Shareholders of The Korea Fund are being asked in a proxy statement to approve a joint venture between Scudder Kemper Investments of Boston and Daewoo Capital Management of Seoul, South Korea that would create Scudder Investments Korea, a new investment adviser to the fund, Scudder has announced.

The deal would mean the replacement of Daewoo Capital Management as the fund's adviser and would require Scudder to acquire certain assets currently held by Daewoo for an undisclosed amount. The deal is expected to take place by the middle of the year, according to Scudder.

The partnership could mean The Korea Fund will begin investing in higher risk stocks, said John Lee, the fund's portfolio manager, in a statement.

"There are substantial opportunities for investment in fast-growing companies that aren't listed on the Korea Stock Exchange, but which may offer the potential for superior returns," said Lee.

The Korea Fund is a closed-end fund with approximately $1.2 billion in assets under management.

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