging Risks and Uncertainties 
 
For the period ended 30 June 2021 
 
The Company's risk exposure and the effectiveness of its risk management and 
internal control systems are reviewed by the Audit Committee at its meetings 
and annually by the Board. The Board believes that the Company has adequate and 
effective systems in place to identify, mitigate, and manage the risks to which 
it is exposed. 
 
Emerging Risks 
 
In order to recognise any new risks that may impact the Company and to ensure 
that appropriate controls are in place to manage those risks, the Audit 
Committee undertakes a regular review of the Company's Risk Matrix. 
 
COVID-19 
 
The Board continues to monitor the impact of the COVID-19 outbreak and the 
impact that COVID-19 will continue to have on the future of the Company and the 
performance of the Portfolio. Notwithstanding the impact the outbreak has 
already had on the Company's share price and NAV performance, there remains 
continued uncertainty as to the consequences of the COVID-19 outbreak on the 
economy in general. 
 
From an operational perspective, the Company uses a number of service providers 
who have established, documented and regularly test their Business Resiliency 
Policies to cover various possible scenarios whereby staff cannot be present at 
the designated office and conduct business as usual. Since the COVID-19 
pandemic outbreak, service providers have deployed these alternative working 
policies to ensure continued business service. 
 
Principal Risks and Uncertainties 
 
In respect to the Company's system of internal controls and reviewing its 
effectiveness, the Directors: 
 
.        are satisfied that they have carried out a robust assessment of the 
principal risks facing the Company, including those that would threaten its 
business model, future performance, solvency, or liquidity; and 
 
.        have reviewed the effectiveness of the risk management and internal 
control systems, including material financial, operational, and compliance 
controls (including those relating to the financial reporting process) and no 
significant failings or weaknesses were identified. 
 
The principal risks and uncertainties which have been identified and the steps 
which are taken by the Board to mitigate them are as follows: 
 
Investment Risks 
 
The Company is exposed to the risk that its portfolio fails to perform in line 
with its investment objective and policy if markets move adversely or if the 
Investment Manager fails to comply with the investment policy. The Board 
reviews reports from the Investment Manager at the quarterly Board Meetings, 
with a focus on the performance of the portfolio in line with its investment 
policy. The Administrator is responsible for ensuring that all transactions are 
in accordance with the investment restrictions. 
 
Operational Risks 
 
The Company is exposed to the risk arising from any failures of systems and 
controls in the operations of the Investment Manager, Administrator, and the 
Custodian. The Board and its Committees regularly review reports from the 
Investment Manager and the Administrator on their internal controls. The 
Administrator will report to the Investment Manager any valuation issues which 
will be brought to the Board for final approval as required. 
 
Accounting, Legal and Regulatory Risks 
 
The Company is exposed to the risk that it may fail to maintain accurate 
accounting records, fail to comply with the requirements of its Admission 
Document and fail to meet its listing obligations. The accounting records 
prepared by the Administrator are reviewed by the Investment Manager. The 
Administrator, Broker, and Investment Manager provide regular updates to the 
Board on compliance with the Admission Document and changes in regulation. 
 
Discount Management 
 
The Board and its Broker monitor the Share price discount (or premium) 
continuously and have engaged in Share buybacks from time to time to help 
minimise any such discount. The Board believes that it has access to 
sufficiently liquid assets to help manage the Share price discount. 
 
Liquidity of Investments 
 
The Korean preferred shares typically purchased by the Company generally have 
smaller market capitalisations and lower levels of liquidity than their common 
share counterparts. These factors, among others, may result in more volatile 
price changes in the Company's assets as compared to the South Korean stock 
market or other more liquid asset classes. This volatility could cause the NAV 
to go up or down dramatically. 
 
Going Concern 
 
In accordance with the Company's Articles of Incorporation and its Admission 
Document, the Company offers all Shareholders the right to elect to realise 
some or all of the value of their Ordinary Shares (the "Realisation 
Opportunity"), less applicable costs and expenses, on or prior to the fourth 
anniversary of Company's admission to AIM and, unless it has already been 
determined that the Company be wound-up, every two years thereafter, the most 
recent being 14 May 2021 (the "Realisation Date"). 
 
On 15 March 2021, the Company announced that pursuant to the Realisation 
Opportunity, Shareholders who were on the register as at the record date could 
elect, during the Election Period, to redesignate all or part (provided that 
such part be rounded up to the nearest whole Ordinary Share) of their Ordinary 
Shares as Realisation Shares. The Election Period commenced on 14 April 2021 
and closed at 1pm, 7 May 2021. Elections were received from shareholders 
totalling of 11,710,750 Ordinary Shares, representing 14.5 per cent of the 
Company's issued share capital. 
 
As the aggregate NAV of the continuing Ordinary Shares at the close of business 
on the last Business Day before the Realisation Date was more than £50 million, 
the Ordinary Shares held by the Shareholders who have elected for Realisation 
have been redesignated as Realisation Shares and the Portfolio split into two 
separate and distinct Pools, namely the Continuation Pool (comprising the 
assets attributable to the continuing Ordinary Shares) and the Realisation Pool 
(comprising the assets attributable to the Realisation Shares). If one or more 
Realisation Elections are duly made and the NAV of the continuing Ordinary 
Shares at the close of business on the last Business Day before the 
Reorganisation Date is less than £50 million, the Directors may propose an 
ordinary resolution for the winding up of the Company and may pursue a 
liquidation of the Company instead of splitting the Portfolio into the 
Continuation Pool and the Realisation Pool. 
 
Based on the fact that the assets currently held by the Company consist mainly 
of securities that are readily realisable, whilst the Directors acknowledge 
that the liquidity of these assets needs to be managed, the Directors believe 
that the Company has adequate financial resources to meet its liabilities as 
they fall due for at least twelve months from the date of this report, and that 
it is appropriate for the Financial Statements to be prepared on a going 
concern basis. 
 
Directors 
For the period ended 30 June 2021 
 
The Company has four non-executive Directors, all of whom are considered 
independent of the Investment Manager and details are set out below. 
 
