MSCI Upgrade Bid Risks Backfiring for South Korean Stock Market

The video discusses South Korea's potential upgrade from an Emerging Market (EM) to a Developed Market (DM) by MSCI. It highlights the risks of foreign outflows if South Korea is upgraded, as it currently holds a significant portion of the MSCI EM index. The criteria for market classification include economic development, stock market size and liquidity, and market accessibility, with South Korea needing to improve the latter. The timing of the upgrade is uncertain, with predictions ranging from June to 2025, depending on MSCI's review and placement on the DM watch list.

What is a potential consequence for South Korea if it is upgraded to a Developed Market by MSCI?

• Increased foreign investment

• Increased domestic investment

• Decreased foreign investment

• No change in investment

Which of the following is NOT a criterion used by MSCI to classify markets?

• Political stability

• Economic development

• Market accessibility

• Stock market size and liquidity

What is the main issue preventing South Korea from being classified as a Developed Market by MSCI?

• Economic development

• Market accessibility

• Stock market size

• Political stability

When do some experts predict South Korea might be placed on the DM watch list?

• As soon as next June

• In the next five years

• In the next decade

• By the end of this year

What is the minimum duration South Korea must be on the DM watch list before a final upgrade?

• One year

• Six months

• Two years

• Three years