The 4th attempt of the World Bonds Index...Is it possible to inflow global funds to cut interest rates?

[Anchor]
On the 9th, our date will announce whether Korea will be incorporated into the World Government Bond Index.

This is my fourth attempt.

If successful, it is expected to help the inflow of global capital looking for new investment destinations during a major transition period when the U.S. has begun lowering interest rates.

Lee Seung-eun reports.

[Reporter]
Britain's FTSE Russell, a global index provider, will announce the inclusion of Korea's global government bond index and WBGI in the early morning of the 9th, Korean time.

The WBGI is the world's top three bond indexes, and this is Korea's fourth challenge.

If it is incorporated, it is expected that at least $50 billion and 70 trillion won of our money will flow into the government bond market with a time difference of up to a year.

Then, as interest rates on government bonds fall, interest rates on corporate bonds and bank bonds issued based on government bond rates fall, lowering lending rates and helping stabilize exchange rates.

Some say that there is a possibility of incorporation in that the government has increased foreigners' access to the government bond market, but Goldman Sachs is expected to be able to do it next year as the feeling has yet to be felt.

FTSE Russell is also expected to make an assessment of Korea regarding the stock index.

If it is designated as a target country due to the ban on short selling, it is feared to have adverse effects at a time when the value-up effect is sluggish.

[Seok Byung-hoon / Professor of Economics at Ewha Womans University] (The value-up policy now) has no incentive for investors to make long-term investments in terms of taxation. From the standpoint of companies, there is no incentive to increase their dividend payout ratio or to attract long-term investment funds. I think the first thing to do is to create a culture of long-term investment.]

[Choi Sang-mok / Deputy Prime Minister and Minister of Strategy and Finance: A general discussion on capital market taxation is needed. Because in the case of financial investment tax, for example, we only talk about financial investment income tax. However, in developed countries, dividend income also accounts for profits and losses. So dividend interest is being taxed separately right now.]

Attention is focusing on the timing of global capital movement due to the U.S. interest rate cut and the international evaluation that will affect our capital market credibility.

I'm YTN's Lee Seung Eun.


Video editing: Oh HWONSEULGI