Norman Crighton (aged 55) 
 
Having worked within the investment trust and global closed-end fund industries 
for over 30 years, Mr Crighton has extensive experience of these sectors. 
Starting his career as an investment banker, he was soon running multinational 
teams within major investment banks overseeing sales, research, market making 
and corporate finance departments. He then moved on to the buy-side, managing a 
portfolio of closed-end funds for institutional investors on a long and hedged 
basis. Since 2011, he has joined the boards of many closed-end funds and 
trading companies, overseeing IPOs and capital raises, as well as 
restructurings and wind downs. He has expertise, and a particular interest, in 
ESG issues. Mr Crighton is also the Chair of RM Infrastructure Income and AVI 
Japan Opportunity Trust. 
 
Stephen Charles Coe (aged 55) 
 
Stephen is Chair of the Audit Committee. He is also Chair of the Audit 
Committee for Chrysalis Investment Company Limited. He has been involved with 
offshore investment funds and managers since 1990 with significant exposure to 
property, debt, emerging markets, and private equity investments. 
 
He qualified as a Chartered Accountant with Price Waterhouse Bristol in 1990 
and remained in audit practice, specialising in financial services, until 1997. 
From 1997 to 2003, he was a director of the Bachmann Group of fiduciary 
companies and Managing Director of Bachmann Fund Administration Limited, a 
specialist third party fund administration company. From 2003 to 2006, Stephen 
was a director with Investec in Guernsey and Managing Director of Investec 
Trust (Guernsey) Limited and Investec Administration Services Limited. He 
became self-employed in August 2006, providing services to financial services 
clients. Stephen is British and resident in Guernsey. Stephen was appointed to 
the Board in 2013. 
 
Robert Paul King (aged 58) 
 
Rob is a non-executive director for a number of open and closed-ended 
investment funds including Tufton Oceanic Assets Limited (chair) and CIP 
Merchant Capital Limited. Before becoming an independent non-executive director 
in 2011, he was a director of Cannon Asset Management Limited and their 
associated companies. Prior to this, he was a director of Northern Trust 
International Fund Administration Services (Guernsey) Limited (formerly 
Guernsey International Fund Managers Limited) where he had worked from 1990 to 
2007. He has been in the offshore finance industry since 1986 specialising in 
administration and structuring of offshore open and closed-ended investment 
funds. Rob is British and resident in Guernsey. Rob was appointed to the Board 
in 2013. 
 
Gillian Yvonne Morris (aged 58) 
 
Gill was appointed to the Board in 2021 and will become Chair of the Audit 
Committee when Stephen Coe retires. Gill is a non-executive director and Chair 
of the Audit Committee at The International Stock Exchange, a panel member of 
the States of Guernsey Financial Scrutiny Panel and the Guernsey Tax Tribunal. 
She also runs her own consultancy and coaching business. Gill qualified as a 
Chartered Accountant with the Institute of Chartered Accountants of England & 
Wales in 1988 and a Chartered Tax Advisor with the Chartered Institute of 
Taxation in 1994. Gill started her career in 1985 as a tax advisor at Touche 
Ross & Co in London. She worked with Touche Ross & Co and KPMG in Australia 
before returning to Guernsey with KPMG. Gill moved into industry in 1994 
joining Specsavers Optical Group as their tax manager and during her time with 
the Group was promoted to Director of Tax and Treasury.  As part of her role, 
she was a director of Specsavers Finance (Guernsey) Limited. She ultimately 
served as Director of Risk and Government Affairs until 2020. Gill has also 
held other government roles in Guernsey since 2012, including as a Non States 
member of the Public Accounts and the Scrutiny Management Committees and a 
panel member of The Trade Policy Advisory Panel. Gill is British and resident 
in Guernsey. 
 
Directors' Responsibility Statement 
 
For the period ended 30 June 2021 
 
The Directors are responsible for preparing the Unaudited Half-Yearly Financial 
Report (the "Condensed Financial Statements"), which have not been audited by 
an independent auditor, and confirm that to the best of their knowledge: 
 
·      these Condensed Financial Statements have been prepared in accordance 
with International Financial Reporting Standards ("IFRS") and in accordance 
with International Accounting Standard 34 "Interim Financial Reporting" issued 
by the European Union and the AIM Rules of the London Stock Exchange ("LSE"); 
 
·      these Condensed Financial Statements include a fair review of important 
events that have occurred during the period and their impact on the Condensed 
Financial Statements, together with a description of the principal risks and 
uncertainties of the Company for the remaining six months of the financial 
period as detailed in the Investment Manager's Report; and 
 
·      these Condensed Financial Statements include a fair review of related 
party transactions that have taken place during the six-month period which have 
had a material effect on the financial position or performance of the Company, 
together with disclosure of any changes in related-party transactions in the 
last Annual Report and Audited Financial Statements which have had a material 
effect on the financial position of the Company in the current period. 
 
The Directors confirm that the Condensed Financial Statements comply with the 
above requirements. 
 
On behalf of the Board, 
 
Norman Crighton 
Chair 
7 September 2021 
 
Stephen Coe 
Director 
 
7 September 2021 
 
Condensed Statement of Financial Position 
 
                                                                     As at          As at 
 
                                                                   30 June    31 December 
 
                                                                      2021           2020 
 
                                                               (Unaudited)      (Audited) 
 
                                                     Notes               £              £ 
 
Assets 
 
Financial assets at fair value through                 8       194,741,212    193,058,894 
profit or loss 
 
Derivative financial assets                            9           231,331         62,951 
 
Other receivables                                                  243,440      3,857,730 
 
Cash and cash equivalents                                        6,847,850      5,972,867 
 
Margin account                                                   1,707,673      2,095,974 
 
Due from broker                                                    289,611      2,989,619 
 
Total assets                                                   204,061,117    208,038,035 
 
Liabilities 
 
Derivative financial liabilities                       9         1,315,412      1,588,314 
 
Due to broker                                                            -      2,711,434 
 
Other payables                                                     511,296        613,334 
 
Total liabilities                                                1,826,708      4,913,082 
 
Net assets                                                     202,234,409    203,124,953 
 
Represented by: 
 
Shareholders' equity and 
reserves 
 
Share capital: 
 
Continuation Pool                                      10       33,986,846     68,124,035 
 
Realisation Pool                                       10        7,417,757              - 
 
Other reserves: 
 
Continuation Pool                                              160,334,893    135,000,918 
 
Realisation Pool                                                   494,913              - 
 
Total shareholders' equity                                     202,234,409    203,124,953 
 
Net assets per 
share: 
 
Continuation Pool                                      7            2.8038         2.4887 
 
Realisation Pool                                       7            2.8975 
                                                                                      - 
 
The Notes form an integral part of these Condensed Financial Statements. 
 
