The annual report by the Swiss business school, which ranks some 69 countries around the world based on four key categories — economic performance, government efficiency, business efficiency, and infrastructure — placed South Korea at 27th, down from 20th last year.
Despite a slight improvement in economic performance, the country's overall standing fell due to drastic declines in other categories.
The report pointed out the country need to "address demographic decline with world-lowest birth rates and mounting fiscal pressures." It also stressed the importance of overcoming "regulatory barriers to sustain competitiveness in emerging technologies."
Switzerland rose one spot to claim first place, while Singapore slid to second. They were followed by Hong Kong, Denmark, and the UAE.
Meanwhile, presidential spokesperson Kang Yu-jung attributed the drop to economic struggles and other disruptions caused by "political turmoil" following former President Yoon Seok Yeol's botched Dec. 3 declaration of martial law and his subsequent impeachment.
reporter
Im Yoon-seo
lyseo0330@ajupress.com
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