South Korea's inclusion in the World Government Bond Index (WGBI) has resulted in a notable increase in foreign demand and holdings of its government bonds. This development reflects growing international investor confidence in the nation's financial market.

South Korea's bond market has attracted over 4.4 trillion won ($2.9 billion) in foreign capital within three days, following the country's phased inclusion in FTSE Russell's World Government Bond Index (WGBI).