The Condensed Financial Statements were approved and authorised for issue by 
the Board of Directors on 
 
7 September 2021. 
 
Norman Crighton 
Chair 
7 September 2021 
 
Stephen Coe 
Director 
7 September 2021 
 
 
Condensed Statement of Comprehensive Income 
 
                                                           For the       For the 
                                                      period ended  period ended 
 
                                                      30 June 2021  30 June 2020 
 
                                                       (Unaudited)   (Unaudited) 
 
                                               Notes             £             £ 
 
Income 
 
Net changes in fair value of financial                  32,880,404    14,222,572 
assets 
at fair value through profit or loss 
 
Net changes in fair value of derivative                     82,819     1,581,263 
financial 
instruments through profit or loss 
 
Net foreign currency (losses)/gains                      (311,025)        53,624 
 
Dividend income                                            619,918       506,542 
 
Bank interest (expenses)/income                               (90)         3,302 
 
Total income                                            33,272,026    16,367,303 
 
Expenses 
 
Operating expenses                                     (3,068,708)   (1,937,790) 
 
Total operating expenses                               (3,068,708)   (1,937,790) 
 
Profit for the period before tax                        30,203,318    14,429,513 
 
Withholding tax                                  3       (136,305)     (111,440) 
 
Profit for the period after tax                         30,067,013    14,318,073 
 
Profit and total comprehensive                          30,067,013    14,318,073 
income for the period 
 
Basic and diluted earnings per Share: 
 
Continuation Pool                                6          0.3792        0.1754 
 
Realisation Pool                                 6          0.0894             - 
 
 
All items derive from continuing activities. 
 
The Notes form an integral part of these Condensed Financial Statements. 
 
Condensed Statement of Changes in Equity 
 
For the period ended 30 June 2021 (Unaudited) 
 
                                        Continuation Pool       Realisation Pool 
 
                                        Share       Other Share capital    Other        Total 
                                      capital    reserves               reserves 
 
                          Notes             £           £             £        £            £ 
 
Balance at 1 January               68,124,035 135,000,918             -        -  203,124,953 
2021 
 
Total comprehensive                         -  29,572,100             -  494,913   30,067,013 
income for the period 
 
Transactions with 
Shareholders, recorded 
directly in equity 
 
Redesignation of            10   (32,417,757)           -    32,417,757        -            - 
Realisation Shares 
 
Distributions paid          4               - (4,238,125)             -        -  (4,238,125) 
 
Redemption of Realisation   10              -           -  (25,000,000)        - (25,000,000) 
Shares 
 
Repurchase of Ordinary      10    (1,719,432)           -             -        -  (1,719,432) 
Shares 
 
Balance at 30 June 2021            33,986,846 160,334,893     7,417,757  494,913  202,234,409 
 
For the period ended 30 June 2020 (Unaudited) 
 
                                        Continuation Pool      Realisation Pool 
 
                                        Share       Other    Share        Other         Total 
                                      capital    reserves  capital     reserves 
 
                          Notes             £           £        £            £             £ 
 
Balance at 1 January 2020          68,124,035  58,864,697        -            -   126,988,732 
 
 
Total comprehensive                         -  14,318,073        -            -    14,318,073 
income for the period 
 
Transactions with 
Shareholders, recorded 
directly in equity 
 
Distributions paid          4               - (3,227,903)        -            -   (3,227,903) 
 
Balance at 30 June 2020            68,124,035  69,954,867        -            -   138,078,902 
 
 
The Notes form an integral part of these Condensed Financial Statements. 
 
Condensed Statement of Cash Flows 
 
                                                        For the period   For the period 
                                                                 ended            ended 
 
                                                          30 June 2021     30 June 2020 
 
                                                           (Unaudited)      (Unaudited) 
 
                                              Notes                  £                £ 
 
Cash flows from operating activities 
 
Profit for the period                                       30,067,013       14,318,073 
 
Adjustments for: 
 
Net change in fair value of financial assets              (32,569,379)     (14,276,196) 
held at fair value through profit or loss 
 
Net change in fair value of derivative                        (82,819)      (1,581,263) 
financial instruments held at fair value 
through profit or loss 
 
Dividend received                                            4,248,379        2,841,992 
 
Effect of foreign exchange rate fluctuations                 (311,025)           53,624 
 
Increase in receivables*                                      (14,171)          (8,923) 
 
Decrease in other payables                                   (102,038)        (170,422) 
 
Dividend income                                              (619,918)        (506,542) 
 
Net cash generated from operating activities                   616,042          670,343 
 
Cash flows from investing activities 
 
Purchase of financial assets at fair value through        (76,849,505)     (50,381,604) 
profit or loss 
 
Opening of derivative financial instruments     9            (358,461)        1,720,421 
 
Proceeds from the sale of financial assets at              108,036,164       48,487,308 
fair value through profit or loss 
 
Closure of derivative financial instruments     9                    -        1,213,148 
 
Decrease/(increase) in margin account                          388,301      (1,768,698) 
 
Net cash generated from/(used in) investing                 31,216,499        (729,425) 
activities 
 
Cash flows from financing activities 
 
Repurchase of Ordinary Shares                              (1,719,433)                - 
 
Repurchase of Realisation Shares                          (25,000,000)                - 
 
Distributions paid                              4          (4,238,125)      (3,227,903) 
 
Net cash used in financing activities                     (30,957,558)      (3,227,903) 
 
Net increase/(decrease) in cash and cash                       874,983      (3,286,985) 
equivalents 
 
Cash and cash equivalents at the beginning of                5,972,867        6,430,069 
the period 
 
Cash and cash equivalents at the end of the                  6,847,850        3,143,084 
period 
 
The Notes form an integral part of these Condensed Financial Statements. 
 
