Korean Bourse Misses Inclusion in Developed Market Index

      June 27, 2022 13:18

      The Korean stock exchange has once again missed inclusion in Morgan Stanley Capital International's developed markets index.

      Last year's spectacular bull run stoked optimism that this might be the year its bid succeeds, but was not enough to gain inclusion.

      Korea is still considered an emerging market. The Korea Economic Research Institute said that the upgrade would bring W18 trillion to W61 trillion worth of foreign investment to the country's stock market because most global investment firms use the MSCI Developed Markets Indexes as a gauge.


      But Korea was again not included in MSCI's watchlist for developed markets published last Friday. A stock market is usually on the watchlist for more than a year in order to be included in the index.

      The previous government started the bid for inclusion on the index in November last year.

      Korea lacks English-language information for foreign investors and will need to expand short-selling, which is now allowed only for Korea Composite Stock Price Index 200 and junior Kosdaq 150 shares.

      The absence of a 24-hour foreign currency market is being cited as another weakness.

      An official at the Ministry of Economy and Finance said, "The Korean market has to become more accommodating to foreign investors to be included." 

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