Korea’s competitiveness in the financial sector lags behind global leaders such as the United States and Britain, a poll indicated Thursday.

The survey carried out on 158 chief executive officers from the country’s financial firms, assessed the local industry’s competitive rating at 67.6 of a possible 100 points, the Korea Chamber of Commerce and Industry said.

The possible 100 points is a benchmark set by the KCCI to reflect the perceived competitive level of leading U.S. and British financial institutions that are global players.

“On the whole, the poll showed the country’s financial sector is backward compared to the size of the national economy,” the country’s largest private economic organization said. It stressed that if Korean wants to make the next leap forward, it must build up its financial sector so it can compete with overseas rivals.

A weak financial sector can restrict money from reaching manufacturers and other businesses in a timely manner, and therefore raise the overall costs of doing business. A strong financial market is also a good source of employment.

By individual sector, the latest findings showed South Korea’s banks attained the highest score of 69.9 points, with insurers and securities firms following at 66.7 points and 66.0 points, respectively.

Credit finance companies, including credit card firms, received 63.5 points from CEOs and asset management companies were awarded 63.1 points.

The top financial executives added that excessive government regulations, lack of qualified manpower and the relatively small size of local financial firms effectively hindered growth of the sector vis-a-vis competitors in other countries.

The KCCI also said local CEOs called for revisions to the country’s regulatory rules to comply with best practice in foreign countries, as well as to facilitate mergers and acquisitions between financial firms and strengthen overseas networks. 

(Yonhap News)