Notes to the Unaudited Condensed Financial Statements 
 
For the period ended 30 June 2021 
 
1.   General information 
 
The Company was incorporated with limited liability in Guernsey, as a 
closed-ended investment company on 12 April 2013. The Company's Shares were 
admitted to trading on AIM of the LSE on 14 May 2013. 
 
The Investment Manager of the Company is Weiss Asset Management LP. 
 
At the AGM held on 27 July 2016, the Board approved the adoption of the new 
Articles of Incorporation in accordance with Section 42(1) of the Companies 
(Guernsey) Law, 2008 (the "Law"). 
 
2.   Significant accounting policies 
 
a)  Statement of compliance 
 
The Condensed Financial Statements of the Company for the period ended 30 June 
2021 have been prepared in accordance with IFRS adopted by the European Union 
and the AIM Rules of the London Stock Exchange. They give a true and fair view 
and are in compliance with the Law. 
 
b)  Basis of preparation 
 
The Condensed Financial Statements are prepared in Pounds Sterling (£), which 
is the Company's functional and presentational currency. They are prepared on a 
historical cost basis modified to include financial assets at fair value 
through profit or loss. 
 
The Condensed Financial Statements, covering the period from 1 January to 30 
June 2021, are not audited. 
 
The accounting policies adopted are consistent with those used in the Annual 
Report and Audited Financial Statements for the year ended 31 December 2020. 
 
The Condensed Financial Statements do not include all the information and 
disclosures required in the Annual Report and Audited Financial Statements and 
should be read in conjunction with the Annual Report and Audited Financial 
Statements for the year ended 31 December 2020. The Auditor's Report contained 
within the Annual Report and Audited Financial Statements provided an 
unmodified opinion. 
 
The preparation of the Condensed Financial Statements requires management to 
make estimates and assumptions that affect the reported amounts of revenues, 
expenses, assets, and liabilities at the date of these Condensed Financial 
Statements. If in the future such estimates and assumptions which are based on 
management's best judgement at the date of the Condensed Financial Statements, 
deviate from the actual circumstances, the original estimates and assumptions 
will be modified as appropriate in the period in which the circumstances 
change. 
 
c)   Going concern 
 
The Board reviews the liquidity of the Portfolio quarterly and is satisfied 
that positions are sufficiently liquid to meet current and future obligations. 
The Board notes the Realisation Opportunity and is again satisfied that the 
balance of the realisation requests can be made from liquidating investments. 
The Board has reviewed the level of assets following the Realisation Date and 
determined that the Company retains the ability to continue as a going concern 
(based primarily on asset size). The Board and the Investment Manager believe 
the investment thesis continues to be valid. 
 
In accordance with the Company's Articles of Incorporation and its Admission 
Document, the Company offers all Shareholders the right to elect to realise 
some or all of the value of their Ordinary Shares (the "Realisation 
Opportunity"), less applicable costs and expenses, on or prior to the fourth 
anniversary of Company's admission to AIM and, unless it has already been 
determined that the Company be wound-up, every two years thereafter, the most 
recent being 14 May 2021 (the "Realisation Date"). 
 
On 15 March 2021, the Company announced that pursuant to the Realisation 
Opportunity, Shareholders who are on the register as at the record date may 
elect, during the Election Period, to redesignate all or part (provided that 
such part be rounded up to the nearest whole Ordinary Share) of their Ordinary 
Shares as Realisation Shares. The Election Period commenced on 14 April 2021 
and closed at 1pm, 7 May 2021. Elections were received from shareholders 
totalling of 11,710,750 Ordinary Shares, representing 14.5 per cent of the 
Company's issued share capital. 
 
Subject to the aggregate NAV of the continuing Ordinary Shares at the close of 
business on the last Business Day before the Realisation Date being not less 
than £50 million, the Ordinary Shares held by the Shareholders who have elected 
for Realisation were redesignated as Realisation Shares and the Portfolio split 
into two separate and distinct Pools, namely the Continuation Pool (comprising 
the assets attributable to the continuing Ordinary Shares) and the Realisation 
Pool (comprising the assets attributable to the Realisation Shares). If one or 
more future Realisation Elections are duly made and the NAV of the continuing 
Ordinary Shares at the close of business on the last Business Day before the 
Reorganisation Date is less than £50 million, the Directors may propose an 
ordinary resolution for the winding up of the Company and may pursue a 
liquidation of the Company instead of splitting the Portfolio into the 
Continuation Pool and the Realisation Pool. 
 
3.   Taxation 
 
The Company has been granted Exempt Status under the terms of The Income Tax 
(Exempt Bodies) (Guernsey) Ordinance, 1989 to income tax in Guernsey. Its 
liability is an annual fee of £1,200 (2020: £1,200). The amounts disclosed as 
taxation in the Condensed Statement of Comprehensive Income relate solely to 
withholding tax levied in South Korea on distributions from South Korean 
companies at an offshore rate of 22 per cent. 
 
4.   Dividends to Shareholders 
 
Dividends, if any, will be paid annually each year. An annual dividend of 
5.2311 pence per Share (£4,238,125) was approved on 4 May 2021 and paid on 
4 June 2021 in respect of the year ended 31 December 2020. An annual dividend 
of 3.9549 pence per Share (£3,227,903) was approved on 13 May 2020 and paid on 
12 June 2020 in respect of the year ended 31 December 2019. 
 
5.   Significant accounting judgements, estimates and assumptions 
 
The preparation of the Condensed Financial Statements in conformity with IFRS 
requires management to make judgements, estimates, and assumptions that affect 
the application of policies and the reported amounts of assets and liabilities, 
income and expense, and the accompanying disclosures. Uncertainty about these 
assumptions and estimates could result in outcomes that require a material 
adjustment to the carrying amount of assets or liabilities affected in future 
periods. The significant judgements, estimates, and assumptions made by 
management when applying the Company's accounting policies, as well as the key 
sources of estimation uncertainty, were the same for these Condensed Financial 
Statements as those that applied to the Annual Report and Audited Financial 
Statements for the year ended 31 December 2020. 
 
