This thesis examines whether discounts on closed-end mutual funds exist in Korea. Closed-end mutual funds in Korean market discounted about 3% in comparison with their net asset value. This study also shows whether discounts or premiums of closed-end funds reflect the market’s assessment of anticipated managerial performance and provides evidence that there is insignificant and positive relation between fund premium and future net asset value performance. In addition, the information contained in a discount is an incomplete prediction of the fund’s performance in Korea.