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SEOUL / WAM
The Republic of Korea will be included in a key global government bond index run by FTSE Russell starting in November next year, the organisation has said, a decision expected to help it attract significant foreign investment. Yonhap News Agency quoted the organisation’s report as saying that the country will be added to the FTSE Russell’s World Government Bond Index (WGBI) effective with November 2025 index profiles and phased in over a one-year period on a quarterly basis as its market accessibility level will be reclassified from 1 to 2.
The inclusion decision was made two years after the country was placed on its watch list. FTSE added that several initiatives intended to improve the accessibility of Korean government bonds for international investors had been implemented by the Korean market authorities, which have facilitated the fulfilment of the criteria for a Market Accessibility Level of 2.
With a market value of $29 trillion, the WGBI is a highly sought-after benchmark that would attract substantial capital inflows from global investors. Korea is expected to attract as much as 90 trillion won ($67 billion) of foreign investment through the inclusion, officials and experts have said.
FTSE Russell is a subsidiary of the London Stock Exchange Group that produces, licences and markets stock market indices.