6.   Basic and diluted earnings per Share 
 
The basic and diluted earnings per Share for the Company have been calculated 
based on the total comprehensive income for the period and the weighted average 
number of Ordinary Shares in issue during the period as shown in the tables 
below. 
 
                                               For the period ended For the period ended 
 
                                                       30 June 2021         30 June 2020 
 
                                                                  £                    £ 
 
Profit and total comprehensive income for the 
period 
 
Continuation Pool                                        29,572,100           14,318,073 
 
Realisation Pool                                            494,913                    - 
 
Total profit and total comprehensive income              30,067,013           14,318,073 
for the period 
 
Weighted average number of Ordinary Shares 
 
Continuation Pool                                        77,981,628           81,617,828 
 
Realisation Pool                                          5,537,079                    - 
 
7.   Net Asset Value per Ordinary Share 
 
The NAV of each Share is determined by dividing the net assets of the Company 
attributed to the Ordinary Shares by the number of Ordinary Shares in issue at 
the end of the period/year. 
 
                                               For the period ended   For the year ended 
 
                                                       30 June 2021     31 December 2020 
 
                                                                  £                    £ 
 
Net assets: 
 
Continuation Pool                                       194,321,739          203,124,953 
 
Realisation Pool                                          7,912,670                    - 
 
Net Assets at the end of the period/year                202,234,409          203,124,953 
 
                                                      No. of Shares        No. of Shares 
 
Total Shares in issue at the end of the 
period/year: 
 
Continuation Pool                                        69,307,078           81,617,828 
 
Realisation Pool                                          2,730,865                    - 
 
Net assets per share at the end of the 
period/year: 
 
Continuation Pool                                            2.8038               2.4887 
 
Realisation Pool                                             2.8975                    - 
 
8.    Financial assets at fair value through profit or loss 
 
                                                           As at            As at 
 
                                                         30 June      31 December 
 
                                                            2021             2020 
 
                                                               £                £ 
 
                                                     (Unaudited)        (Audited) 
 
Cost of investments at beginning of                  137,878,681      106,419,418 
the period/year 
 
Purchases of investments in the                      106,552,181      109,275,618 
period/year 
 
Disposal of investments in the                     (137,750,267)    (111,376,783) 
period/year 
 
Proceeds from disposal of investments in the          39,426,189       33,560,428 
period/year 
 
Cost of investments held at end of                   146,106,784      137,878,681 
the period/year 
 
Unrealised gain on investments                        48,634,428       55,180,213 
 
Financial assets at fair value                       194,741,212      193,058,894 
through profit or loss 
 
9.   Derivative financial instruments at fair value through profit or loss 
 
                                                             As at                  As at 
 
                                                           30 June            31 December 
 
                                                              2021                   2020 
 
                                                                 £                      £ 
 
                                                       (Unaudited)              (Audited) 
 
Cost of derivatives at beginning of the                (1,745,063)            (1,174,737) 
period/year 
 
Opening of derivatives in the period/                      358,463            (1,457,636) 
year 
 
Closure of derivatives in the period/                            -            (1,422,226) 
year 
 
Realised (loss)/gain on closure of derivatives           (262,783)              2,309,536 
in the period/year 
 
Net cost of derivatives held at end of the             (1,649,383)            (1,745,063) 
period/year 
 
Unrealised gain on derivative financial                    565,302                219,700 
instruments at fair value through profit or 
loss 
 
Net fair value on derivative financial                 (1,084,081)            (1,525,363) 
instruments at fair value through profit or 
loss 
 
The following are the composition of the Company's derivative financial 
instruments at period/year end: 
 
                                                  As at                            As at 
 
                                                30 June                      31 December 
 
                                                   2021                             2020 
 
                                  Assets    Liabilities        Assets        Liabilities 
 
                             (Unaudited)    (Unaudited)     (Audited)          (Audited) 
 
Derivatives held for                   £              £             £                  £ 
trading: 
 
Options                          231,331              -        62,951                  - 
 
Credit default swaps                   -    (1,315,412)             -        (1,588,314) 
 
Total                            231,331    (1,315,412)        62,951        (1,588,314) 
 
10. Share capital 
 
The share capital of the Company consists of an unlimited number of Ordinary 
Shares of no par value. 
 
                                                                    As at            As at 
 
                                                                  30 June      31 December 
 
                                                                     2021             2020 
 
                                                              (Unaudited)        (Audited) 
 
Authorised 
 
Unlimited Ordinary Shares at no par value                               -                - 
 
Issued at no par value 
 
69,307,078 (2020: 81,617,828) unlimited Ordinary Shares at no           -                - 
par value 
 
Reconciliation of number of Shares 
 
                                                                    As at            As at 
 
                                                                  30 June      31 December 
 
                                                                     2021             2020 
 
                                                            No. of Shares    No. of Shares 
 
Continuation Shares                                           (Unaudited)        (Audited) 
 
Ordinary Shares at the beginning of the                        81,617,828       81,617,828 
period/year 
 
Repurchase of Ordinary Shares                                   (600,000)                - 
 
Redesignation of Realisation Shares                          (11,710,750)                - 
 
Total Ordinary Shares in issue at the end of the               69,307,078       81,617,828 
period/year 
 
Share capital account                                               As at            As at 
 
                                                                  30 June      31 December 
 
                                                                     2021             2020 
 
                                                                        £                £ 
 
                                                              (Unaudited)        (Audited) 
 
Share capital at the beginning of the                          68,124,035       68,124,035 
period/year 
 
Repurchase of Ordinary Shares                                 (1,719,433)                - 
 
Redesignation of Realisation Shares                          (32,417,756)                - 
 
Total Share capital at the end of the                          33,986,846       68,124,035 
period/year 
 
 
Ordinary Shares 
 
The Company has a single class of Ordinary Shares, which were issued by means 
of an initial public offering on 14 May 2013, at 100 pence per Share. 
 
