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.

When is MSCI expected to announce its market classification review, and what could be the implications for South Korea?

What are the expectations of fund managers regarding South Korea's potential upgrade to DM status?