As far as I know, there's nothing preventing a password field from containing any valid unicode string. The problem may be IME support or servers stuck in ASCII, but the textbox itself will just work.
So I guess that could also be "bad," but not incompetent "bad" or Michael Jackson "bad."
Even good websites that will accept any valid password string will sometimes cut off the last part of a long password because their hashing algorithm throws that data away. Bcrypt, for example, supports a maximum input length between 50 and 72 bytes, depending on the library you use to hash your passwords. That's bytes, not characters!
More primitive systems used to have problems with non-alfanumerical passwords and once those algorithms have been unleashed upon the unsuspecting public, you need to support them in your login flow for years to come.
So while we’d love to make it utf8, it is just too much work to justify doing over other things.
it seems i just can't type korean to password fields