Better for S Korea to stay emerging

Money managers do not welcome an MSCI upgrade to developed market status

[SEOUL] FOR South Korean stocks, it's better to be a big emerging market than a small developed one.

Instead of welcoming a potential upgrade to developed status by MSCI Inc, money managers prefer Korean shares to remain in the MSCI Emerging Markets Index because they'll attract more money as the second-largest component, said BNP Paribas Investment Partners.

The nation's stocks beat the emerging index by about 11 percentage points in the past five years, while trailing the advanced-nation gauge by 41 points.

MSCI, whose indices are used by investors with US$8 trillion to measure performance, will say in its annual classification review on June 10 whether Korea has done enough to free up its currency...

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