MSCI decides to keep South Korea in the emerging markets category, citing that onshore liquidity of the Korean won remains insufficient.

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ME AI News: On Tuesday, MSCI (Morgan Stanley Capital International) issued a statement saying that South Korea will continue to remain in the emerging markets category in the annual market classification review. The statement acknowledged that South Korean authorities have announced measures to address long-standing market access issues, but said that key structural bottlenecks have not yet been fully resolved. MSCI said that during the extended foreign exchange trading hours, the Korean won’s “onshore liquidity still remains fundamentally insufficient to support tight execution comparable to developed market standards.” The statement also noted that this limits currency-exchange operating flexibility for index trackers and other investors. (Source: Wall Street Insight)
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