The Korea Times
Korea's inclusion in the World Government Bond Index (WGBI) took effect Wednesday, raising expectations that fresh foreign inflows could help support the weakening won. According to financial authorities, the inclusion of Korean government bonds into the index operated by London-based FTSE Russell will be phased in over eight months through November. The WGBI currently comprises government bonds from 25 countries, and Korea's weighting is expected to reach around 2 percent, making it the ninth-largest among members. Inclusion in the index is expected to trigger investment from global institutional investors, including pension funds and asset managers that track the benchmark. The Ministry of Finance and Economy said it held a kick-off meeting for a task force the same day with the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service and the Korea Securities Depository to monitor WGBI-related capital inflows and promote further investment. Koo Yun-cheol, deputy prime minister and finance minister, said the inclusion to the global index is expected to help sta
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