South Korea has again missed out on joining the waiting list for stock market upgrade by the Morgan Stanley Capital International (MSCI) despite government endeavors.

Korea, currently weighted in the MSCI emerging market index, needs to be on the watch list for minimum year for eventual upgrade to the developed market index.

Seoul would have to save hope until the next review in June 2023.

If it makes the candidate list next year, the Korean stock market could join the developed market index as early as in June 2025.

In a review report on Korean securities market, released prior to announcing its candidates for developed market index, MSCI pointed out that international investors had limited access to information, such as company report in English. It also found shorting option on Kospi 200 and Kosdaq 150 stocks to be too restricted, and international investors have limited access to local foreign exchange market.

Korean government has long strived to have Korean stock market move up to MSCI’s developed market index, which could help the country pull in more foreign capital. It has promised to make a number of changes in local stock market’s system, including extending local FX market’s operating hours gradually for around-the-clock operation.

By Pulse

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