South Korean government bonds have secured final approval for inclusion in the FTSE World Government Bond Index (WGBI), one of the world’s top three sovereign debt benchmarks, although the entry date has been postponed to April 2026, index provider FTSE Russell said on April 9.
FTSE Russell said global investors strongly supported Korea’s inclusion and that South Korean authorities had pledged to ensure a smooth onboarding. The delay from the originally planned start in November 2025 was intended to give market participants more time to complete internal procedures and conduct test trades, it added.
The inclusion follows a series of reforms by Seoul aimed at improving foreign access to its bond market, including tax exemptions on interest and capital gains and the elimination of the investor registration certificate (IRC) system.
The WGBI, compiled by FTSE Russell, guides an estimated $2 trillion to $3 trillion in global investment and currently includes government bonds from 25 countries, including the United States, Japan and the United Kingdom.
Although the inclusion has been confirmed, the delayed timeline means expected benefits—such as increased foreign inflows and lower borrowing costs—will be deferred. The pace of Korea’s weighting increase in the index has also been revised from quarterly to monthly increments, though the full inclusion remains scheduled for November 2026.
South Korea’s Ministry of Economy and Finance said the updated timeline would help investors complete their preparations and ensure a smoother transition, maximizing the impact of the index inclusion.
It added that monthly increments would offer investors greater flexibility in adjusting their holdings.
Asked whether recent political uncertainty in South Korea influenced the delay, the ministry said there was no connection. “If there had been concerns over trust in Korea’s bond market, including political risks, FTSE Russell might have reconsidered the inclusion altogether or pushed back the final phase-in,” a ministry official said.
