South Korea to Continue Market Reforms After MSCI Developed Index Rejection

South Korea's government expressed its stance on the nation's stock market failing to be included in the MSCI developed market index, despite ongoing reform efforts. Officials stated that they will persistently pursue reforms in the foreign exchange and capital markets according to their own needs and schedule, believing this will naturally lead to inclusion in the MSCI developed market index.

The Ministry of Economy and Finance and the Financial Services Commission released a joint statement acknowledging that MSCI recognized the government's efforts and achievements in advancing the foreign exchange and capital markets. However, they understood that inclusion did not occur this year because some reform tasks are still in progress, and for completed tasks, it will take more time for the market to feel their effects.

"We will promptly operate regular communication channels with major overseas investors to review the actual utilization of improvement tasks and reflect on-site feedback," the government announced. MSCI's annual market classification review results for 2026 did not include the Korean stock market in the developed market category.