South Korea Aims for 'Developed Recognition'

The video discusses the potential reclassification of South Korea from an Emerging Market (EM) to a Developed Market (DM) by MSCI. South Korea is a significant part of the EM benchmark, but if reclassified, it would represent a smaller portion of the DM benchmark. MSCI considers economic development, equity trading size, and market accessibility for classification. South Korea meets the first two criteria but faces challenges with market accessibility due to barriers for foreign investors. The South Korean government is working on reforms, and MSCI may soon place South Korea on the DM watch list, a step towards reclassification.

Why is there a risk of foreign outflows if South Korea joins the MSCI DM benchmark?

What percentage of the EM benchmark does South Korea currently account for, and how does this compare to the MSCI DM benchmark?

What are the three big criteria that MSCI considers when classifying a country as Emerging Market (EM) or Developed Market (DM)?

What barriers to foreign investors exist in South Korea that affect market accessibility?

What is the expected timeline for South Korea to potentially be placed on the DM watch list by MSCI?