South Korea will continue its efforts to reach MSCI Developed Market status after the index provider kept the country in the Emerging Market category, the finance ministry said Wednesday.
MSCI announced overnight that it would keep South Korea in the Emerging Market category and not place it on the Watch List for Developed Market status. It cited limited convertibility of the Korean won in offshore markets and insufficient onshore liquidity during extended FX trading hours.
The Ministry of Finance and Economy said MSCI had acknowledged the government’s efforts to improve foreign exchange and capital markets. The ministry noted that some remaining tasks are still underway and that the market needed time to fully reflect completed reforms.
South Korea aims for inclusion in the Developed Market category in 2027. It has set 39 key tasks and plans to finish 28 of them by the end of this month. The ministry said it will continue communicating with overseas investors and reflecting their feedback in policies.
“MSCI acknowledges the measures announced by Korean market authorities,” the index provider said. “However, investors have communicated that the underlying issues have not been fully resolved.” MSCI added that it will continue monitoring implementation and engaging with market participants and Korean authorities.
