The bond market has succeeded, but what about the inclusion of the MSCI index of advanced countries in the stock market?

Bond WGBI Involves Some Unexpected 'Surprise' Success

Preparation for opening of consolidated government bond accounts and extending the opening of the foreign exchange market

This year alone, 9 overseas investor presentations will be held.

[Anchor]
The inclusion of Korea's World Bond Index and WGBI yesterday is expected to be a major milestone in the advancement of the bond market.

Then, when will the inclusion of the MSCI developed country index, the long-cherished desire of our stock market, be possible?

Reporter Lee Seung-eun recognized it.

[Reporter]
Foreign institutions have missed the prospect that Korea will be included in the World Government Bond Index and WGBI next year.

The government and related organizations have joined forces to open a government bond consolidation account, which is like a highway linking foreign investors to the Korean government bond market, and the opening of the foreign exchange market has been extended to 2 a.m.

The government has held nine briefing sessions for overseas government bond investment institutions this year alone and has also reportedly communicated with 100 Japanese investors, who account for 30% of the index's followers.

[Choi Sang-mok / Deputy Prime Minister and Minister of Strategy and Finance: The government's commitment to the advancement of the government bond market is very strong. I think the Korean government's good explanation of these wills gave us a chance earlier.]

While the interest expense on government bonds reached 23 trillion won last year, the net issuance amount next year alone reached 83.7 trillion won.

If investment funds worth 75 trillion won are sequentially introduced due to the inclusion of WGBI in November next year, the interest rate on government bonds will fall, which will give more room for issuance.

Furthermore, it helps stabilize market interest rates and exchange rates.

The bond market has entered a new era, but in the case of the stock market, it has also been eliminated from the candidate group, the target country, in relation to the inclusion of the long-cherished MSCI developed country index.

MSCI said in its annual market classification in June that it was noting that a ban on short selling to South Korea was limiting foreigners' access to the market.

Although the government has declared the resumption of short selling in March next year, there is still homework to respond to the demand for the opening of an offshore foreign exchange market.

[Lee Sang-ho / Head of the Economic Industry Division of the Korea Business Association: The opening of the offshore foreign exchange market is not easy because it has been traumatized by the foreign exchange market crisis in the past. However, since Korea has a very developed forward exchange market for foreign exchange, there is no problem in foreign exchange dealing, so we need to persuade these parts well.

To be included in the MSCI index of advanced countries, it must be on the list of countries to be observed for more than a year, and even if it is announced as soon as June 2026, the actual transfer will be made in June 2027.

I'm YTN's Lee Seung Eun.

Jeong Jeong-yoon in video editing