FTSE Russell Announces Results Of March 2025 Semi-Annual Country Classification Review For Fixed Income And Equities

Full inclusion of South Korea within FTSE World Government Bond Index (WGBI) on track to be completed by November 2026
Implementation approach to be technically refined to phase-in inclusion over shorter eight-month period in sequential monthly tranches
FTSE Russell notes strong support for inclusion of South Korea in WGBI by global investors and commitment of South Korean market authorities to support frictionless inclusion
Greece and Vietnam remain on the equity Watch List for possible reclassification

FTSE Russell, the global index provider, has published the results of its interim country classification review for countries monitored by its global fixed income and equity indices.

Fixed Income

In October 2024, FTSE Russell announced the reclassification of the Market Accessibility Level for South Korea from 1 to 2, and the inclusion of South Korean government bonds in the FTSE World Government Bond Index (WGBI) after a number of welcomed initiatives were implemented by the South Korean market authorities to improve the accessibility of South Korean government bonds for international investors.

FTSE Russell notes continued strong support for inclusion from market participants and commends the commitment of South Korean market authorities and market infrastructure providers to ensure a frictionless index inclusion.

Based on feedback from index stakeholders, FTSE Russell announces details of a refined technical inclusion approach with inclusion phased-in over a shorter eight-month period, in eight equal monthly tranches, commencing with April 2026 index profiles and completed with November 2026 index profiles, in line with previously announced completion date.

Nikki Stefanelli, Global Head of Fixed Income, Currencies and Commodities (FICC) Index Policy at FTSE Russell, comments:

“There continues to be broad support for FTSE Russell’s decision to include South Korea in the FTSE WGBI, with full inclusion on track to be completed by November next year. We commend the commitment of South Korean market authorities in their continuation of initiatives which incorporate the practical feedback of international market participants to align their market with the highest standards for global bond investing. The refinement to the implementation approach in the FTSE WGBI further ensures a smooth index inclusion, based on demonstrated close collaboration amongst the global investment community.”

Jae-Hwan Kim, Director General of International Finance Bureau at Korea MOEF, comments:

“We are pleased to see the benefits of our capital markets reforms realised by WGBI users and that there continues to be support for the completion timeline of full inclusion by November 2026. We greatly look forward to continued dialogue with international investors and FTSE Russell to ensure a smooth transition for the market.”

In October 2024, FTSE Russell also announced the reclassification of the Market Accessibility Level for India from 0 to 1 and the inclusion of Indian government bonds in the FTSE Emerging Markets Government Bond Index (EMGBI). As previously announced, the change will be effective with the September 2025 index profiles and phased-in on a monthly basis over a six-month period in six equal tranches.

The full FTSE Fixed Income Country Classification Announcement can be found here: Fixed Income Country Classification Announcement – March 2025