Filing Details

(a). This statement is being filed by City of London Investment Group PLC ("CLIG") and City of London Investment Management Company Limited ("CLIM," and together with CLIG, the "Reporting Persons").

(b). The business address and principal executive offices of CLIG are 77 Gracechurch Street, London, EC3V 0AS, England.  The directors and executive officers of CLIG, their business addresses and present principal occupation or employment are set forth on Annex A attached to this Schedule 13D.  The business address and principal executive offices of CLIM are 77 Gracechurch Street, London, EC3V 0AS, England.  The directors and executive officers of CLIM, their business addresses and present principal occupation or employment are set forth on Annex A attached.

(c).  CLIM is primarily an emerging markets fund manager, which specializes in investing in closed-end investment companies and is a registered investment adviser under Section 203 of the Investment Advisers Act of 1940.  CLIM is controlled by CLIG.  CLIM is principally engaged in the business of providing investment advisory services to various public and private investment funds, including The Emerging World Fund ("EWF"), a Dublin, Ireland-listed open-ended investment company, Emerging Markets Country Fund ("GBL"), a private investment fund organized as a Delaware business trust, Investable Emerging Markets Country Fund ("IEM"), a private investment fund organized as a Delaware business trust, Emerging Markets (BMI) Country Fund ("BMI"), a private investment fund organized as a Delaware business trust, Emerging (Free) Markets Country Fund ("FREE"), a private investment fund organized as a Delaware business trust, The EM Plus CEF Fund ("PLUS"), a private investment fund organized as a Delaware business trust, Emerging Markets Global Fund ("EMG"), a private investment fund organized as a Delaware business trust, Emerging Markets Investable Fund ("EMI"), a private investment fund organized as a Delaware business trust, Emerging Markets Free Fund ("EMF"), a private investment fund organized as a Delaware business trust, Global Emerging Markets Fund ("GEM"), a private investment fund organized as a Delaware business trust, and unaffiliated third-party segregated accounts over which CLIM exercises discretionary voting and investment authority (the "Segregated Accounts"). EWF, GBL, IEM, BMI, FREE, PLUS, EMG, EMI, EMF and GEM are collectively referred to herein as the "City of London Funds."

(d). None of the Reporting Persons has, during the last five years, been convicted in any criminal proceeding.

(e). None of the Reporting Persons has, during the last five years, been a party to any civil proceeding commenced before a judicial or administrative body of competent jurisdiction as a result of which it or he was or is now subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

(f). City of London Investment Group PLC, (CLIG) and City of London Investment Management Company Limited (CLIM) are companies incorporated under the laws of England and Wales.

Mr. Rodney A. Buck, Chairman

Korea Equity Fund, Inc.

1857 West County Road

Calais, Vermont 05648

Dear Mr. Buck,

City of London Investment Management Company Limited ("City of London") is, on behalf of its clients, a long-term investor in the Korea Equity Fund, Inc. (the "Fund").  We are writing because there has been no public announcement regarding the status of the 2016 Annual Meeting of Shareholders since it was adjourned.

The meeting scheduled for October 31, 2016, was described as having been adjourned "due to lack of sufficient votes to act upon the election of [the three Directors on the proxy ballot]."  We believe that statement may have been inaccurate. The meeting was quorate and there were thus "sufficient" votes cast to "act upon the election."  The problem for the Board of Directors was that the Directors were unhappy with the result of the election.

The October 31^st press release went on to state, "During the period of the adjournment, the Fund will continue to solicit proxies from its shareholders."  A majority of the Board of Directors had decided to spend Fund assets – owned by the Shareholders of the Fund to whom the Directors owe a fiduciary duty – to attempt to solicit sufficient votes to overcome the results of the election that would rightfully have taken place on October 31^st.  We contend that the three Directors faced a potential conflict of interest and chose to protect their self-interests at that juncture.

One of those three Directors, David B. Chemidlin, had failed to garner a majority of votes cast at the previous 2015 Annual Meeting but had been held over by the Board of Directors as a 'zombie Director.' We suspect that the Board will attempt to follow the same path as last year to now permit 'zombie Directors' to remain in office.

On December 8, 2016, the Fund issued a press release regarding short-term and long-term capital gains distributions but failed to disclose the results of the proxy vote. In our opinion, the Board of Directors should be open, transparent and communicative to all Shareholders of the Fund regarding the current status of the proxy vote.

We contend that the Board of Directors of Korea Equity Fund, Inc. has used Shareholder assets in an attempt to further entrench itself. As a result, Shareholders should have no confidence in the Board of Directors. In our opinion, with the current relatively narrow discount, the market is demonstrating that investors see the Fund as a candidate for liquidation. The Fund has no future as an investment company. The Board of Directors should thus take steps immediately to liquidate the Fund and return the proceeds to Shareholders rather than continuing to squander Fund assets.