, Columnist
No, South Korea Is Not Ready for MSCI’s Elite Club
When the president cannot help but meddle, it’s a sure sign your market has a way to go.
Narrowing the “Korea Discount” isn’t easy.
Photographer: Jung Yeon-Je/Pool/Getty Images
This article is for subscribers only.
It has been a long-time aspiration in Seoul that South Korea, a wealthy nation with $35,000 gross domestic product per capita, joins index provider MSCI’s elite club of developed markets. That dream may finally become a reality this summer.
Last year, Seoul’s wishes were once again brushed aside. MSCI lectured the government on its unfriendly market practices, including a short-selling ban put in place at the onset of the pandemic, a lack of currency trading offshore, and insufficient information flow — especially for foreign investors.