FTSE Russell said Tuesday that the nation's government bonds will be included in the World Government Bond Index (WGBI).
This marks the fourth attempt and successful inclusion since being appointed to the index provider's review list in September 2022.
FTSE Russell explained that South Korea's market accessibility level has been upgraded from level 1 to level 2 following its review.
With the addition of the country to WGBI, at least 75 trillion won ($55.6 billion) of foreign capital is expected to flow into South Korea, contributing to the stabilization of bond yields and exchange rates.
Along with Bloomberg Barclays Global Aggregate Index (BBGA) and JP Morgan's Government Bond Index-Emerging Markets (GBI-EM), the WGBI is one of the most trusted bond indexes by institutional investors worldwide.
It is regarded as the advanced government bond club since it includes government bonds from 25 major countries, such as the U.S., Japan, and the U.K.
FTSE Russell typically makes regular decisions in March and September regarding WGBI inclusion, based on factors such as market size, sovereign credit rating, and market accessibility level.
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