UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number:                811-08002                                 

KOREA EQUITY FUND, INC.
(Exact name of registrant as specified in charter)

Worldwide Plaza
309 West 49th St
New York, New York 10019
(Address of principal executive offices)

Mr. Yutaka Itabashi
Korea Equity Fund, Inc.
Worldwide Plaza
309 West 49th St
New York, New York 10019
(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 833-0018
 
Date of fiscal year end:          October 31, 2014                                 

Date of reporting period:      November 1, 2013 – January 31, 2014
 
 
 
 
 
 
Item 1.  Schedule of Investments
 
KOREA EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS
IN SECURITIES OF UNAFFILIATED ISSUERS
January 31, 2014
 
                           
% of
 
               
Market
   
Unrealized
   
Net
 
   
Shares
   
Cost
   
Value
   
Gain or Loss
   
Assets
 
KOREAN EQUITY SECURITIES
                             
Chemicals
                             
Dongsung Finetec Corporation
    151,605     $ 675,691     $ 1,423,080     $ 747,389       1.7  
Superconducting materials
                                       
Total Chemicals
            675,691       1,423,080       747,389       1.7  
                                         
Electronic Appliances and Components
                                       
Samsung Electronics Co., Ltd.
    9,328       6,513,438       11,042,014       4,528,576       12.9  
Consumer electronics, computers, and telecommunications
                         
SK Hynix Inc
    223,980       5,368,607       7,840,160       2,471,553       9.1  
Semiconductors
                                       
Total Electronic Appliances and Components
      11,882,045       18,882,174       7,000,129       22.0  
                                         
Financing Business
                                       
Hana Financial Group Inc
    66,330       2,525,632       2,508,898       (16,734 )     2.9  
Banking-related financial services
                                       
Samsung Card Co., Ltd.
    45,860       1,622,298       1,478,041       (144,257 )     1.7  
Credit card services
                                       
Shinhan Financial Group Co., Ltd.
    84,490       3,202,249       3,566,941       364,692       4.2  
Consumer and commercial-related financial services
                         
Total Financing Business
            7,350,179       7,553,880       203,701       8.8  
                                         
Information and Communication
                                 
NCsoft Corporation
    26,764       4,619,608       4,913,165       293,557       5.7  
Online gaming
                                       
Total Information and Communication
      4,619,608       4,913,165       293,557       5.7  
                                         
Insurance
                                       
Dongbu Insurance Co., Ltd.
    77,098       2,967,519       3,835,970       868,451       4.5  
 Non-life insurance
                                       
Samsung Fire & Marine Insurance Co., Ltd.
    9,213       1,663,454       2,113,015       449,561       2.5  
 Non-life insurance
                                       
Samsung Life Insurance Co., Ltd.
    18,706       1,746,013       1,790,487       44,474       2.0  
 Life insurance
                                       
Total Insurance
            6,376,986       7,739,472       1,362,486       9.0  
                                         
Iron and Steel
                                       
Korea Zinc Co., Ltd.
    11,360       3,006,203       3,656,010       649,807       4.2  
 Non-ferrous metals
                                       
Total Iron and Steel
            3,006,203       3,656,010       649,807       4.2  
                                         
                                         
Other Products
                                       
Interojo Co Ltd
    89,143       1,283,579       1,768,334       484,755       2.1  
Manufactures and sale of contact lens
                                       
Lock&Lock Co., Ltd.
    93,780       2,077,864       1,925,365       (152,499 )     2.2  
Plastic food storage
                                       
Total Plastic Products
            3,361,443       3,693,699       332,256       4.3  
                                         
                                         
Services
                                       
CJ O Shopping Co., Ltd.
    3,448       998,017       1,284,737       286,720       1.5  
Online retail marketing company
                                       
Coway Co. Ltd.
    54,760       2,353,833       3,514,574       1,160,741       4.1  
Manufactures environment-related products
                                 
Total Services
            3,351,850       4,799,311       1,447,461       5.6  
 
 
 
 
KOREA EQUITY FUND, INC.
SCHEDULE OF INVESTMENTS
IN SECURITIES OF UNAFFILIATED ISSUERS
January 31, 2014
 
                                   
% of
 
                   
Market
   
Unrealized
   
Net
 
   
Shares
   
Cost
   
Value
   
Gain or Loss
   
Assets
 
Textiles and Apparel
                                       
Youngone Corporation
    59,094     $ 1,974,361     $ 2,106,772     $ 132,411     $ 2.5  
Outdoor sportswear and shoes
                                       
Total Textiles and Apparel
            1,974,361       2,106,772       132,411       2.5  
                                         
Transportation
                                       
AJ Rent a Car Co Ltd *
    97,090       1,097,804       1,270,518       172,714       1.5  
 Auto rental company
                                       
