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Analysis South Korea to join major bond index, opening doors for foreign investmentInclusion in FTSE Russell’s Bond Index follows reforms and could attract billions in capital, but market risks remain FTSE Russell announced on Wednesday that it will include South Korea on its World Government Bond Index (WGBI) beginning in Nov. 2025, opening the door to substantial foreign capital inflows. The decision follows Seoul’s efforts to reform its financial markets in recent years to improve accessibility to foreign investors and promises to create significant opportunities for economic growth. However, the potential for increased volatility and regulatory challenges underscores that the development is not without risk, and how South Korea approaches financial liberalization going forward could determine whether it can finally take the next step toward being recognized as a developed © Korea Risk Group. All rights reserved. |





