According to the "2025 Global Cities Index" released by Oxford Economics, a UK economic analysis institution, Seoul ranked 15th among 1,000 cities worldwide and 2nd among Asian cities, solidifying its global standing. Particularly, Seoul demonstrated top-tier competitiveness, ranking 5th globally in the human capital sector. However, the report indicated that there is still room for improvement in the quality of life and environment sectors.

 
Seoul's Rapid Ascent: A 26-Place Jump

The report released by Oxford Economics on May 28th shows Seoul ranking 15th in the 2025 Global Cities Index, following New York (1st), London (2nd), and Paris (3rd). This marks a significant jump of 26 places from its 41st position last year, clearly demonstrating Seoul's rapid growth and potential. This assessment comprehensively analyzed five categories: economics, human capital, quality of life, environment, and governance.

The key factor behind Seoul's strong performance was its overwhelming achievement in the human capital sector. Seoul ranked 5th globally in this category, earning praise as "the city with the best human capital in Asia." Oxford Economics highlighted Seoul's strengths as a strong academic elitist culture and numerous prestigious higher education institutions. Additionally, the presence of global multinational corporations such as Samsung, LG, and Kia Motors with headquarters in Seoul also positively impacted the human capital assessment. This suggests that an environment where talented individuals gather and active research and development take place plays a decisive role in enhancing Seoul's competitiveness.

 
Economic Slowdown and Aging Population: Obstacles to Growth

In the economic sector, Seoul ranked 18th globally. The report stated, "Seoul is the capital of South Korea and one of the major economic hubs in Asia and the world, attributable to the magnitude of GDP (Gross Domestic Product) achieved through remarkable economic growth over the past few decades." It acknowledged Seoul's economic potential by mentioning the "Miracle on the Han River," where a war-torn nation transformed into one of the world's leading economic powers.

However, the report pointed out that recent slowdowns in GDP and employment growth, along with an aging population, are acting as limiting factors that are pulling down its ranking in the economic sector. This implies that Seoul needs to discover new growth engines and actively respond to demographic changes to maintain its past high growth rate. Rapid population aging can lead to decreased productivity and consumption contraction, potentially negatively impacting long-term economic growth.

 
Quality of Life and Environment: Urgent Areas for Improvement

Despite receiving high marks in human capital and economics, Seoul scored relatively low in the quality of life sector, ranking 129th. The biggest reason cited was high housing costs. Housing prices in Seoul have surged in recent years, and the significant increase in the ratio of rental costs to worker household income was pointed out as a weakness. This indicates that Seoul citizens may experience lower actual life satisfaction due to the burden of housing costs.

However, the report noted as a strength that Seoul's life expectancy is among the highest in the world, and that medical technology advancements and improved living standards have occurred throughout Korea over the past few decades. While this signifies that Seoul has excellent medical infrastructure, it also reveals a limitation that it is difficult to raise the quality of life index without solving the housing problem.

In the environment sector, Seoul received its lowest score, ranking 514th globally, exposing serious issues. The main reason was poor air quality. Oxford Economics also highlighted the impact of climate change, with extreme temperature and precipitation patterns leading to prolonged extreme heat in summer and heavy snowfall in winter. The consistently high levels of fine and ultrafine dust pose a direct threat to the health of Seoul citizens, serving as a major obstacle to creating a pleasant urban environment.

 
Governance Hampered by 'Political Uncertainty'

In the governance sector, recent political uncertainty in South Korea was analyzed as a negative factor. Oxford Economics stated that while South Korea has a history of political stability since its transition to democracy after the 20th century, it is currently "facing political turmoil after President Yoon Suk-yeol's declaration of martial law and impeachment." This suggests that the ongoing political situation has directly impacted the governance assessment, and the report predicted that the resolution of the political crisis in the future will have ripple effects not only on this sector's ranking but also on others.

 
Competition Among Asian Cities: Tokyo vs. Seoul

In South Korea, other cities following Seoul included Busan (281st), Jeonju (314th), Daegu (321st), Gwangju (328th), Cheongju (332nd), and Daejeon (341st). This indicates that the international standing of other cities is still relatively insignificant compared to Seoul.

Among Asian cities, Tokyo, Japan, ranked highest globally at 9th. Oxford Economics assessed that despite the "lost three decades" since the 1990s, Tokyo's position in the global city index remains strong. Tokyo maintains its position as a global financial center and is the world's third-largest city by GDP. Interestingly, although Tokyo ranked lower than Seoul in human capital (8th) and economics (22nd), it surpassed Seoul in the overall ranking by scoring higher in other areas such as quality of life (26th), environment (399th), and governance (38th). This demonstrates that Tokyo provides a high quality of life to its citizens based on its long-accumulated urban infrastructure and stable social system.

Other Asian cities trailing behind included Hong Kong (72nd), Shenzhen, China (134th), and Beijing (152nd), revealing intense competition among major Asian cities.

 
Seoul's Future Challenges: Sustainable Growth and Balanced Development

This assessment by Oxford Economics highlights Seoul's significantly improved international standing while clearly outlining areas for improvement. For Seoul to truly become a leading global city, it must focus more on improving the quality of life for its citizens beyond economic growth. To achieve this, solving housing problems, improving air quality, and actively responding to climate change are urgent tasks. Additionally, efforts to secure political stability and establish transparent and efficient governance must also be pursued.

If Seoul successfully addresses the quality of life and environmental issues based on its human capital and economic potential, and achieves sustainable development, it can not only become one of the world's best cities but also serve as a model for cities across Asia and the globe. All eyes are on whether Seoul can overcome these challenges and develop into an even better place to live.