Korea has dropped in global competitiveness for the second year running, due chiefly to red tape and a poorly performing financial services industry, a report claims.
Korea ranked 26th in competitiveness in an annual report by the World Economic Forum, down one notch from a year ago. The report assessed the "competitiveness landscape" of 144 economies.
The report is regarded as the world's most reliable competitiveness ranking alongside one by the International Institute for Management Development.
Korea ranks low particularly in indicators for institutions, which gauges the severity of regulations, at 82nd, labor market efficiency at 86th, and financial market development at 80th.
Korea "loses further ground in two of the three areas in which historically it has performed poorly. It now ranks 82nd (down eight places) in the institutions pillar and 86th (also down eight) in the labor market efficiency category. Although stable, the financial market development pillar remains a sore point (80th, up one), preventing Korea from closing the competitiveness gap with the three other Asian Tigers," the report said.