Seoul, South Korea – South Korea has achieved its highest-ever ranking in the IMD World Competitiveness Ranking, climbing eight places to 20th among 67 economies. The International Institute for Management Development (IMD) released its annual World Competitiveness Yearbook on Tuesday, June 18th.
The significant improvement in South Korea's ranking can be attributed to advancements in business efficiency and infrastructure. The country's business efficiency sub-index jumped 10 places to 23rd, driven by improvements in productivity, labor market, finance, management practices, and attitudes and values. Similarly, the infrastructure sub-index climbed five places to 11th, with notable progress in basic infrastructure, technological infrastructure, scientific infrastructure, and education.
However, the country's health and environmental infrastructure sub-index slipped one place to 30th, primarily due to a decline in the health infrastructure ranking. According to the Ministry of Economy and Finance, this was likely influenced by a survey question regarding the adequacy of the country's health infrastructure.
Key Highlights:
Highest-Ever Ranking: South Korea's 20th place ranking is the highest since it began participating in the IMD World Competitiveness Ranking in 1997.
Improved Business Efficiency: The country's business efficiency has shown significant improvement, driven by advancements in various sub-indices.
Enhanced Infrastructure: The infrastructure sub-index has also seen substantial growth, particularly in basic, technological, and scientific infrastructure.
Challenges in Health Infrastructure: Despite overall improvements, the health infrastructure sub-index declined slightly.
Global Perspective
Singapore topped the rankings this year, followed by Switzerland, Denmark, Ireland, and Hong Kong. The IMD World Competitiveness Ranking evaluates countries based on four key factors: economic performance, government efficiency, business efficiency, and infrastructure.
Implications
South Korea's improved ranking is a testament to the country's ongoing efforts to enhance its global competitiveness. The advancements in business efficiency and infrastructure are expected to attract foreign investment and foster economic growth. However, the decline in the health infrastructure sub-index highlights the need for continued investment in this area.
The Ministry of Economy and Finance expressed satisfaction with the results, stating that the improvement reflects the government's ongoing efforts to enhance the business environment and foster innovation.
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