MSCI Keeps South Korea in Emerging Markets Index, Extends Indonesia Review

MSCI kept South Korea in its emerging-markets index after determining that underlying accessibility issues remain unresolved. The index provider cited the absence of a fully deliverable offshore won market and lingering operational frictions in short-selling settlements as key hurdles. MSCI extended its assessment of Indonesia until November.

It warned that Indonesia could face a downgrade to frontier-market status if reforms prove insufficient. The extension follows MSCI's January decision to freeze Indonesia's stocks from its indexes over investability concerns. South Korea plans to launch 24-hour trading in the dollar-won spot market on July 6.

Korea's financial regulators are considering several measures for leveraged ETF products, including higher minimum margin requirements, strengthened investor education, increased transaction fees, and temporary trade restrictions. All five major commercial banks in Korea exceeded the financial authorities' credit-loan management targets this year.

Their total balances for other loans rose by KRW 1.1583 trillion through May, despite an agreement to reduce those balances by KRW 125.3 billion from the end of last year.

The labor union at Hyundai Motor Company is scheduled to vote on a strike plan on 2026-06-24.