The Morgan Stanley Capital International (MSCI) once again declined to place South Korea on its watch list for a potential upgrade to developed market status, citing continued barriers such as the limited offshore convertibility of the Korean won and restricted currency-trading hours.

The global index provider emphasized that key reforms--such as broader FX market access and diversified investment instruments--must be fully implemented and evaluated before reconsideration, Yonhap News reported Wednesday.

Despite recent steps, the MSCI said foreign access to South Korea's markets remains too constrained for reclassification, it said.

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