2023-06-23 05:52:57
[딜사이트 강동원 기자] The Korean stock market was not included in the Morgan Stanley Capital International (MSCI) Developed Market (DM) Index. English disclosure services to expand accessibility to foreign investors received positive reviews, but this is because they received low scores due to the absence of an offshore foreign exchange market.
According to MSCI on the 22nd (local time), as a result of the annual market classification in 2023, there was no issue related to the Korean index belonging to the emerging market (EM) index. MSCI classifies stock markets around the world into developed countries (DM), emerging countries (EM), and frontier (FM). When incorporated into the DM Index, it was expected that global fund funds would flow in and resolve the ‘Korea discount’.
In order for the Korean stock market to be included in the DM Index, it must be listed on the watch list for at least one year, but this time it was not included in the list of candidates. The Korean stock market is expected to re-challenge for inclusion in the DM Index in June next year. If you enter the candidate group at that time, the index incorporation will be officially announced in June 2025, and the actual incorporation will take place the following year.
In the market, in the market accessibility evaluation conducted by MSCI ahead of market reclassification earlier this month, out of 18 items evaluating investor accessibility to the Korean stock market, 6 items, including information flow, presented negative opinions (improvement needed). The transfer was skeptically anticipated.
MSCI pointed out that the Korean stock market does not have an ‘offshore foreign exchange market’ in which foreign exchange transactions can be made by converting won into foreign currencies, and restrictions on the domestic foreign exchange market continue. While giving positive evaluations to the foreign investor registration system and English disclosure, they expressed their opinion that they would re-evaluate when the related system is fully implemented.
MSCI explained, “We welcome the proposed measures to improve access to the Korean stock market for foreign investors and will monitor the effectiveness of implementation of the system in the future.”
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