WEISS KOREA OPPORTUNITY FUND LTD.

Interim / Quarterly Report • Sep 23, 2025

National Storage Mechanism | Additional information

Weiss Korea Opportunity Fund - Half-Yearly Financial Report and Unaudited Financial Statements for the Period Ended 30 June 2025

PR Newswire

LONDON, United Kingdom, September 23

WEISS KOREA OPPORTUNITY FUND LTD.

LEI 213800GXKGJVWN3BF511

(Classified Regulated Information, under DTR 6 Annex 1 section 1.1)

HALF-YEARLY FINANCIAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2025

Weiss Korea Opportunity Fund Ltd. (the “Company”) has today released its Half-yearly Financial Report for the period ended 30 June 2025. The Report will shortly be available for inspection via the Company's website www.weisskoreaopportunityfund.com.

Company Performance

					As at		As at
					30 June 2025		31 December 2024
					£		£
Total Net Assets					112,585,886		96,960,467
NAV per share					1.63		1.40
Mid-Market Share price					1.52		1.36

					Since Managed Wind-Down		WKOF Inception to Managed Wind-Down
NAV Return					20.3%		79.2%
Benchmark Return					27.3%		41.4%
					As at		A s at
					30 June 2025		31 December 2024
Portfolio Discount*					22.7%		46.0%
Share Price Discount					(6.8%)		(3.2%)
Fund Dividend Yield					2.7%		3.8%
Average Trailing 12-Month P/E Ratio of Preference Shares Held					9.2x		6.0x
P/B Ratio of Preference Shares Held					0.3		0.3
Annualised Total Expense Ratio					2.5%		2.0%

*Since Managed Wind-Down

Performance since the start of Managed Wind-down on 15 April 2025 to 30 June 2025 is calculated on the basis of the Net Asset Value per Ordinary Share of WKOF. The value of WKOF NAV per share performance since Managed Wind-down represents a total return, inclusive of all dividends paid to WKOF Shareholders since Managed Wind-down. The NAV per share may differ from the price at which shares of WKOF may be purchased or sold on AIM.   Performance of NAV per share during any specific period may therefore not be reflective of the returns an investor would receive by investing in shares of WKOF during such period. For WKOF, this return includes all dividends paid to WKOF’s Shareholders and assumes that these dividends were reinvested in WKOF’s Shares at the next date for which WKOF reports a NAV, at the NAV for that date.

*Portfolio Discount

The portfolio discount represents the discount of WKOF’s actual NAV to the value of what the NAV would be if WKOF held the respective common shares of issuers rather than preference shares on a one-to-one basis.

As at close of business on 22 September 2025, the latest published NAV per Share was £1.62 and the Share Price was £1.50.

Chair’s Report

For the period ended 30 June 2025

Company Performance

During the period, the Company announced its intention to enter into Managed Wind-down, which was approved by Shareholders on 14 April 2025. During the period 1 January 2025 to the commencement of the Managed Wind-down (14 April 2025), WKOF’s NAV in pounds Sterling (“GBP”) decreased by -1.04%, including reinvested dividends, compared to the reference MSCI South Korea 25/50 Net Total Return Index (the “Korea Index”), which appreciated by 0.2%.   Performance since the Managed Wind-down is detailed in the Investment Manager’s report.

Dividend

The Directors declared an interim dividend of 4.0788 pence per share in May 2025 to distribute the income received by WKOF in respect of the period ended 30 April 2025. This dividend was paid to all Shareholders on 23 June 2025.  

Compulsory Redemption

On 25 June 2025, the Company announced its intention to return £70 million to Shareholders by way of a compulsory redemption of Shares, in accordance with the terms of the Managed Wind-down previously approved by Shareholders. The redemption was executed following the close of business on 9 July 2025, with 42,931,567 Shares redeemed at a price of 163.05 pence per Share. Redemption proceeds were paid on 23 July 2025. All redeemed Shares were cancelled, and the remaining Shares were redesignated under the new ISIN: GG00BT26K977.

Future Redemptions

As separately announced today, the Company is pleased to confirm that it intends to return £35 million to Shareholders by way of a second compulsory redemption of shares. The second redemption is expected to be executed following the close of business on 7 October 2025 with proceeds paid on or around 21 October 2025.   Further details of this redemption are set out in the separate announcement.

Subject to market conditions and other factors, we currently anticipate the liquidation of the Company and a final compulsory redemption to occur in the months following completion of the second compulsory redemption. We are mindful of managing the impact of costs on a diminishing portfolio of assets and will seek to liquidate the Company in a cost-effective manner. Shareholders will be closely informed of developments. It is also noted that the Company will be required to de-list before liquidation can take place.

I look forward to communicating with you about WKOF’s further progress over the coming months. If any Shareholders wish to speak with the Board, please contact Singers, and we will be happy to answer any questions you may have.

