South Korea has failed to join the World Government Bond Index (WGBI), a global benchmark that measures the performance of sovereign bonds. Financial Times Stock Exchange Russell, the index operator of WGBI, announced its Fixed Income Country Classification on Thursday, stating that South Korea would remain on the watch list, being placed on hold for its index inclusion until the next decision. FTSE Russell blamed the low market accessibility of Korea’s financial market for foreign investors as a reason for the failure. The Korean government has been pushing for WGBI inclusion in the hopes that it will lead to an inflow of foreign funds worth up to USD60bn. The Finance Ministry said it will put in the utmost effort to have the country make the WGBI listing through continued improvements to its financial market structure and communication with global investors.
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