Korea's inclusion in the Morgan Stanley Capital International (MSCI) Developed Markets (DM) index has failed once again. The government stated that "if we continue to steadily pursue foreign exchange and capital market reforms, we expect Korea will naturally be included in the MSCI developed index," but the actual inclusion is expected to be three years away.
In the '2026 Annual Market Classification Results' announced on the 23rd (local time), MSCI classified Korea's stock market as an emerging market index rather than placing it on the Developed Market Index Watch List. This is based on the judgment that Korean market accessibility has not yet met developed market standards, such as the exchange of Korean won remaining limited in offshore foreign exchange markets.
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NH Investment & Securities
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Researcher Kim projected the future MSCI Developed Market Index inclusion scenario as follows: ▲Q1 2027, completion of institutional reform roadmap ▲June 2027, Watch List listing and confirmation of institutional sustainability for approximately 1.5 years ▲June 2028, announcement of developed market index inclusion ▲June 2029, actual inclusion. This is because an index must remain on the Watch List of candidate countries for at least one year to be included in the MSCI Developed Market Index.
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Another miss, then.
