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http://www.OptionPundit.net

This is certainly something that investors are always worried about, and companies usually do a good job of explaining the details in their websites or filings — KF is no different, check out their FAQs on the Capital Gains Distribution from the list here: http://www.thekoreafund.com/koreaFund/news/newsMedia.jsp

Best,
SG

I realize that Wikipedia is not necessarily the most authoritative source. But the following wiki excerpt at least shows where the difference arises in our respective interpretations of when one would have to buy KF to get the dividend.

I’m not wedded to my position, but this is why I hold it:

– Begin quote –

Special or Significant Dividend Payments.

The amount of the Dividend is declared Special or Significant in relation to the stock price. For this reason the ex-dividend date is set one stock trading day after the payment date. The stock will trade on an ex-distribution basis, adjusted for the amount of the dividend paid one trading day after the payment date. The determining factor for a Special or Significant Dividend is usually when the dividend is 20% or greater in relation to the underlying price of the stock/security.

To be entitled to a Special or Significant Dividend you need to be a stockholder on the Record Date. To be a stockholder on the Record Date your purchase would have needed to be made a minimum of three stock trading days prior to the Date of Record or Record Date.

In the case of Special or Significant Dividends, the stock trades without the dividend from the Record Date, thru the Payment Date, then adjust for the dividend paid and starts trading on an ex-distribution basis one stock trading day after the Payment Date. To be entitled to receive the dividend, it is required that you be a stockholder on the Record Date and hold your stock thru the Payment Date in order to receive the dividend. When a Special or Significant Dividend is being paid selling your stock between the Record Date and Payment Date relinquishes your right to the dividend.

The earliest you can sell your stock and still be entitled to the Special or Significant Dividend is one day after the Payment Date, or the date the stock begins trading on an ex-distribution basis.

– End quote –

1) Because the ex div date is after the distribution date, everyone who buys shares before November 28 will get the dividend — though the record date has passed, anyone selling shares now is also selling the right to get the dividend. The record date is largely meaningless in this case.
and
2) It’s true that the shares don’t have to drop exactly $15.94 on the ex div day (November 29), but they will almost certainly open at almost exactly that drop. Since they trade freely, it’s true that people are free to buy and sell at any price, but the open will be probably be precisely $15.94 less than they closed at on November 28 unless something crazy happens to Korea or to Samsung overnight.