South Korea removed from MSCI Developed Markets Watch List

Posted Posted onJune 9, 2023 Comments0

South Korea has been placed on a watch list for inclusion in the Morgan Stanley Capital International (MSCI) Developed Markets Index토토사이트.

On Aug. 8 (local time), MSCI announced that South Korea is still classified as an emerging market (EM) in its 2023 market access assessment.

The MSCI Index is a global equity index published by Morgan Stanley Capital International, which categorizes stock markets into developed (DM), emerging (EM), and frontier (FM) markets based on their size and level of institutions. South Korea has been a member of the MSCI Emerging Markets Index since its inception in January 1992.

“This year, the Korean government is implementing mandatory English-language disclosure, which we will thoroughly evaluate with global institutional investors once fully implemented,” MSCI said in its review of foreign investor rights in Korean equities.

“In addition, the Korean government has announced plans to improve the structure of the foreign exchange market, with a pilot project expected to begin as early as next year,” he said, adding that “the impact of these measures will be thoroughly evaluated with global institutional investors once fully implemented.”

In addition, MSCI said it will evaluate the impact of the reforms, noting that Korean companies have been delaying dividend disclosures by two to three months after the finalization of the shareholder list and not providing expected dividends.

MSCI evaluates each country’s stock market annually based on economic size, stock market size, and market accessibility, and Korea’s stock market has been evaluated as having met the economic size and stock market size criteria but lacked market accessibility.

Korea has been on the MSCI Watch List since 2008, but was rejected for insufficient market access and has been off the list since 2014.

The government has been actively promoting its inclusion in the MSCI Developed Markets Index, abolishing the foreigner registration system, mandating English-language disclosures, and opening the foreign exchange market.

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