Koo Yoon-cheol, Deputy Prime Minister and Minister of Finance, identified the demand for the Korean won to be freely traded and account-based 24 hours a day as the main obstacle to inclusion in the Morgan Stanley Capital International (MSCI) developed markets index.
During a report on the second half of 2026 held at the Blue House on July 15, Koo responded to President Lee Jae-myung's question about the biggest hurdle to MSCI inclusion.
President Lee noted, "The domestic stock market has experienced significant fluctuations in a short period, and it requires time and volatility to stabilize. Generally, MSCI inclusion is seen as beneficial for stabilizing international demand."
In response, Koo emphasized, "It’s not that we are unable to proceed; we have our own pace. We need to stabilize the capital market, and there are risks associated with a rapid increase in the won's speed, so we need to adjust our pace. We are working to join MSCI as quickly as possible while maintaining our own speed."
He added, "If the foreign exchange market is exposed before it is ready, it could have adverse effects. We expect to implement many institutional improvements by early next year."
During a report on the second half of 2026 held at the Blue House on July 15, Koo responded to President Lee Jae-myung's question about the biggest hurdle to MSCI inclusion.
President Lee noted, "The domestic stock market has experienced significant fluctuations in a short period, and it requires time and volatility to stabilize. Generally, MSCI inclusion is seen as beneficial for stabilizing international demand."
In response, Koo emphasized, "It’s not that we are unable to proceed; we have our own pace. We need to stabilize the capital market, and there are risks associated with a rapid increase in the won's speed, so we need to adjust our pace. We are working to join MSCI as quickly as possible while maintaining our own speed."
He added, "If the foreign exchange market is exposed before it is ready, it could have adverse effects. We expect to implement many institutional improvements by early next year."
* This article has been translated by AI.
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