The FTSE Russell announced the ‘FTSE Fixed Income Country Classification September 2025 Review Results Announcement’ at 4 p.m. on the 7th (5 a.m. on the 8th Korean time). Through this second half review, the FTSE Russell reconfirmed Korea’s decision to be included in the World Government Bond Index (WGBI) last October and the decision on the inclusion method in April this year.
FTSE Russell is a subsidiary of the London Stock Exchange Group (LSEG) and is one of the world’s major market index calculation institutions along with S&P Dow Jones, MSCI, and CRSP.
The World Government Bond Index (WGBI) is a developed bond index that includes government bonds from 26 major countries, with an estimated tracking fund scale of approximately $2.5 trillion to $3 trillion.
FTSE Russell stated that the inclusion of Korean government bonds in the WGBI would be carried out in eight stages with equal weighting from April to November 2026. The organization explained that it plans to work closely with the Korean government, investors, and market infrastructure institutions to ensure the smooth inclusion of Korean government bonds in the index.
In the announcement, the FTSE Russell stated, “The inclusion will proceed in equal proportions over eight months and will be reflected from the April 2026 index profile to the November profile,” further adding, “We will continue to collaborate closely with the Korean government, investors, and market infrastructure institutions to achieve frictionless index inclusion and will continue to receive feedback on preparation status from market participants.”
The FTSE Russell explained that Korea’s expected inclusion ratio in the WGBI as of October 2025 is 2.08%, ranking ninth among all included countries.
The expected inclusion ratios by country are as follows: United States 40.9%, China 10.1%, Japan 9.2%, France 6.5%, Italy 6.0%, Germany 5.2%, United Kingdom 5.1%, Spain 4.0%, and Korea 2.08%.
This review reconfirmed the inclusion decision made by the FTSE Russell in its first half review (April 2025) to notify market participants. It was confirmed as the last official review before the actual inclusion in April 2026, indicating that the inclusion will proceed as planned without any changes.
The FTSE Russell’s announcement has concretized the schedule for the inclusion of Korean government bonds in the WGBI, increasing market predictability.
The government plans to continue enhancing communication with the financial market and regularly review and improve systems and infrastructure related to investment in Korean government bonds, ensuring that the actual inclusion in April 2026 will proceed smoothly. Furthermore, efforts will be continuously made to improve foreign exchange and capital market systems and their modernization to facilitate investment by foreign investors in the Korean capital market without inconvenience.
