MSCI will announce its annual market classification review results on June 23. South Korea seeks an upgrade from emerging to developed market status during this cycle.
The KOSPI index surged over 90% year-to-date. Global AI demand drove this growth by boosting semiconductor giants Samsung Electronics and SK Hynix.
Analysts estimate an upgrade could attract $30 billion in capital inflows from developed market funds. This reclassification aims to eliminate the Korea Discount that lowers domestic company valuations compared to global peers.
The South Korean government implemented reforms to meet MSCI criteria. These measures include lifting short-selling bans and extending market trading hours.