SINGAPORE, June 19 (Reuters) - South Korea's stock

market accessibility for short-selling has improved and has no

major issues, MSCI ( MSCI ) said on Friday as investors brace for next

week's market classification from the global index provider and

hope the country gets an upgrade.

The stock market of Asia's fourth-largest economy is

currently categorised as an emerging market by MSCI ( MSCI ), despite

many other metrics indicating its developed-economy status.

South Korea has been chasing after developed market status

for some years and investors hope next week's classification

will include South Korea being added to the watch list for an

upgrade.

The country in March lifted a full market-wide ban on short

selling of stocks for the first time in five years, which had

been cited by foreign investors and MSCI ( MSCI ) as a major factor

hindering market access.

In its annual market accessibility review released on

Friday, MSCI ( MSCI ) said there has been an improvement in South Korea's

short-selling market accessibility, nudging up the rating to "+"

or no major issues, improvements possible, from "-" or

improvements needed.

The benchmark index KOSPI has had a stellar year,

surging 24%, making it the best performing Asian stock market in

2025 as political clarity and optimism around corporate reforms

buoy investor sentiment. An upgrade in the coming years would

lead to significant inflows, analysts say.