Key facts
- MSCI will maintain South Korea's classification as an emerging market.
- Limited convertibility of the Korean won was a primary reason for the decision.
- South Korea's finance ministry affirmed its commitment to ongoing reforms.
- The country targets achieving developed market status by 2027.
- The KOSPI opened 1.86% higher on June 24, 2026, despite a broader tech sell-off.
MSCI has decided to maintain South Korea's classification as an emerging market, citing limited convertibility of the Korean won in offshore currency markets as a key barrier. Despite ongoing reform efforts by the South Korean government, the index provider noted that remaining tasks need to be addressed before the country can be reclassified as a developed market.
South Korea's finance ministry stated that reforms are ongoing and will continue, with the country aiming to achieve developed market status under the MSCI index by 2027. MSCI acknowledged the efforts made to improve foreign exchange and capital markets but indicated that further progress is required.
Meanwhile, South Korean stocks opened higher on Wednesday, June 24, 2026, with the benchmark Korea Composite Stock Price Index (KOSPI) adding 1.86 percent. This rise occurred despite significant sell-offs in U.S. semiconductor shares overnight, which had weighed on Wall Street indices. The KOSPI had experienced a sharp decline of nearly 10 percent on the previous day, largely due to foreign investors selling off major semiconductor stocks.