By Yoon Ja-young
Staff Reporter

South Korea ranked 31st in competitiveness among 55 countries, falling behind Thailand, the International Institute for Management Development (IMD) said Wednesday.

The Switzerland-based institute said in its World Competitiveness Yearbook that Korea ranked 31st in terms of competitiveness in 2008, falling by two notches from 29th of the previous year.

Thailand ranked 27th, rising by six notches. Among the 13 countries in the Asia Pacific region that the institute assessed only two countries, Indonesia and the Philippines, fell behind Korea.

The Ministry of Strategy and Finance attributed Korea's poor ranking to its falling competitiveness in government efficiency. Korea fell by six notches to 37th in this category. It was also very poor in terms of economic performance, ranking 47th.

The country was rated very poorly in terms of international investment, prices, social framework and business legislation. It ranked 50th or below in these categories.

It ranked fifth in scientific infrastructure, and it was also competitive in terms of technology infrastructure, public finance, fiscal policy and employment.

``The fall in competitiveness ranking reflects too much government regulation and a high tax burden on businesses,'' the ministry said.

The United States topped the list as it did last year, followed by Singapore and Hong Kong. While most powerhouses in Europe had stable rankings, Taiwan rose by five notches to 13th, and Japan also moved up by five notches to 22nd. China, meanwhile, fell two notches to 17th.

chizpizza@koreatimes.co.kr