Lee calls for review of Korea's emerging-market status in Bloomberg bond index

Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il said Wednesday that Bloomberg's classification of South Korea as an emerging market in its bond index warrants a review, citing the country's international economic standing, the growth of its government bond market and improved market accessibility.

Lee made the remarks during a meeting with Bing Li, Bloomberg's Asia-Pacific representative, at Government Complex Seoul. "Korea is classified as an advanced economy by the International Monetary Fund and the World Bank, and market accessibility has also improved significantly in recent years," Lee said, adding that Bloomberg's emerging-market designation for Korea deserved closer scrutiny.

The Bloomberg Global Aggregate Index is one of the world's three major bond indexes. South Korea has been included in the index since 2002.

Lee said the government has continuously worked to improve market accessibility for foreign investors since Korea's inclusion in the World Government Bond Index (WGBI) in April, and that the international standing of Korea's government bond market and interest from global investors have both grown.

Lee particularly asked Bloomberg to ensure that these achievements are fully reflected in any future review of its country classifications.

Lee also said communication with global investors is essential if the government's efforts to reform its foreign exchange and capital market regime are to translate into actual investment growth. Lee urged Bloomberg to support dialogue between the government and the market through its financial information services, media and other channels.

In response, Bing Li expressed agreement on the need for continued communication and cooperation with the Korean government, and said Bloomberg would keep working to deepen global investors' understanding of Korea's financial markets and to serve as a bridge between the government and the market, the Ministry of Economy and Finance said.