South Korea welcomes FTSE Russell's plan to include country in world bond index

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South Korea welcomes FTSE Russell's plan to include country in world bond index

SEOUL South Korea welcomed index provider FTSE Russell's announcement that it is considering adding the country to its world bond index, saying that inclusion would boost the stability of local bond and foreign exchange markets.

FTSE Russell, a global index provider wholly owned by London Stock Exchange Group PLC, added South Korea to its watch list for possible inclusion in its FTSE World Government Bond Index.

Following its annual country classification review, the index provider said there were several proposed initiatives that were intended to improve the market's structure and accessibility of South Korean capital markets.

South Korea's Ministry of Economy and Finance said the move was a recognition of the country's government bond market as an advanced market and that it would contribute to global revaluation of local bonds.

Independent research reports said that inclusion would bring up to 90 trillion won $63.02 billion into the local bond market.

The ministry said it expects to make a decision on inclusion next year.