Seoul: South Korea will announce a comprehensive roadmap later this year for its envisioned inclusion in the global index provider Morgan Stanley Capital International's (MSCI) developed market index, the finance ministry said Tuesday. The ministry revealed the plan during a kick-off meeting of a specially established task force comprising officials from the Ministry of Economy and Finance, the Bank of Korea, and major Korean financial companies.
According to Yonhap News Agency, MSCI recently decided to retain South Korea in the emerging market group. Market participants identified the limited convertibility of the Korean won in the offshore currency market as a significant barrier to reclassification to a developed market status. South Korea was initially put on the watch list in 2009 for a potential upgrade to developed market status and inclusion in the MSCI developed market index but was removed in 2014 due to issues such as limitations on currency-trading hours.
The finance ministry stated that its roadmap will include measures to enhance the foreign exchange trading system, investment regulations, and market infrastructure necessary for an upgrade in market status by MSCI. "We will use the push for inclusion in the MSCI developed market index as an opportunity to create an investment environment that meets global standards and further advance our foreign exchange and capital markets," First Vice Finance Minister Lee Hyoung-il said in a press release.