The rights attached to the Ordinary Shares are as follows: 
 
a)   The holders of Ordinary Shares shall confer the right to all dividends in 
accordance with the Articles of Incorporation of the Company. 
 
b)  The capital and surplus assets of the Company remaining after payment of 
all creditors shall, on winding-up or on a return (other than by way of 
purchase or redemption of own Ordinary Shares) be divided amongst the 
Shareholders on the basis of the capital attributable to the Ordinary Shares at 
the date of winding up or other return of capital. 
 
c)   Shareholders present in person or by proxy or (being a corporation) 
present by a duly authorised representative at a general meeting have on a show 
of hands, one vote and, on a poll, one vote for every Share. 
 
d)  On 15 March 2021, being 44 days before the Subsequent Realisation Date, the 
Company published a circular pursuant to the Realisation Opportunity, entitling 
the Shareholders to serve a written notice during the election period (a 
"Realisation Election") requesting that all or a part of their Ordinary Shares 
be re-designated to Realisation Shares, subject to the aggregate NAV of the 
continuing Ordinary Shares on the last business day before the Reorganisation 
Date being not less than £50 million. As Shareholders elected to participate in 
the Realisation Opportunity, the Company's portfolio was divided into two 
pools: the Continuation Pool; and the Realisation Pool. 
 
e)   On 14 May 2021, 11,710,750 Ordinary Shares, which represented 14.5 per 
cent of the Company's issued Ordinary Share capital were redesignated as 
Realisation Shares. On 23 June 2021, the Board approved the First Redemption 
representing approximately 76.7 per cent of the Realisation Shares in issue. 
Accordingly, 8,979,885 Realisation Shares were redeemed at the First Redemption 
price. The First Redemption price was 278.40 pence per Realisation Share. The 
net assets of the Realisation Pool of £32,602,728, divided by the number of 
outstanding Realisation Shares in issue, being 11,710,750 Realisation Shares. 
The redemption proceeds were paid to the Realisation Shareholders during the 
week commencing 28 June 2021. The redeemed Realisation Shares were 
re-designated as Ordinary Shares and held in Treasury with effect from the 
First Redemption Date. 
 
Share buyback 
 
During the period ended 30 June 2021, the Company purchased 600,000 of its own 
Ordinary Shares (31 December 2020: Nil) at a consideration of £1,719,433 (31 
December 2020: £Nil) under the Share buyback authority originally granted to 
the Company in 2014. 
 
Following the Share buyback and redesignation of Realisation Shares, the 
Company has 69,307,078 Ordinary Shares in issue as of 30 June 2021 (as at 31 
December 2020: 81,617,828). 
 
At the AGM held on 22 July 2021, Shareholders granted the Company a general 
buy-back authority of up to 40% of the Company's issued share capital. Any 
Ordinary Shares bought back may be cancelled or held in treasury. 
 
On 6 March 2021, the Company reappointed Singer Capital Markets to manage the 
Closed Period Buy-Back Programme to buy back Ordinary Shares within certain 
pre-set parameters during the closed period leading up to the date of 
publication of these Unaudited Half-Yearly results. Any Ordinary Shares 
purchased in the Closed Period Buy-Back Programme will count towards the 
Company's Ordinary Share buy-back authority of 40% of the Company's issued 
Ordinary Share capital, as approved at the Company's AGM. 
 
                                                               As at              As at 
 
                                                             30 June        31 December 
 
                                                                2021               2020 
 
Realisation Shares                                       (Unaudited)          (Audited) 
 
Redesignated at no par value 
 
2,730,865 (2020: Nil) Realisation Shares at no                     -                  - 
par value 
 
                                                               As at              As at 
 
                                                             30 June        31 December 
 
                                                                2021               2020 
 
                                                       No. of Shares      No. of Shares 
 
                                                         (Unaudited)          (Audited) 
 
Redesignation of Realisation Shares                       11,710,750                  - 
 
Repurchase of Realisation Shares                         (8,979,885)                  - 
 
Total Realisation Shares in issue at the end of            2,730,865                  - 
the period/year 
 
Share capital account                                          As at              As at 
 
                                                             30 June        31 December 
 
                                                                2021               2020 
 
                                                                   £                  £ 
 
                                                         (Unaudited)          (Audited) 
 
Redesignation of Realisation Shares                       32,417,757                  - 
 
Repurchase of Realisation Shares                        (25,000,000)                  - 
 
Total Realisation Shares in issue at the end of            7,417,757                  - 
the period/year 
 
With effect from the Realisation Date, the assets in the Realisation Pool have 
been managed in accordance with an orderly realisation programme with the aim 
of making progressive returns of cash, as soon as practicable, to those 
Shareholders who have elected to redesignate their Ordinary Shares as 
Realisation Shares. Ordinary Shares held by Shareholders who did not submit a 
valid and complete election in accordance with the Articles during the Election 
Period have remained Ordinary Shares. 
 
The Portfolio was split into two separate and distinct Pools, namely the 
Continuation Pool (comprising the assets attributable to the continuing 
Ordinary Shares) and the Realisation Pool (comprising the assets attributable 
to the Realisation Shares). 
 
Unless it has already been determined that the Company will be wound up, every 
two years after the Realisation Date, the Directors will propose further 
realisation opportunities for Shareholders who have not previously elected to 
realise their Ordinary Shares using a similar mechanism used in the previously 
announced Realisation Opportunity. 
 
11. Related-party transactions and material agreements 
 
Related-party transactions 
 
a)    Directors' remuneration and expenses 
 
The Directors of the Company are remunerated for their services at such a rate 
as the Directors determine provided that the aggregate amount of such fees does 
not exceed £150,000 per annum. 
 
The annual Directors' fees comprise £30,000 payable to Mr Crighton as the 
Chair, £27,500 to Mr Coe as Chair of the Audit Committee and £24,000 to Mr 
King. On 13 August 2021, the Board announced the appointment of Mrs Morris, who 
has joined the Audit and the Management & Engagement committees of the Board 
and will replace Stephen Coe as Chair of the Audit Committee prior to 31 
December 2021. The annual Director's fees payable to Mrs Morris will be £24,000 
and these will increase to £27,500 following Mr Coe's retirement. 
 
