South Korea has been added to the watch list for potential inclusion in the World Government Bond Index(WGBI).

Index provider FTSE Russell said in a press release on Thursday that the move follows the announcements of several initiative proposals by the South Korean market authorities intended to improve the market's structure and the accessibility of South Korean capital markets.

The global index provider said that it would gather feedback from market participants as the proposed reforms are implemented.

South Korea is hoping to be included in the WGBI in September of next year, with an earlier projection by the Korea Institute of Finance estimating that the country’s inclusion would bring in foreign investment worth some 50 to 60 trillion won.

The WGBI, one of the three major bond indices, is a widely used benchmark that currently includes sovereign debt from 23 countries, including the United States, Britain and Japan.