Overview

• South Korea fell seven places to 27th among 69 economies in the 2025 IMD Global Competitiveness Ranking
• Business efficiency plunged to 44th from 23rd, with every subcategory—management practices, attitudes and values, labor market flexibility, productivity and finance—registering declines
• The infrastructure ranking slipped from 11th to 21st, led by technological infrastructure’s drop from 16th to 39th and lower scores in basic infrastructure, education and health services
• Economic performance rose to 11th from 16th, driven by gains in international trade, investment and consumer price stability
• Government efficiency improved to 31st from 39th, but officials linked the overall slump to last year’s political and economic uncertainty and vowed coordinated reform efforts