MSCI says it needs to see South Korea's regulatory changes put into practice for market upgrade

On November 6, MSCI Chairman and CEO Henry Fernandez stated that the index provider needs to observe South Korea's regulatory changes for a potential upgrade to developed-market status. Fernandez spoke at a conference in Seoul, expressing satisfaction with the progress made in terms of rules and regulations. However, he emphasized the need for practical implementation.

An upgrade from emerging to developed-market status is a significant policy pledge of President Lee Jae Myung. South Korea, under his government, has enacted market reforms and tax measures to bolster the domestic stock market since June 2025. In a bid to secure the upgrade, South Korea opened its currency market in July for 24-hour trading.

Moreover, regulators are contemplating additional measures to address the pricing discrepancy between local and global stock markets, such as improving English-language company filings, increasing dividends, and identifying firms with low price-to-book ratios.