Key facts
- MSCI will keep South Korea in the emerging market category.
- The decision is due to limited Korean won convertibility.
- South Korea's finance ministry stated that reforms are ongoing.
- The goal is to achieve developed market status by 2027.
- The ministry will continue its reform efforts.
MSCI has decided to maintain South Korea's classification as an emerging market, according to a recent announcement. The primary reason cited for this decision is the limited convertibility of the Korean won. This classification persists despite ongoing reform efforts by South Korea aimed at elevating its market status. South Korea's finance ministry has stated that these reforms are continuing and are on track to potentially achieve developed market status by 2027. The ministry expressed its commitment to continuing these reform initiatives.