During the period ended 30 June 2021, Directors' fees of £40,750 (period ended 
30 June 2020: £40,750) were charged to the Company and £Nil remained payable at 
the end of the period (as at 31 December 2020: £Nil). 
 
b)    Shares held by related parties 
 
The Directors who held office at 30 June 2021 and up to the date of this Report 
held the following number of 
 
Ordinary Shares beneficially: 
 
                                      As at 30 June 2021           As at 31 December 2020 
 
                            (Unaudited)      (Unaudited)      (Audited)         (Audited) 
 
                               Ordinary      % of issued       Ordinary       % of issued 
 
                                 Shares    share capital         Shares     share capital 
 
Norman Crighton                  20,000            0.03%         20,000             0.02% 
 
Stephen Coe                      10,000            0.01%         10,000             0.01% 
 
Robert King                      15,000            0.02%         15,000             0.02% 
 
The Investment Manager is principally owned by Dr Andrew Weiss and certain 
members of the Investment Manager's senior management team. 
 
As at 30 June 2021, Dr Andrew Weiss and his immediate family members held an 
interest in 6,486,888 Ordinary Shares (as at 31 December 2020: 6,486,888) 
representing 9.36 per cent. (as at 31 December 2020: 7.95 per cent.) of the 
Ordinary issued share capital of the Company. 
 
As at 30 June 2021, employees and partners of the Investment Manager other than 
Dr Andrew Weiss, their respective immediate family members or entities 
controlled by them or their immediate family members held an interest in 
2,844,333 Ordinary Shares (as at 31 December 2020: 2,844,333) representing 4.10 
per cent (as at 31 December 2020: 3.48 per cent.) of the Ordinary issued share 
capital of the Company. 
 
c)    Investment management fee 
 
The Company's Investment Manager is Weiss Asset Management LP. In consideration 
for its services provided by the Investment Manager under the Investment 
Management Agreement (IMA) dated 8 May 2013, the Investment Manager is entitled 
to an annual management fee of 1.5 per cent of the Company's NAV accrued daily 
and payable within 14 days after each month end. The Investment Manager is also 
entitled to reimbursement of certain expenses incurred by it in connection with 
its duties. 
 
The IMA will continue in force until terminated by the Investment Manager or 
the Company, giving to the other party thereto not less than 12 months' notice 
in writing. 
 
For the period ended 30 June 2021, investment management fees and charges of £ 
1,599,511 (for the period ended 30 June 2020: £907,692) were charged to the 
Company and £261,300 (as at 31 December 2020: £456,843) remained payable at the 
period end. 
 
12. Financial risk management 
 
IFRS 13 'Fair Value Measurement' requires the Company to establish a fair value 
hierarchy that prioritises the inputs to valuation techniques used to measure 
fair value. The hierarchy gives the highest priority to unadjusted quoted 
prices in active markets for identical assets or liabilities (Level 1 
measurements) and the lowest priority to unobservable inputs (Level 3 
measurements). 
 
The three levels of the fair value hierarchy under IFRS 13 'Fair Value 
Measurement' are set as follows: 
 
·      Level 1 Quoted prices (unadjusted) in active markets for identical 
assets or liabilities; 
 
·      Level 2 Inputs other than quoted prices included within Level 1 that are 
observable for the asset or liability either directly (that is, as prices) or 
indirectly (that is, derived from prices); and 
 
·      Level 3 Inputs for the asset or liability that are not based on 
observable market data (that is, unobservable inputs). 
 
The level in the fair value hierarchy within which the fair value measurement 
is categorised in its entirety is determined on the basis of the lowest level 
input that is significant to the fair value measurement. For this purpose, the 
significance of an input is assessed against the fair value measurement in its 
entirety. 
 
If a fair value measurement uses observable inputs that require significant 
adjustment based on unobservable inputs, that measurement is a Level 3 
measurement. Assessing the significance of a particular input to the fair value 
measurement requires judgement, considering factors specific to the asset or 
liability. 
 
The determination of what constitutes 'observable' requires significant 
judgement by the Company. The Company considers observable data to be that 
market data that is readily available, regularly distributed or updated, 
reliable and verifiable, not proprietary, and provided by independent sources 
that are actively involved in the relevant market. 
 
The following table presents the Company's financial assets and liabilities by 
level within the valuation hierarchy as of 30 June 2021: 
 
                                                                                   Total 
 
                                                                                   As at 
 
                                                                                 30 June 
 
                                          Level 1      Level 2     Level 3          2021 
 
                                                £            £           £             £ 
 
                                      (Unaudited)  (Unaudited) (Unaudited)   (Unaudited) 
 
Financial assets/(liabilities) at 
fair value through 
 
profit or loss: 
 
    Korean preferred shares           194,741,212            -           -   194,741,212 
 
    Financial derivative assets           231,331            -           -       231,331 
 
    Financial derivative                        -  (1,315,412)           -   (1,315,412) 
liabilities 
 
Total net assets                      194,972,543  (1,315,412)           -   193,657,131 
 
                                                                                   Total 
 
                                                                                   As at 
 
                                                                             31 December 
 
                                          Level 1     Level 2      Level 3          2020 
 
                                                £           £            £             £ 
 
                                        (Audited)   (Audited)    (Audited)     (Audited) 
 
Financial assets/(liabilities) at 
fair value through 
 
profit or loss: 
 
    Korean preferred shares           193,058,894           -            -   193,058,894 
 
    Financial derivative assets            62,951           -            -        62,951 
 
    Financial derivative                        - (1,588,314)            -   (1,588,314) 
liabilities 
 
Total net assets                      193,121,845 (1,588,314)            -   191,533,531 
 
 
The Company recognises transfers between levels of the fair value hierarchy as 
of the end of the reporting period during which the transfers have occurred. 
During the period ended 30 June 2021, financial assets of £Nil were transferred 
from Level 2 to Level 1 (for the year ended 31 December 2020: £Nil). 
 
