SEOUL, Nov 11 Reuters The vice chairman of South Korea39;s Financial Services Commission said on Monday he saw a much higher possibility of the domestic stock market winning a developed market status from global index provider Morgan Stanley Capital International MSCI next year.

There have been many improvements regarding stock market accessibility, which are expected to be felt more clearly next year, Kim Soyoung said at a press conference held for foreign media in Seoul.

Kim reaffirmed the government39;s plan to fully lift a marketwide ban on short selling of stocks in March next year and said that would make the possibility of inclusion much higher.

South Korea is currently categorised as a developing market by MSCI. The index provider has cited uncertainty over shortselling policies as a factor undermining market accessibility for foreign investors.

Last month, South Korea won inclusion in FTSE Russell39;s World Government Bond Index, which is expected to give the won currency a boost and attract billions of dollars into the domestic bond market.

That will help boost liquidity not only in the bond market, but also in the stock market, Kim said.

Kim said the objective of the government39;s ongoing corporate reform push, dubbed the Corporate Valueup Programme, is to increase market value in the midtolong term.

Reporting by Jihoon Lee Editing by Ed Davies

Source Reuters