South Korea vows reform after sharp drop in global competitiveness ranking
SEOUL: South Korea will strive to identify its weaknesses and transform them into opportunities for future growth, Acting Finance Minister Lee Hyoung Il said on Friday, stressing that the country's recent fall in the global competitiveness ranking should serve as a "turning point."
South Korea was ranked 27th out of 69 countries in the 2025 World Competitiveness Ranking published by the International Institute for Management Development (IMD), marking a drop of seven places from last year's record high of 20th, Yonhap news agency quoted the Ministry of Economy and Finance.
The IMD, a Switzerland-based business school, has issued the annual ranking since 1989, evaluating countries based on four key indicators; economic performance, government efficiency, business efficiency, and infrastructure.
"We will thoroughly assess and analyse the identified weaknesses to turn this into an opportunity to enhance our national competitiveness," Lee said during a policy coordination meeting with relevant government agencies and private-sector experts.
In this year's breakdown, South Korea saw a sharp decline in business efficiency, falling to 44th place -- down 21 spots from the previous year.
Addressing challenges in the corporate sector, Lee said the government would work to establish an innovation ecosystem to support the artificial intelligence (AI) transformation and develop a robust talent training framework.
He added that the government plans to work closely with the private sector to tackle structural inefficiencies and promote digital innovation in an effort to improve future rankings.
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