Daewoo Shipbuilding & Marine Engineering Co., Ltd.
    62,100       1,985,423       1,981,347       (4,076 )     2.3  
 Shipbuilding
                                       
Total Transportation
            3,083,227       3,251,865       168,638       3.8  
                                         
Transportation Equipment
                                       
Hyundai Mobis
    31,154       5,567,640       8,931,518       3,363,878       10.4  
 Automotive service components
                                       
Hyundai Motor Company
    7,170       1,553,510       1,554,933       1,423       1.8  
Passenger cars, trucks, autoparts, and commercial vehicles
                         
Hyundai Motor Company - Preferred
    25,635       2,029,344       2,880,444       851,100       3.3  
Passenger cars, trucks, autoparts, and commercial vehicles
                         
Hyundai Motor Company - 2nd Preferred
    13,246       1,084,458       1,598,619       514,161       1.9  
Passenger cars, trucks, autoparts, and commercial vehicles
                         
Kia Motors Corporation
    19,279       1,071,164       962,782       (108,382 )     1.1  
Passenger cars, mini-buses, trucks, and commercial vehicles
                         
Kolao Holdings
    52,661       1,120,228       1,093,340       (26,888 )     1.3  
Retails cars and provides repairs and maintenance
                                 
Total Transportation Equipment
      12,426,344       17,021,636       4,595,292       19.8  
                                         
Wholesale
                                       
Hyundai Greenfood Co., Ltd.
    181,650       2,810,967       3,032,232       221,265       3.5  
Wholesale and distributon of food
                                       
iMarketKorea Inc.
    47,320       1,097,485       1,275,655       178,170       1.5  
Maintenance, repair, and operations procurement services
                         
Samchuly Bicycle Co., Ltd.
    45,692       746,499       895,830       149,331       1.0  
 Manufactures and sells bicycles
                                       
Total Wholesale
            4,654,951       5,203,717       548,766       6.0  
                                         
TOTAL SOUTH KOREAN EQUITY SECURITIES
    $ 62,762,888     $ 80,244,781     $ 17,481,893       93.4  
                                         
                                         
INVESTMENTS IN FOREIGN CURRENCY
                         
South Korea Won
                                       
Non-interest bearing account
      1,453,033       1,445,554       -7,479          
TOTAL INVESTMENTS IN FOREIGN CURRENCY
      1,453,033       1,445,554       -7,479       1.7  
                                         
                                         
TOTAL INVESTMENTS
          $ 64,215,921     $ 81,690,335     $ 17,474,414       95.1  
                                         
OTHER ASSETS LESS LIABILITIES, NET
                    4,222,268               4.9  
                                         
NET ASSETS
                  $ 85,912,603             $ 100.0  
 
* Non-Income Producing Security


Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost was $17,934,729.
Aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value was $452,836.


Portfolio securities and foreign currency holdings were translated at the following exchange rate as of January 31, 2014
 
 
Korean won
 
1,081.31  
=$1.00
 
 
 
 
 
 
The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of January 31, 2014. 

Level 1 – quoted prices in active markets for identical investments.

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
 
Level 3 – (including the Fund’s own assumptions in determining the fair value of investments).
 
Level
 
Investments in
 
   
Securities
 
Level 1
     
      Equity Securities
  $ 80,244,781  
      Foreign Currency
    1,445,554  
Level 2
       
Level 3
       
Total
  $ 81,690,335  

During the quarter ended January 31, 2014, there were no transfers between Level 1 and 2 and the Fund did not hold any instruments which used significant observable inputs (Level 3) in determining fair value.
 
 
 
 

 
 
 
 


Item 2.  Controls and Procedures.

(a)   The Registrant’s Principal Executive Officer and Principal Financial Officer evaluated the Registrant’s disclosure controls and procedures within 90 days of the filing of this report and concluded that they were effective in providing reasonable assurance that the information required to be disclosed by the Registrant in its reports or statements filed under the 1934 Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
 
(b)   There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3.  Exhibits.

(a)   Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 are attached hereto as an exhibit.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
KOREA EQUITY FUND, INC.

 

By:   /s/ Yutaka Itabashi        
        Yutaka Itabashi, President
        (Principal Executive Officer)

Date:  March 26, 2014


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
 

 
By:   /s/ Yutaka Itabashi        
        Yutaka Itabashi
        (Principal Executive Officer)
 
Date:  March 26, 2014

By:   /s/ Amy J. Marose        
        Amy J. Marose, Treasurer
        (Principal Financial Officer)

Date:  March 26, 2014
 
 
 
 
 
 

Korea Equity Fund, Inc. (NYSE:KEF)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Korea Equity Fund, Inc. Charts.
Korea Equity Fund, Inc. (NYSE:KEF)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Korea Equity Fund, Inc. Charts.