Key facts
- South Korea ranked 21st globally in the 2026 IMD competitiveness report.
- This is the country's highest ranking since first being included in the report in 1997.
- Business efficiency and infrastructure rankings saw significant improvements.
- Economic performance ranking declined due to weaker employment and inflation.
- South Korea ranked second among countries with GDP per capita over $30,000 and populations over 50 million.
South Korea's global competitiveness has seen a significant improvement, climbing six notches to reach 21st place in the 2026 report by the International Institute for Management Development (IMD). This marks the country's best performance since it was first included in the annual rankings in 1997.
The enhanced ranking is attributed to notable advancements in business efficiency and infrastructure. Within the business efficiency category, South Korea's productivity ranking improved from 45th to 34th, and its labor market competitiveness rose from 53rd to 45th. The financial market ranking also saw an uptick, moving from 33rd to 29th.
The infrastructure category experienced a substantial jump, with its ranking improving from 21st to 15th. However, the government efficiency ranking remained static at 31st place.
Despite the overall positive trend, South Korea's economic performance ranking saw a slight decrease, falling from 11th to 14th. This dip is attributed to weaker performances in employment and inflation.
Among countries with a gross domestic product (GDP) per capita exceeding $30,000 and a population of at least 50 million, South Korea secured the second position, trailing only the United States.