Overview

• In its 2025 market accessibility review, MSCI raised South Korea’s short-selling rating to “+,” indicating no major issues after the ban was lifted in March
• Foreign exchange reforms such as extended trading hours and onshore forex participation are undercut by operational hurdles and limited omnibus account usage
• MSCI retains South Korea on its emerging market list but may add it to the watch list for a potential upgrade in next week’s classification
• The benchmark KOSPI index has surged 24% year-to-date, making it the best‐performing Asian equity market amid political clarity and corporate reforms
• Analysts say a promotion to developed market status could unlock significant capital inflows if further accessibility improvements are sustained