{"id":2206859,"date":"2024-10-21T08:00:56","date_gmt":"2024-10-20T23:00:56","guid":{"rendered":"https:\/\/koreapro.org\/?p=2206859"},"modified":"2024-10-23T18:19:24","modified_gmt":"2024-10-23T09:19:24","slug":"south-korea-prepares-for-major-capital-inflows-with-global-bond-index-entry","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/10\/south-korea-prepares-for-major-capital-inflows-with-global-bond-index-entry\/","title":{"rendered":"South Korea prepares for major capital inflows with global bond index entry"},"content":{"rendered":"
South Korean finance minister Choi Sang-mok will <\/span>meet<\/span><\/a> with global financial leaders this week, including Moody\u2019s and Euroclear, as the country ramps up efforts to secure investor confidence as it prepares for its inclusion in the <\/span>FTSE World Government Bond Index<\/span><\/a> (WGBI) in Nov. 2025. Inclusion in the FTSE WGBI is expected to inject billions of dollars into the South Korean economy. Choi will likely seek to strengthen investor ties and ensure that South Korea is ready for the influx of capital by showcasing the country\u2019s financial resilience.<\/span><\/p>\n The WGBI inclusion could bring in up to $67 billion in foreign investment, with major sectors such as green energy and infrastructure poised to benefit. These meetings are critical as South Korea seeks to secure its place among leading global financial markets.<\/span><\/p>\n WHY IT MATTERS<\/b><\/p>\n Choi\u2019s meeting with Moody\u2019s is a critical step in South Korea\u2019s push to secure substantial foreign investments through its impending inclusion in the FTSE WGBI. Moody\u2019s reaffirmed its <\/span>stable \u201cAa2\u201d rating<\/span><\/a> for South Korea in May. A strong rating from Moody\u2019s will help South Korea tap into global markets more affordably, which will be vital for financing long-term infrastructure projects and other strategic investments across the country.<\/span><\/p>\n His meeting with Euroclear is also vital to ensure smooth entry into the FTSE WGBI. Euroclear specializes in the settlement and clearing of international securities transactions, which will be crucial once South Korean bonds are included in the global bond index. By working with Euroclear, South Korea can ensure that foreign investors will be able to purchase and settle South Korean bonds efficiently, without operational bottlenecks or delays.<\/span><\/p>\n