Inclusion could draw up to 60 bln into South Korea39;s bond market
Analysts expect boost for the won and stock market
Reforms include omnibus account for bonds, extended trading hours

SEOUL, Oct 9 Reuters The surprise inclusion of South Korean sovereign bonds in the FTSE Russell39;s benchmark bond index is expected to give the won currency a boost on Thursday and attract billions of dollars of inflows over the next few years.

South Korea39;s government has projected the inclusion to the World Government Bond Index could draw as much as 80 trillion won 59.7 billion into its 2.2 trillion bond market, a welcome source of funds for the world39;s fastestaging country as welfare costs look set to surge.

The inflows are also expected to provide a shot in the arm for the won, which is down 4 against the dollar so far this year and a slumping stock market, analysts say.

Korea39;s financial markets are closed on Wednesday for a public holiday so are set to react on Thursday.

For Korea, the inclusion means steady and stable source of money inflows and signals that the 39;Korea discount39; could be eased, said Kim Hansoo, an analyst at the Korea Capital Market Institute.

The Korea discount refers to a tendency for South Korean companies to have weaker valuations than global peers due to red tape, low dividend payouts and the dominance of opaque conglomerates known as chaebols.

Korea39;s unique, restricted FX market has always been a problem, but the accession means…