Korea’s ranking in terms of economic competitiveness remained unchanged at 22 among 60 countries in 2013 for the third straight time, according to the Switzerland-based International Institute for Management Development.

Asia’s fourth largest economy earned high marks for having a high education level, skilled workforce and reliable infrastructure.

However, it received poor scores in the areas of cost of living, tourism and direct investment flows.

Its weaknesses also included having high tariff barriers, a lack of efficiency in business accounting practices, and a poor education environment for primary and secondary students.

The IMD said that the Korean economy faces challenges in curbing household debt and implementing welfare policy for the middle class, while maintaining low inflation, creating jobs and adhering to a sound fiscal policy this year.

The U.S., Switzerland, Hong Kong, Sweden and Singapore were among the top five in economic competitiveness.

China overtook Korea and ranked 21, while Japan moved up to 24 this year from 27 last year.

“China and Japan are also increasing their competitiveness. In the case of Japan, Abenomics seems to be having an initial impact on the dynamism of the economy,” the IMD said in a statement.


By Park Hyong-ki
(hkp@heraldcorp.com)