South Korea to be included in the World Government Bond Index..."75 trillion foreign capital inflow"

[Anchor]
Government bonds, bonds issued by the Korean government, have been incorporated into the "World Government Bond Index," one of the world's top three bond indices.

As Korean government bonds are incorporated into the so-called developed country government bond club, foreign investment funds worth 75 trillion won are expected to flow into the country.

I'll connect you with reporters for more information. Reporter Ryu Hwan Hong!

What are the benefits of our government bonds being incorporated into the 'World Government Bond Index'?

[Reporter]
Government bonds refer to bonds issued by our government to secure funds.

These government bonds are issued not only to domestic but also to foreign investors, and if our government bonds are included in the "World Government Bond Index," foreign investment can be more active due to increased external credibility.

As our government bonds were incorporated into the "World Government Bond Index," they were incorporated into two of the three major bond indices that investors around the world are paying attention to.

The world's three largest bond indices are the "World Government Bond Index," the "Bloomberg-Barclace Global Government Bond Index," and the "JP Morgan Emerging Countries Government Bond Index."

Among them, Korean government bonds have already been incorporated into the Bloomberg-Barclace Global Government Bond Index.

The JPMorgan Emerging Countries Treasury Index' is not applicable to Korea's government bonds because it is applicable to emerging countries.

The FTSE, or the Financial Times Stock Exchange Russell, decides to incorporate into the 'World Debt Index'.

After a one-year grace period, FTSE Russell has decided to incorporate South Korean government bonds into the "World Government Bond Index" from November next year.

In the global government bond market, the amount of funds that follow the "World Government Bond Index" is estimated to be $2.5 trillion.

Of these, the proportion of Korean government bonds will be 2.22%, with at least $56 billion and 75 trillion won in Korean money expected to flow into the country.

This is expected to be of great help in stabilizing exchange rates and market interest rates.

There is also an analysis by the Korea Financial Research Institute that the inflow of foreign investment funds of $50 to $60 billion into the country will have the effect of lowering interest rates by 0.2 to 0.6%.

Also noteworthy this time is that Korea has avoided designating an observation target country.FTSE Russell, which decides to include

in the 'World Debt Index', has been considering designating the country to be observed, taking issue with the ban on short selling in our stock market.

If our stock market, which is classified as an advanced market, is designated as an observation target country, it could be a bad news for foreign investors.

FTSE Russell is said to be in a position to watch more in consideration of the fact that the Korean government has announced the schedule for the resumption of short selling at the end of March next year.

So far, I'm YTN Ryu Hwan Hong from the Ministry of Economy.