Michele Redman eagled the final hole Saturday to shoot a 63 and finish alone in third place at 10-under-par 134.
There was heavy fog when the morning groups were on the course Saturday and play was delayed for an hour and 15 minutes. The afternoon tee times got some weather problems as well because threatening weather resulted in a 52-minute stoppage.
Kung, who shot a 64 on her 22nd birthday Friday, collected birdies at two and nine but built her lead up to three strokes when she knocked a lob-wedge to three feet to set up birdie at the 11th.
Kung recorded her first bogey of the tournament at the 12th hole when her approach landed in water. She dropped and hit her fourth to three feet to save bogey.
At the last hole, Kung ran home a four-footer for birdie to take sole possession of first until Han matched her a short time later.
Kung's big problem Saturday was with the flat stick as she hit approaches inside of 15 feet 11 times in the second round.
'I was still able to get it inside 15 feet, but not close enough for birdies, and in the afternoon, the greens got some spike marks on it,' said Kung, who won this year's LPGA Takefuji Classic. 'I couldn't control it, but I was able to hit a couple close, close ones, like three feet from the hole. Those were birdie putts.'
Han tallied four birdies in his first 11 holes but climbed to the top of the leaderboard with her play late on the second nine. She drained a 20-foot birdie putt at the 15th and a pair of eight-footers at 17 and 18 to polish off her round of 65.
'I had a good play last year too here, and I will just enjoy my play tomorrow,' said Han, who finished second to Mi-Hyun Kim in 2002. 'My putting was pretty good, and my irons were pretty good today.'
Han can also pick up victory No. 2 of 2003 Sunday as she captured the Sybase Big Apple Classic in mid-July.
Redman racked up seven birdies before heading to the par-5 ninth tee. She hit a solid drive then nailed a 7-wood to three feet to set up eagle and take third place for herself.
'I hit it really good. I hit my irons so good,' said Redman. 'I don't think I was really like 15 feet outside the hole today. It was pretty fun. I just hit it great.'
Wendy Ward (67), Lorie Kane (68), Catriona Matthew (68) and Jill McGill (69) share fourth place at 8-under-par 136. Kim carded a 66 Saturday and is tied for eighth with Angela Buzminski, who posted a 68 in the second round. The duo stands at minus-7.
The 36-hole cut fell at even-par 144 and among the notable players who failed to make Sunday's final round were: Laura Diaz (145), Gloria Park (146) and Dottie Pepper (147).