emirates7 - South Korea has once again failed to be included on the watch list for a potential upgrade in market status by global index provider Morgan Stanley Capital International (MSCI), the firm announced on Wednesday.

According to Yonhap News Agency, MSCI stated that South Korea still needs to advance its foreign exchange market reforms and broaden its range of investment instruments.

The decision follows MSCI’s recent annual market accessibility report, which noted that despite several reform efforts—such as extended trading hours and allowing foreign investors to access the onshore foreign exchange market—foreign access to Korea’s equity and currency markets remains restricted.

MSCI also pointed out the absence of an offshore currency market and ongoing limitations in the onshore market.

The index provider said it will continue to observe Korea’s progress, particularly regarding the stability of its market and the consistency of its regulatory environment.

MSCI reviews its watch list each June, assessing countries based on factors such as economic development, the size and liquidity of equity markets, and the ease of access for foreign investors.