MSCI maintained South Korea’s classification as an emerging market during its annual review on June 23, 2026. [7, 10] The index provider declined to add the country to its watchlist for a potential developed market upgrade. [7, 10]
South Korea’s benchmark KOSPI index plunged nearly 10% following the announcement. [7, 16] This move marked the largest single-day decline in the history of the index. [7, 16]
The decision removed a key driver for anticipated foreign capital inflows. [10, 15] MSCI rules delay any potential status upgrade until at least 2027. [10]