South Korea ranks 21st in national competitiveness — second-highest ever

The government will draw on the results of the International Institute for Management Development (IMD) national competitiveness assessment to craft a second-half economic growth strategy focused on improving the business environment and spreading the gains from growth.

First Vice Minister of Finance and Economy Lee Hyeong-il chaired the National Competitiveness Policy Council at the Government Seoul Complex on Wednesday, reviewing this year's IMD national competitiveness rankings and discussing ways to strengthen the country's standing going forward.

First Vice Minister of Finance and Economy Lee Hyeong-il [Yonhap]
First Vice Minister of Finance and Economy Lee Hyeong-il [Yonhap]

South Korea ranked 21st among 70 countries evaluated this year — its second-highest placement since it was first included in the assessment in 1997, trailing only the 20th-place finish in 2024.

"We will use the assessment results to further strengthen the areas where our economy excels and translate areas that need improvement into concrete reform tasks," Lee said.

On the business efficiency subcategory, which climbed 10 places from last year to 34th, Lee said the government would "pursue regulatory rationalization and support for corporate AI transformation to ensure that private investment and innovation can proceed smoothly, so that the gains translate into fundamental improvements in competitiveness."

Regarding the infrastructure category, which jumped from 21st last year to 15th, Lee said the government would "continue to restore the science and technology ecosystem and expand the research and development base, and strengthen support so that innovation outcomes in AI, advanced technology and digital transformation can spread across industry as a whole."

On government efficiency, which held steady at 31st for the second consecutive year, Lee said the government would "improve fiscal sustainability and work with related ministries to reform regulations and practices that constrain business activity."

"Above all, it is essential that the fruits of growth do not remain confined to specific sectors but spread evenly across all areas, leading to changes that people can feel in their daily lives," Lee said. "We will continue our efforts to strengthen national competitiveness and give them concrete form through measures including a second-half economic growth strategy, so that the changes are ones the public can actually feel."


y2k@heraldcorp.com