South Korea to Join FTSE World Government Bond Index, Boosting Market Accessibility
LONDON, SEOUL, Oct. 9 (Yonhap) – South Koreais set to be included in the FTSE World Government Bond Index (WGBI), one of the world’s three major bond indices, with an estimated weighting of 2-2.5%.
FTSE Russell, the world’s second-largest index provider, announced its semi-annual review report on October 8 (local time), proposing the inclusion of South Korea in the WGBI. The report stated that FTSE Russell’s decision to include South Korea will take effect in November next year.
The report highlighted that FTSE Russell has upgraded South Korea’smarket accessibility from the first level to the second level following its review. This upgrade signifies improved access for international investors to the Korean bond market.
FTSE Russell typically adjusts its indices twice a year, in March and September, based on aneconomy’s market size, sovereign credit rating, and market accessibility. South Korea was placed on the upgrade watchlist in September 2022, but its market accessibility had not met the required standards until now.
Following its official inclusion in November 2025, South Korea’s weighting in the WGBI is expected to be around 2-2.5%. This inclusion is anticipated to attract significant foreign investment into the Korean bond market, further boosting its liquidity and international visibility.
The inclusion of South Korea in the WGBI marks a significant milestone for the country’s financial market development. It signifies thegrowing recognition of South Korea’s economic stability and its attractiveness as a destination for international investors.
References:
- Yonhap News Agency. (2024, October 9). 韩国将被纳入富时世界国债指数. Retrieved from https://www.yna.co.kr/view/AKR20241009000000004?input=1195m
Views: 0