South Korea has failed to secure a spot on the MSCI developed market watch list in the annual market classification review announced on the 23rd (local time), after being placed on the watch list in 2008 and removed in 2014. The government officially restarted its bid for inclusion in 2021. Three main reasons are cited. First, MSCI noted that “the won cannot be physically delivered in offshore markets,” as it is primarily traded through non-deliverable forwards. The government plans to operate won-dollar foreign exchange trading on a 24-hour non-stop basis starting on the 6th of next month and will implement an offshore won payment system from next year. Second, MSCI pointed out that market participants have faced significant operational challenges under market surveillance regulations since short-selling was fully resumed in March last year, including issues with the computerized short-selling system and manual processing of stock borrowing transactions.