MSCI Flags 2 South Korea Market Hurdles, Impeding Developed-Market Upgrade

1 articles · Updated · Bloomberg · Jun 19

MSCI said South Korea still falls short on market accessibility in its annual review, dimming hopes that recent reforms would speed a future upgrade to developed-market status.
Two issues remain central: the won still lacks a fully deliverable offshore market, and short-selling settlement processes remain inefficient for foreign investors.
MSCI nonetheless cited progress, including plans for a 24-hour foreign-exchange market and broader steps by Seoul to improve access for overseas funds.
The assessment is a setback for the government and global investors because MSCI’s review shapes whether South Korea can eventually move up from emerging-market classification.