South Korea has successfully joined the World Government Bond Index (WGBI), a significant global benchmark for sovereign fixed income, which is anticipated to attract over $56 billion in passive foreign investments. Managed by FTSE Russell, the WGBI is one of the three major government bond indices and is followed by funds totaling over $2.5 trillion. South Korea's inclusion, effective from November 2025 and phased in quarterly over a year, comes after four previous attempts since being placed on the watchlist in September 2022. Finance Minister Choi Sang-mok noted that this inclusion reflects investor confidence in the Korean market and economy, aided by local initiatives to enhance the accessibility of South Korean government bonds for international investors. The inclusion is expected to give South Korea a weight of approximately 2.2 percent in the index, based on its 62 eligible sovereign bonds valued at $712.5 billion. This move is projected to stabilize interest rates and reduce financing costs for both the government and companies, potentially leading to a 0.2-0.4 percent rate cut due to the inverse relationship between interest rates and bond prices. Additionally, the WGBI's credibility is expected to enhance Korea's international financial standing. While the country has maintained its Developed Market status in equity markets since 2009, concerns over a short-selling ban could affect future evaluations, prompting calls for clearer regulations to ensure market efficiency. The government aims to improve the valuation of the stock market alongside the bond market reforms.