The Federation of Korean Industries (FKI) visited Morgan Stanley Capital International's (MSCI) New York headquarters and officially urged Korea's stock market to be added to the developed market (DM) watchlist, ahead of MSCI's "Annual Market Classification Review" scheduled for late June. The lobby argues that Korea's stock market now merits a developed-market upgrade, given its maturity ranking sixth globally in market capitalization and dramatic improvements in market accessibility—a qualitative requirement—including foreign exchange market liberalization and expanded English-language disclosures.
According to business circles Wednesday, the FKI dispatched Jung Chul, its Research Director and President of the Korea Economic Research Institute, to MSCI's New York headquarters, where he held urgent talks with top executives including Christine Berg, head of the Americas Index, and delivered a petition urging Korea's inclusion in the developed market.
In the petition, the FKI cited as its top rationale the fact that Korea's stock market already overwhelms existing developed-market members in terms of size. According to Bloomberg, as of early June 2026, the total market capitalization of the Korea Exchange (KRX) stood at $5.042 trillion (about 7,654 trillion won), ranking sixth in the world. This figure significantly exceeds the market weight of major developed countries currently included in MSCI's developed markets, such as Canada ($4.53 trillion), the United Kingdom ($3.94 trillion), and France ($3.45 trillion).
Until now, Korea's stock market has repeatedly failed to enter the developed market, receiving failing marks on the qualitative indicator of "market accessibility" while satisfying the quantitative indicators of economic development and market size. After being included in emerging markets in 1992, Korea was named to the developed market watchlist in 2008, but its promotion fell through, and in 2014 it suffered the hardship of even losing its watchlist status.
However, the FKI stressed that the Korean government's recent intensive capital market advancement roadmap has resolved many of MSCI's past concerns.
First, to improve access to investment information, Korea introduced a phased mandate for English-language disclosures in January 2024, and from May this year significantly expanded the scope to all KOSPI-listed companies with assets of 2 trillion won or more. In addition, to break the chronic "blind" practice of determining shareholders before finalizing dividend amounts, the Capital Markets Act was amended in December 2024, fully overhauling procedures so that both quarterly and year-end dividend amounts are confirmed first before shareholders are determined.
Achievements have also been notable in improving the foreign exchange market structure. Regarding criticism that capital inflows and outflows were rigid due to the absence of an offshore FX market, the government extended the FX market closing time to 2 a.m. and is pushing for full 24-hour opening from the second half of this year. It also allowed Registered Foreign Institutions (RFIs)—authorized overseas financial institutions—to directly participate in the domestic FX market, with the number of registered RFI companies surging more than fivefold from 15 in March 2024 to 79 as of April 2026.
In addition, in the six months after abolishing the Investment Registration Certificate (IRC) system for foreign investors in December 2023, the number of foreign account openings reached 1,432, more than doubling the past monthly average and enhancing trading convenience. Furthermore, after fully resuming short selling in March last year, Korea completed the establishment of a central monitoring system (NSDS), securing policy credibility by establishing a computerized system capable of constantly blocking naked short selling.
"As the government's measures to improve market accessibility are now in full swing, the likelihood of Korea's stock market being added to the developed market watchlist is expected to rise," Research Director Jung Chul said. "At these talks with MSCI executives, we fully explained the justification for Korea's inclusion in the developed market."