Investments whose values are based on quoted market prices in active markets, 
and are therefore classified within Level 1, include Korean preference shares, 
exchange traded funds, and exchange traded options. 
 
The Company holds investments in derivative financial instruments which are 
classified as Level 2 within the fair value hierarchy. These consist of credit 
default swaps with a fair value of (£1,315,412) (as at 31 December 2020: (£ 
1,588,314). 
 
As at 30 June 2021, Level 1 financial derivative assets of £231,331 were held 
(as at 31 December 2020: £62,951). 
 
13. NAV reconciliation 
 
The Company announces its NAV to the LSE after each weekly and month-end 
valuation point. The following is a reconciliation of the NAV per Share 
attributable to participating Shareholders as presented in these Condensed 
Financial Statements, using IFRS to the NAV per Share reported to the LSE: 
 
                                            As at 30 June 2021    As at 31 December 2020 
 
                                                   (Unaudited)                 (Audited) 
 
                                                       NAV per                   NAV per 
 
                                                 Participating             Participating 
 
                                             NAV         Share         NAV         Share 
 
                                               £             £           £             £ 
 
Continuation Pool 
 
Net Asset Value reported to the LSE  194,097,647        2.8005 199,269,014        2.4415 
 
Adjustment to accruals and               (3,387)             -           -             - 
cash 
 
Adjustment for dividend                  227,478        0.0033   3,855,939        0.0472 
income 
 
Net Assets Attributable to           194,321,738        2.8038 203,124,953        2.4887 
Shareholders per Financial 
Statements 
 
Realisation Pool 
 
Net Asset Value reported to the LSE    7,912,670        2.8975           -             - 
 
Net Assets Attributable to             7,912,670        2.8975           -             - 
Shareholders per Financial 
Statements 
 
The Continuation Pool's published NAV per Share of £2.8005 (31 December 2020: £ 
2.4415) is different from the accounting NAV per Share of £2.8038 (31 December 
2020: £2.4887) due to the adjustment noted in the table above. The Realisation 
Pool's published NAV per Share of £2.8975 (31 December 2020: Nil) is the same 
as the accounting NAV per Share. 
 
14. Subsequent events 
 
These Condensed Financial Statements were approved for issuance by the Board on 
7 September 2021. Subsequent events have been evaluated until this date. 
 
At the AGM held on 22 July 2021, Shareholders approved the authority of the 
Company to buy back up to 40 per cent of the issued Ordinary Shares to 
facilitate the Company's discount management. Any Ordinary Shares bought back 
may be cancelled or held in treasury. Shareholders also approved the authority 
of the Company to issue, to grants rights to subscribe for, or to convert and 
make offers or agreements to issue Ordinary Shares for cash, provided that this 
power shall be limited so that it: 
 
i.     Expires at the earlier of either the conclusion of the next AGM or 15 
months from the granting of this authority; and 
 
ii.    Shall be limited to the issued of Ordinary Shares up to 6,930,707 
Ordinary Shares being approximately 10 per cent. of the Issued Share Capital of 
the Company, as at 22 July 2021. 
 
On 20 July 2021, the Board announced that it expected to appoint Gill Morris to 
the Board of the Company as Non-Executive Director, subject to the completion 
of customary due diligence checks by the Company's Nominated Adviser. On 13 
August 2021, the Board announced that it had appointed Gill Morris to the Board 
of the Company as Non-Executive Director with immediate effect following the 
successful completion of customary due diligence checks by the Company's 
Nominated Adviser. Mrs Morris has joined the Audit and the Management & 
Engagement committees of the Board and will replace Stephen Coe as Chair of the 
Audit Committee prior to 31 December 2021. 
 
On 7 September 2021, the Company announced the Second Redemption of 2,457,780 
Realisation Shares at 275.55 pence per Realisation Share. All Realisation 
Shares will be redesignated as Ordinary Shares and held in Treasury. Following 
the Second Redemption 273,085 Realisation Shares will remain in issue. 
 
No further subsequent events have occurred. 
 
Corporate Information 
 
Directors                                  Company Secretary, Administrator 
Norman Crighton (Non-executive Chair)      and 
Stephen Charles Coe (Non-executive         Designated Manager 
Director)                                  Northern Trust International Fund 
Robert Paul King (Non-executive Director)  Administration Services (Guernsey) 
Gillian Yvonne Morris (Non-executive       Limited 
Director) appointed 13 August 2021         PO Box 255 
                                           Trafalgar Court 
                                           Les Banques 
                                           St. Peter Port 
                                           Guernsey 
                                           GY1 3QL 
 
 
 
Registered Office                           Financial Adviser, Nominated 
PO Box 255                                  Adviser and Broker 
Trafalgar Court                             Singer Capital Markets 
Les Banques                                 1 Bartholomew Lane 
St. Peter Port                              London 
Guernsey                                    EC2N 2AX 
GY1 3QL 
 
Investment Manager                          Guernsey Legal Adviser to the 
Weiss Asset Management LP                   Company 
222 Berkeley Street, 16th Floor             Mourant Ozannes 
Boston, MA 02116                            PO Box 186 
USA                                         1 Le Marchant Street 
                                            St. Peter Port 
                                            Guernsey 
                                            GY1 4HP 
 
English Legal Adviser to the                Registrar 
Company                                     Link Market Services (Guernsey) 
Stephenson Harwood LLP                      Limited 
1 Finsbury Circus                           Mont Crevelt House 
London                                      Bulwer Avenue 
EC2M 7SH                                    St. Sampson 
                                            Guernsey 
                                            GY2 4LH 
 
Custodian and Principal Bankers             Independent Auditor 
Northern Trust (Guernsey) Limited           KPMG Channel Islands Limited 
PO Box 71                                   Glategny Court 
Trafalgar Court                             Glategny Esplanade 
Les Banques                                 St. Peter Port 
St. Peter Port                              Guernsey 
Guernsey                                    GY1 1WR 
GY1 3DA 
 
 
 
END 
 
 

(END) Dow Jones Newswires

September 07, 2021 08:19 ET (12:19 GMT)

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