"The world is it's own magic."
From a Western Philosophical standpoint this lands firmly in metaphysics- the study of what is. It's a declarative statement about the world. However if we move beyond the closed system of symbolic logic then it drifts toward Epistemology, under Semiotics (the study of signs, signifiers and symbolism).
This fits nicely with many traditional Eastern counterparts in Epistemology, like the Japanese tea ceremony, in which one sets a relatively spare room with one centerpiece for conversation. In this sort of reflexive understanding, suddenly the statement "The world is it's own magic" inverts and we understand that it is us who are magic and that we find this in the world through our understanding of magic. That our knowledge of the meaning of the word magic and what it signifies leads us to know wonder and that simply contemplating this very statement will lead us down a road to more understanding and therefor more magic in our world.
It's hard to properly represent the Eastern Epistemology in a soliloquy, since it is an interchange of personal understandings until a greater knowledge is attained, but that is - perhaps - the point of the koan. It's designed for individual study by a master.
Let's try another (been on a Bob Ross tear here, so most of this was mentally narrated with his tones, join in the fun here and find that there are no mistakes... only happy little accidents...)
Question 3 (at Random):
Even and the Horses
What can you draw from this, very E. E. Cummings, statement?