Global index provider MSCI has retained South Korea in its emerging-market category, saying the country continues to face long-standing market accessibility challenges, particularly in its onshore foreign exchange market, according to Reuters.
MSCI said the Korean won remains non-deliverable offshore and that liquidity during extended onshore foreign exchange trading hours is still inadequate to meet the execution standards expected in developed markets. The index provider acknowledged the reforms introduced by South Korean authorities but said investors would require more time to assess whether the changes deliver sustained improvements.
