The outstanding performance of the South Korean stock market awaits to see if it can join the ranks of developed markets in the MSCI index.

After experiencing the most turbulent week in years, the Korean stock market is nearing a milestone it has been pursuing for a long time: a potential path to joining MSCI's developed market ranks. So far this year, the Korean KOSPI index has been the best-performing major stock index globally, with a gain of over 90%, as investors flock to the leaders in artificial intelligence AI. However, this wave of upward momentum has also made the Korean stock market one of the most volatile in the world. The index has triggered trading safety measures multiple times recently, and volatility has soared to levels rarely seen in major global indices. Investors are now awaiting MSCI's annual market classification review on June 23, when the index provider will decide if Korea can finally enter the watchlist for developed markets, which is the first step towards eventual upgrade. Among the 15 investors and strategists interviewed by Bloomberg, most expect MSCI to keep Korea in the emerging market category for now, believing that recent reforms need more time to prove sustainability. However, few doubt the direction of Korea's development. "It's just a matter of time," said Young Jae Lee, Senior Investment Manager at Bada Asset Management. "Korea will at least become a developed market in the next few years. That is my basic expectation."