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OECD: ‘S. Korea ranks 20th out of 38 countries in commodity market regulation intensity’

OECD: ‘S. Korea ranks 20th out of 38 countries in commodity market regulation intensity’

Posted July. 11, 2024 07:53,   

Updated July. 11, 2024 07:53


South Korea stands at the 20th lowest level of commodity market regulation among 38 member countries of the Organization for Economic Cooperation and Development (OECD). However, the country was evaluated as having greater intervention in business activities such as retail price control than major countries.

According to the Economy and Finance Ministry on Tuesday, South Korea's product market regulation index (PMR) for 2023, released by the OECD, was 1.35, marking a significant improvement from its 33rd position five years ago. This places Korea at the 20th spot out of 38 OECD countries, its highest-ever ranking. It is also the first time that the PMR is close to the OECD average (1.34). The PMR is an index designed to assess the regulatory policies of individual countries' commodity markets and is published every five years.

However, South Korea's ranking of 36th in the category of ‘intervention in business activity’ is a significant indicator of its market dynamics. This places it as the third most regulated OECD country. Interference in business activities is measured by retail price controls, government intervention in the network sector, and government intervention in the service sector. 'The low score is likely due to the high degree of public ownership in network businesses such as electricity and gas,' said a ministry official, shedding light on the factors contributing to this ranking.

"We plan to actively improve key regulations that are not in line with global standards to support free business activities of Korean companies," the ministry official said.

세종=소설희 기자 facthee@donga.com