South Korea will likely be included in a key international authorities bond index run by FTSE Russell, beginning in November subsequent yr, the London-based group has mentioned, a choice anticipated to assist it appeal to vital overseas funding.
The nation will likely be added to FTSE Russell’s World Authorities Bond Index efficient with November 2025 index profiles and phased in over a one-year interval on a quarterly foundation as its market accessibility degree will likely be reclassified from 1 to 2, the group mentioned in a report launched on Tuesday.
The inclusion determination was made two years after the nation was positioned on its watch record.
“A number of initiatives meant to enhance the accessibility of South Korean authorities bonds for worldwide traders have been applied by South Korean market authorities, which have facilitated the success of the standards for a Market Accessibility Degree of two,” FTSE mentioned.
With a market worth of $29 trillion, the WGBI is a extremely sought-after benchmark that might appeal to substantial capital inflows from international traders.
South Korea is predicted to draw as a lot as 90 trillion received ($67 billion) of overseas funding by way of the inclusion, officers and specialists have mentioned.
FTSE Russell notes a set of market reform measures by the South Korean authorities as optimistic developments, together with the extension of buying and selling hours of the native forex, permitting third-party overseas alternate and the institution of a settlement system with Euroclear Financial institution and Clearstream to enhance entry by overseas traders to its authorities bond market.
“FTSE Russell congratulates the South Korean Ministry of Financial system and Finance on its efforts to develop and encourage international funding in its native authorities bond market by implementing modifications which have met the rigorous standards for WGBI inclusion, in addition to its ongoing dedication to addressing the sensible suggestions of worldwide bond traders taking part in its advanced market construction,” the report learn.
South Korea and India are the one nations among the many world’s prime 10 economies when it comes to nominal gross home product that haven’t been included within the bond index. India will be part of the FTSE Rising Markets Authorities Bond Index beginning September 2025.
FTSE Russell is a subsidiary of the London Inventory Trade Group that produces, licenses and markets inventory market indices. (Yonhap)
