MSCI Keeps South Korea in Emerging Markets Despite KOSPI Surge, Fernandez Cites Won Rules

MSCI kept South Korea in its Emerging Markets category for another year despite the KOSPI’s 112% surge in 2026 and its ranking as the world’s best-performing major index in 2025. According to BeInCrypto, MSCI CEO Henry Fernandez said the key obstacle is the Korean won’s limited trading hours, which prevents global index funds from rebalancing positions outside Seoul hours. South Korea plans to launch 24-hour dollar-won spot trading on July 6, but Fernandez questioned whether liquidity and bid-ask spreads will meet institutional needs. MSCI also flagged investor ID rules, limits on in-kind transfers, and restrictions on exchange data use.