- 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
Equity
Greece will remain on the Watch List for possible reclassification from Advanced Emerging to Developed market status. The market meets the twenty-two FTSE Quality of Markets criteria required for attaining Developed market status and has the Gross National Income (GNI) per capita rating of ‘High’. The current Credit Worthiness rating of ‘Speculative’ for Greece is under review following the recent upgrade in the sovereign debt rating of Greece by one of the primary credit rating agencies. Additionally, Greece will be evaluated against the minimum size and securities count requirement for a reclassification to Developed market status based on data as of month-end June 2025. The next update on the Watch List status of Greece will be provided as part of the FTSE Equity Country Classification September 2025 annual review of equity markets.
Watch List indices reflecting Greece as a Developed market are available for index users.
Vietnam remains on the Watch List for a possible reclassification from Frontier to Secondary Emerging market status as the market has yet to meet the settlement requirements stipulated in the FTSE Equity Country Classification Framework. The Vietnamese authorities have recently introduced a non-prefunding (NPF) model for trade execution. As this is a recent development, FTSE Russell continues to monitor the market and seek feedback from market participants. The Vietnamese market authorities remained committed to pursuing the various regulatory reforms required to attain Emerging market status, including but not limited to an upgrade to the main trading platform. The next update on the status of Vietnam will be provided as part of the FTSE Equity Country Classification September 2025 annual review of equity markets.
Watch List indices reflecting Vietnam as a Frontier market are available for index users.
The full FTSE Equity Country Classification Announcement can be found here: Equity Country Classification Announcement – March 2025
David Sol, Global Head of Policy at FTSE Russell, comments:
“At the heart of FTSE Russell’s approach to the classification of equity and fixed income markets is the accessibility of global financial markets. Our continuous proactive engagement with the investment community, stock exchanges, regulators and other stakeholders reflects best practice, ensuring our indices remain fit for purpose and reflect the true investment opportunity for investors.”
More information on the Equity Country Classification framework and Fixed Income Country Classification framework can be found on our website. The next update will be published in October 2025.
| Fixed Income | |
| Market Accessibility level | Eligible FTSE Russell fixed income index |
| 2 | FTSE World Government Bond Index (WGBI) |
| 1 | FTSE Emerging Markets Government Bond Index (EMGBI) |
| 0 | FTSE Frontier Emerging Markets Index |
| Equity | |
| Country Classification | Eligible FTSE Russell equity index |
| Developed | FTSE Developed Index |
| Advanced Emerging | FTSE Emerging Index |
| Secondary Emerging | FTSE Emerging Index |
| Frontier | FTSE Frontier Index . |
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