Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Korea rises 6 spots to 21st in world competitiveness rankings
Seoul's financial district of Yeouido / Korea Times file
By Lee Yeon-woo
Korea rose six places to rank 21st out of 70 countries in the International Institute for Management Development’s World Competitiveness Ranking, marking its second-highest position since it was first included in the evaluation in 1997, the Ministry of Finance and Economy said Thursday.
Among countries with per capita incomes of more than $30,000 and populations of more than 50 million, Korea ranked second after the U.S., up from third place.
The annual ranking is regarded as one of the most representative indicators of national competitiveness, the ministry said. Covering 70 countries, including OECD members and emerging economies, the IMD assessment evaluates the capacity of nations and businesses to increase wealth and improve quality of life.
Korea’s previous highest ranking was 20th in 2024, while its lowest was 41st in 1999.
Across the four main categories, sharp gains in business efficiency and infrastructure drove Korea’s overall rise. Government efficiency remained unchanged from the previous year, while economic performance edged down.
Business efficiency saw the biggest jump, climbing from 44th to 34th. All five subcategories improved: Productivity and efficiency rose from 45th to 34th, labor market from 53rd to 45th, finance from 33rd to 29th, management practices from 55th to 49th, and attitudes and values from 33rd to 18th.
The country’s infrastructure was also assessed positively, rising from 21st to 15th. Compared with the previous year, rankings improved in basic infrastructure from 35th to 28th and technological infrastructure from 27th to 21st, while scientific infrastructure remained at a high level, ranking second.
The economic performance category fell from 11th to 14th. Although international trade and international investment improved slightly, from 34th to 33rd and from 21st to 20th, respectively, the overall ranking declined due to lower rankings in the domestic economy, from eighth to 10th; employment, from fifth to seventh; and prices, from 30th to 40th.
The government efficiency category remained unchanged from the previous year. Among its five subcategories, rankings improved in tax policy, from 30th to 22nd; institutional framework, from 24th to 21st; and societal framework, from 36th to 30th. However, these gains were offset by declines in public finance, from 21st to 22nd, and business legislation, from 50th to 53rd.
The ministry said it plans to use the ranking results to analyze the strengths and weaknesses of the Korean economy and continue its efforts to improve systems and drive innovation.