Korea’s competitiveness ranking drops amid business decline

South Korea’s global competitiveness ranking fell sharply this year, marking its steepest decline in nearly a decade amid weakening business efficiency and widening gaps with regional rivals.

According to the latest World Competitiveness Ranking by Switzerland’s IMD Business School, South Korea fell seven spots to 27th out of 69 economies. It had reached a record-high 20th place last year. This marks the country’s sharpest one-year drop since it joined the index in 1997. The decline puts South Korea behind key regional competitors, including Hong Kong (3rd), Taiwan (6th), and China (16th). The IMD index, established in 1989, evaluates countries based on economic performance, government efficiency, business efficiency, and infrastructure.

The sharpest decline came in business efficiency, where South Korea dropped 21 places to 44th. Within that category, “Management Practices” fell 27 spots to 55th. Rankings for “Labor Market” and “Attitudes and Values” each slipped 22 places, while “Productivity and Efficiency” declined by 12.

Kang Yoo-jung, a presidential office spokesperson, acknowledged the setback, citing last year’s weak economic performance and political uncertainty as factors behind the decline. She said the government would launch a coordinated, inter-ministerial effort to address the challenges to national competitiveness.


세종=김수연기자 syeon@donga.com