The pending war, standoff of neighbor North Korea, sagging domestic consumption and corporate scandals are holding back much anticipated South Korea’s graduation on investment indexes from emerging market into developed market, despite its strong stock market performance, The Wall Street Journal reports.

The country seemed to be ready for such an upgrade after the Morgan Stanley Capital International (MSCI) Korea Index achieved a 13% yearly gain on average in the past five years, compared to 9% of MSCI Emerging Markets Index and 4% of S&P 500. Analysts believe South Korea meets or exceeds the quantitative criteria for developed market status.

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