On Thursday (London time), FTSE Russell announced that South Korea had not been accepted into its World Government Bond Index (WGBI). The company said the nation would remain on the watch list for potential inclusion in the FTSE World Government Bond Index in March 2024. This follows the South Korean market authorities’ proposed initiatives to improve market structure and accessibility.
Experts believe that it usually takes two years for a country to move from the watch list to the index. The WGBI is a broad index designed to measure the performance of government bond markets, including local currencies and sovereign bonds of major advanced nations. FTSE Russell expressed its appreciation for the open and constructive dialogue with the South Korean authorities and promised to continue engagement with all market participants.
The South Korean finance ministry said the government will keep communicating with investors and increase awareness of policy reform efforts. South Korea and India are the only two countries among the world’s top 10 economies in terms of nominal gross domestic product that have yet to be included in the bond index.
This file image shows an electric board providing updates on yields on sovereign bonds. (Yonhap)
colin@yna.co.kr
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