Krishna Shanmuganathan

Chair

23 September 2025

Investment Manager’s Report

For the period ended 30 June 2025

Managed Wind-down of the Fund

As discussed in last year’s Annual Report, we notified WKOF’s Board of Directors in November 2024 that we believed the opportunity set and strategy for the fund continuing in its current form was less attractive than it had been in the past, including at WKOF’s inception in 2013. Moreover, we did not think this change in circumstances was likely to improve in the foreseeable future. Our assessment was based on a number of factors:

• Several large and more liquid preference shares had their discounts narrowed to the point where they were no longer attractive investments for the fund. Consequently, the pool of more liquid preference shares available for investment decreased.
• South Korea's continued efforts to open its financial markets to foreign investors meant that the Company's holdings could now be replicated in more cost-effective ways than through the Company itself.
• It was felt that given the above and the performance over the last two years that more shareholders would be likely to consider taking up the realisation opportunity which was due to take place this year. If this had happened, the overhead cost per share to investors would increase, potentially to an uneconomic and unacceptable level.

The Board subsequently commenced a strategic review to consider the future of the Company and to explore the strategic options available, including a change of investment mandate and/or a potential combination of the Company’s assets with another suitable investment company or fund. The shortlisted proposals were thoroughly assessed and meetings were held with interested parties. However, due to the complexities associated with the shortlisted proposals that came to light in the detailed discussions, combined with differing views of Shareholders, the Board reached the decision that a Managed Wind-down was the fairest proposal and would be in the best interests of the Company and its Shareholders as a whole.

Shareholders approved the Managed Wind-down at an Extraordinary General Meeting on 14 April 2025, and the Company formally began the wind-down process. We are pleased to report the Company made a distribution of GBP 70.0 million via compulsory redemption on 9 July (paid on 23 July) with minimal market impact.

WKOF Performance Attribution

Prior to the Managed Wind-down, WKOF’s returns (on a currency-neutral basis) were driven by five primary factors:

• The performance of the Korean equity market generally as indicated by the Korea Index;
• The discounts of the preference shares WKOF holds narrowing or widening relative to their corresponding common shares;
• The performance of the common shares (which correspond to the preference shares held by WKOF) relative to the performance of the Korean equity market;
• Excess dividend yields of the preference shares held by WKOF; and
• Fees, expenses and other factors.

In order to compare WKOF’s relative return to the Korea Index, we report the attribution of these aforementioned factors to Company’s performance from inception until the date of the Managed Wind-down (14 April 2025). Since the Managed Wind-down, WKOF’s returns have additionally been driven by the presence of cash-equivalent instruments in the portfolio, which have been accumulated to fund distributions.

Performance Attribution Table

Return Component	Inception to Managed Wind-down	Since Managed Wind-down
The Korea Index	57.9%	27.3%
Discount Narrowing (Widening) Of Preferred Shared Owned	72.4%	N/A
WKOF common Shares vs. The Korea Index	-24.6%	N/A
Excess Dividend Yield of Preferred Shares Owned	14.5%	N/A
Fees, Expenses and Others	-40.8%	N/A
NAV Performance	79.2%	20.3%

Since the Managed Wind-down, WKOF increased its holdings of cash and cash equivalents and decreased its holdings of Korean preference shares. Given the recent market rally in Korea’s equity markets, WKOF’s NAV performance has lagged The Korea Index.

WKOF Inception to Managed Wind-down performance is calculated from 14 May 2013 through 14 April 2025, and on the basis of the Initial Net Asset Value per Ordinary Share of WKOF.

Performance since the start of Managed Wind-down on 15 April 2025 until the last day of the relevant month. Performance for other periods, while available upon request, is not considered relevant in light WKOF’s current investment objective.

Hedging

Prior to the Managed Wind-down performance, WKOF pursued its investment strategy with a portfolio that was generally long-only. However, as further described in earlier Annual reports, the Board approved a hedging strategy intended to reduce exposure to extreme events that, earlier, would have been catastrophic to its Shareholders' Investments in WKOF because of political tensions in Northeast Asia.

WKOF limited its use of hedging instruments to the purchase of credit default swaps (“CDS”) and put options on the MSCI Korea 25/50 Index. As noted in the 2024 Annual Report, we expected WKOF’s exposure to CDS to gradually decrease during the Managed Wind-down process. As of 30 June 2025, WKOF has no exposure to CDS.

Concluding Remarks

Thank you to our long-term shareholders. We are proud of WKOF’s performance during the 12 years the Company has been listed on AIM, during which we have continually sought to do what is in the best interests of shareholders. We continue to believe the Managed Wind-down is in the best interest of our shareholders.

