Seoul: South Korea has taken a series of measures to improve foreign accessibility to its equity and currency markets, but underlying accessibility issues still remain, the global index provider Morgan Stanley Capital International (MSCI) said Friday. "In Korea, authorities have continued implementing the reform agenda introduced in prior years, with additional measures announced across several areas. However, underlying accessibility issues remain unresolved," the MSCI said in its global market accessibility review report.
According to Yonhap News Agency, South Korea has moved to implement measures, including the launch of a 24-hour foreign currency market later this year, to align its foreign exchange framework with global practice. However, a fully deliverable offshore currency market is still not yet available, the report noted. Additionally, South Korea lifted a short selling ban in early 2025 and implemented a new naked short selling detection system. Despite the framework being in use, friction has emerged in practice, leading to ongoing refinements to operational processes and infrastructure.
The MSCI also highlighted that derivative product linked to Korean indexes have been launched on international exchanges, broadening the investment instruments available to international investors. Earlier this year, South Korea announced a comprehensive road map aimed at securing its inclusion in the developed market index of the MSCI. This includes plans to operate the country's foreign exchange market on a 24-hour basis. The finance ministry indicated that if these measures are implemented effectively, South Korea could be placed on MSCI's watch list in the annual market classification review later this year, with a decision on its inclusion in the developed market index possible in June 2027.