economy
MSCI keeps South Korea as emerging market, delays Indonesia review amid downgrade risk
The review comes amid hopes that Seoul could be included in MSCI's Developed Markets watchlist.
TL;DR
- MSCI has maintained South Korea's 'emerging market' status, failing to include it on the Developed Markets watchlist.
- Key barriers for South Korea's upgrade include limited Korean won convertibility and a rigid investor identification system.
- Indonesia's market status review has been extended to November amid concerns about market accessibility and potential for a downgrade.
- South Korea is preparing to launch 24-hour dollar-won spot market trading to open its foreign exchange market.
- Analysts suggest an upgrade could help resolve the 'Korea discount' affecting South Korean stock valuations.