The Republic of Korea
drops six positions to
25th. Its performance is uneven across the different
dimensions of the Index. Korea possesses a remarkably
sound macroeconomic environment (9th, second only
to Norway among OECD countries). The country also
boasts excellent infrastructure (11th) and educational
systems. Enrollment rates at all levels of education are
among the highest in the world (Korea has the highest
tertiary enrollment in the sample, with a 103 percent
gross rate of enrollment). These factors, combined with
the country¡¯s high degree of technological adoption
(22nd) and relatively strong business sophistication
(24th), contribute to explaining the country¡¯s remarkable
capacity for innovation (17th). However, Korea¡¯s
assessment is considerably weakened by the average
quality of its public and private institutions (74th, down 12
positions), the extreme rigidity and the inefficiencies of
its labor market (78th), and its poorly functioning financial
market (81st). Korea falls sharply in those three areas,
and without tackling these issues decisively, the country
will not be able to close the competitiveness gap with
the three other Asian Tigers.
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public and private institutions (74th, down 12 positions)
the extreme rigidity and the inefficiencies of its labor market (78th)
poorly functioning financial market (81st)