Korea's stock market failed to be included in the Morgan Stanley Capital International (MSCI) developed markets (DM) index.
In the 2026 annual market classification results released on the 23rd (local time), MSCI did not place the Korean stock market on the watchlist for the developed markets index. MSCI cited reasons including the limited convertibility of the won in the offshore foreign exchange market.
MSCI said, "We acknowledge the measures released by Korea's market authorities to address the long-standing concerns raised regarding the Korean market," but added, "Investors, however, responded that the fundamental issues have not been resolved."
MSCI reclassifies country market ratings every June. To be included in the developed markets index, a market must first be placed on the watchlist and then go through an evaluation process of at least one year before a decision on inclusion is made.
Earlier, Korea had been classified as an emerging market since 1992 and was placed on the watchlist in 2008. However, inclusion was not granted due to insufficient market accessibility, and Korea was removed from the watchlist in 2014.