SEOUL, October 08 (AJP) - South Korean government bonds will join the World Government Bond Index (WGBI) in April 2026 as scheduled, global index provider FTSE Russell confirmed Tuesday.
The timeline, originally announced last year, had been revised from November 2025 to April 2026, triggering investor jitters over possible second thoughts about Korea’s sovereign credibility. The adjustment came just days after the Constitutional Court removed former President Yoon Suk Yeol from office for his brief imposition of martial law.
The WGBI, which includes 25 major government bond markets, is the world’s largest bond index, tracking about $3 trillion in assets. Korea’s entry is expected to attract at least $56 billion in inflows, according to estimates by the National Pension Service, the country’s leading institutional investor.
Korean bonds will be phased into the index over eight months from April to November next year, with “equal weighting” each month, FTSE Russell said. “We will work closely with the South Korean government, investors, and market infrastructure to ensure a smooth transition,” the index provider added.
As of October 2025, Korean treasuries are projected to account for about 2.08 percent of the index, ranking ninth among sovereigns. The United States leads with 40.9 percent, followed by China with 10.1 percent and Japan with 9.2 percent.
“This marks the final official review before Korea’s inclusion in April 2026,” the Ministry of Economy and Finance said in a statement. “The confirmation enhances market predictability and reaffirms confidence in Korea’s fiscal and financial soundness.”
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