South Korea's Global Competitiveness Ranks 21st in 2026 IMD Report
Quick Look
- South Korea climbed six spots to 21st in global competitiveness in the 2026 IMD report, driven by gains in business efficiency and infrastructure.
- The nation also secured second place among major economies for countries with GDP per capita over $30,000.
AI-generated summary
Why It Matters
South Korea's global competitiveness ranking has improved significantly, reaching its strongest performance since its inclusion in the IMD report in 1997. The ranking is based on economic performance, infrastructure, and government and business efficiency.
By Kang Yoon-seung
SEJONG, June 18 (Yonhap) -- South Korea's global competitiveness rose six notches from a year earlier in 2026, supported by improvements in business efficiency and infrastructure, the International Institute for Management Development (IMD) said Thursday.
South Korea ranked 21st in global competitiveness in the 2026 report, while securing the second spot, behind only the United States, among countries with a gross domestic product (GDP) per capita of US$30,000 or higher and a population of at least 50 million.
The IMD, a Switzerland-based international institution, has released the report annually since 1989 based on countries' economic performance, infrastructure and government and business efficiency.
The latest ranking marked South Korea's strongest performance since it was first included in the report in 1997. Asia's No. 4 economy ranked 20th in 2024.
In detail, South Korea's ranking in business efficiency jumped from 44th to 34th.
Within the business efficiency category, South Korea's productivity ranking rose from 45th to 34th, while labor market competitiveness improved from 53rd to 45th. Its financial market ranking also improved from 33rd to 29th.
The infrastructure ranking rose from 21st to 15th.
In terms of government efficiency, South Korea remained unchanged from the previous year at 31st place. Its ranking in economic performance, meanwhile, fell from 11th to 14th due to weaker performances in employment and inflation.
"The government plans to refer to the IMD assessment results and analyze our economy's strengths and weaknesses. We intend to continue efforts to improve policies and pursue innovation to bolster the country's competitiveness in a comprehensive manner," the finance ministry said.
What to Watch
AI outlook — possibilities, not facts
South Korea will continue to focus on policy innovation to further boost competitiveness.
Likely · Medium term
Open Questions
- What specific policy changes contributed to the improvements?
- Will this trend continue in future reports?
