South Korea's stock market has, for the third time, failed to make the list of developed markets on the Morgan Stanley Capital International (MSCI) World Index.

In its 2016 Market Classification Review released on Tuesday, the MSCI said South Korea will not be included on the list for a potential reclassification to Developed Markets status.

MSCI cited recent changes announced by the Financial Services Commission, including improving currency convertibility, will not take effect until next year.

MSCI also said the investment frictions related to the lack of convertibility of the Korean won and restrictions imposed by the local stock exchange on the use of exchange data for the creation of financial products remain unaddressed.

The MSCI World Index monitors the stocks of 23 developed markets in the world.