South Korea is actively pushing to elevate its financial standing from emerging-market status to eliminate the valuation discount domestic shares suffer compared to global competitors. In pursuit of this goal, the country instituted 24-hour currency trading in July and introduced various tax measures. Regulators are also reviewing further actions, including expanding English-language corporate filings, encouraging higher dividend payouts, and publicly naming companies with exceptionally low price-to-book ratios. MSCI Chairman Henry Fernandez noted that while new rules show clear progress, real-world execution is necessary to finalize an upgrade.
Key points
Regulatory progress alone is insufficient for an MSCI status upgrade without proof of pra…: Regulatory progress alone is insufficient for an MSCI status upgrade without proof of practical implementation.
South Korean officials are considering expanded English-language corporate filings to res…: South Korean officials are considering expanded English-language corporate filings to resolve valuation discounts against global peers.
Encouraging higher corporate dividend payouts forms a key part of the government strategy…: Encouraging higher corporate dividend payouts forms a key part of the government strategy to support domestic share prices.
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SEOUL, Nov 6 : MSCI Chairman and CEO Henry Fernandez said on Friday that the index provider needed to see South Korea's regulatory changes for an upgrade to developed-market status put into practice.
"I see the progress that has been made in terms of the rules, the regulations and all of that," he told a conference in Seoul. "But we need to see that in practice."
"So in order to accelerate that, we need to work together to push everyone to the finish line," he added.
An upgrade from emerging to developed-market status is one of President Lee Jae Myung's major policy pledges. His government has rolled out market reforms and tax measures to boost the domestic stock market since he took office in June 2025.
South Korea also opened up its currency market in July to allow 24-hour trading in a bid to win the upgrade.
South Korean regulators are also considering other measures to tackle the discount in local stock prices compared with global peers, including expanding English-language company filings, pushing firms to increase dividends and naming-and-shaming those…
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