South Korea to be included in 'World Debt Index'..."75 trillion worth of capital inflows"

S. Korea succeeded in incorporating into 'World Debt Index' after four rounds

South Korea's 9th-largest share among 26 countries..."Involved in November next year"

Involved in the 'World Government Bond Index'...Prospects for Exchange Rate Stabilization and Interest Rate Cuts

Avoided Designation of 'Observation Countries'...We'll Be Watching Short Sellers Resume

[Anchor]
Bonds and government bonds issued by the Korean government will be incorporated into the "World Government Bond Index," one of the three major global government bond indices, from November next year.It is expected that about 75 trillion won will flow into Korean government bonds as foreign capital that follows the

'World Government Bond Index' is flocking to Korean government bonds.

Reporter Park Ki-wan reports.

[Reporter]
Government bonds issued by the Korean government have succeeded in incorporating into the world's largest bond index and the "World Government Bond Index."

After four challenges since September 2022, it has been recognized as a global advanced financial market.

FTSE Russell said South Korea has met its incorporation requirements, pushing to improve its system to expand access to the government bond market.

In particular, Korea ranked ninth among 26 countries in the "World Debt Index," accounting for 2.22 percent.

Follow-up funds following the World Bonds Index are $2.5 trillion,
Considering the proportion of Korea in
, foreign capital of 56 billion dollars and 75 trillion won in Korean money is expected to flow through government bonds.

This is not all.

Some predict that the large-scale foreign exchange inflow will not only stabilize the exchange rate but also lower interest rates.

[Choi Sang-mok / Deputy Prime Minister for Economy and Minister of Strategy and Finance: Interest rates are expected to stabilize and reduce financing costs for the people and businesses. Second, the inflow of large-scale follow-up funds will expand the foundation of the government bond market, enabling stable mid- to long-term fiscal management.]

Meanwhile, we have also avoided designating 'observable countries', which can be a major negative factor for our financial market.

FTSE Russell has been considering naming South Korea a "monitoring country," citing the government's ban on short selling.

However, it is reported that the decision was delayed for now in consideration of the fact that the Korean government announced the schedule for the resumption of short selling at the end of March next year.

I'm Park Kiwan of YTN.

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