Weiss Asset Management LP

23 September 2025

Statement of Financial Position

As at 30 June 2025

						As at		As at
						30 June		31 December
						2025		2024
						(Unaudited)		(Audited)
						£		£
Assets
Financial assets at fair value through profit or loss						97,855,874		94,780,296
Other receivables						3,377,866		913,777
Margin account						587,037		1,041,581
Cash and cash equivalents						13,005,240		1,224,127
Total assets						114,826,017		97,959,781
Liabilities
Derivative financial liabilities						-		283,591
Other payables						2,240,131		715,723
Total liabilities						2,240,131		999,314
Net assets						112,585,886		96,960,467
Represented by:
Shareholders' equity and reserves
Share capital						33,912,856		33,912,856
Other reserves						78,673,030		63,047,611
Total Shareholders' equity						112,585,886		96,960,467
Net Assets Value per Ordinary Share						1.6254		1.3998

The Financial Statements were approved and authorised for issue by the Board of Directors on 23 September 2025.

Krishna Shanmuganathan       Gill Morris

Chair             Director

Statement of Comprehensive Income

For the period ended 30 June 2025

						For the period ended	For the period ended
						30 June 2025	30 June 2024
						(Unaudited)	(Unaudited)
						£	£
Income
Net gain on financial assets at   fair value through profit or loss						18,501,449	8,955,523
Net gain on derivative financial instruments at fair value through profit or loss						283,591	334,628
Net foreign currency losses						(78,141)	(317,329)
Dividend income						1,984,071	2,945,724
Bank interest income						8,655	2,788
Total income						20,699,625	11,921,334
Expenses
Operating expenses						(1,812,512)	(1,915,084)
Total operating expenses						(1,812,512)	(1,915,084)
Profit for the period before dividend withholding tax						18,887,113	10,006,250
Dividend withholding tax						(436,489)	(647,437)
Profit for the period after dividend withholding tax						18,450,624	9,358,813
Profit and total comprehensive income for the period						18,450,624	9,358,813
Basic and diluted earnings per Share						0.2664	0.1351

All items derive from continuing activities.

Following review of the AIC SORP and its impact on the Statement of Comprehensive Income, the Board has decided not to follow the recommended income and capital split. This is due to the fact that the Company’s dividend policy is not influenced by its expense policy.

Statement of Changes in Equity

For the period ended 30 June 2025

				Share	Other
				capital	reserves	Total
For the period ended 30 June 2025 (Unaudited)				£	£	£
Balance as at 1 January 2025				33,912,856	63,047,611	96,960,467
Total comprehensive income for the period				-	18,450,624	18,450,624
Transactions with Shareholders, recorded directly in equity
Distributions paid				-	(2,825,205)	(2,825,205)
Balance as at 30 June 2025				33,912,856	78,673,030	112,585,886
				Share	Other
				capital	reserves	Total
For the period ended 30 June 2024 (Unaudited)				£	£	£
Balance as at 1 January 2024				33,912,856	82,936,848	116,849,704
Total comprehensive income for the period				-	9,358,813	9,358,813
Transactions with Shareholders, recorded directly in equity
Distributions paid				-	(3,591,484)	(3,591,484)
Balance as at 30 June 2024				33,912,856	88,704,177	122,617,033

Statement of Cash Flows

For the period ended 30 June 2025

		For the period ended 30 June 2025		For the period ended 30 June 2024
		(Unaudited)		(Unaudited)
		£		£
Cash flows from operating activities
Profit and total comprehensive income for the period		18,450,624		9,358,813
Adjustments for:
Interest income		(8,655)		-
Net gains on financial assets at fair value through profit or loss		(18,501,449)		(8,955,523)
Exchange losses on cash and cash equivalents		235,138		557,166
Net gains on derivative financial instruments at fair value through profit or loss		(283,591)		(334,628)
Increase in receivables excluding dividends		(1,539,090)		(13,594)
(Decrease)/increase in other payables excluding withholding tax		(109,933)		172,882
Dividend income net of withholding taxes		(1,547,582)		(2,298,287)
Dividend received net of withholding taxes		2,256,924		3,358,429
Bank interest received		8,655		-
Purchase of financial assets at fair value through profit or loss		(76,471,607)		(39,218,509)
Proceeds from the sale of financial assets at fair value through profit or loss		91,897,478		40,041,173
Net cash generated from operating activities		14,386,912		2,667,922
Cash flows from investing activities
Opening of derivative financial instruments		-		87
Closure of derivative financial instruments		-		(141)
Decrease/(increase) in margin account		454,544		(27,001)
Net cash generated from/ (used in) from investing activities		454,544		(27,055)
Cash flows from financing activities
Distributions paid		(2,825,205)		(3,591,484)
Net cash used in financing activities		(2,825,205)		(3,591,484)
Net increase/(decrease) in cash and cash equivalents		12,016,251		(950,617)
Exchange losses on cash and cash equivalents		(235,138)		(557,166)
Cash and cash equivalents at the beginning of the period		1,224,127		3,364,287
Cash and cash equivalents at the end of the period		13,005,240		1,856,504

For further information, please contact:

Singer Capital Markets Limited James Maxwell/ James Fischer – Nominated Adviser James Waterlow – Sales	+44 20 7496 3000
Northern   Trust   International   Fund Administration Services (Guernsey) Limited Company Secretary	+44 1481 745001

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