The U.S. took the top spot, followed by Singapore in second place. China ranked seventh, while Japan came in 19th.
Among the 32 countries with populations of more than 20 million, South Korea placed fourth.
South Korea performed particularly well in technology infrastructure and efficiency, placing third in both categories. Its technology infrastructure ranking improved from seventh a year earlier, while its efficiency ranking rose from 13th.
The country also ranked first in research and development (R&D) spending in proportion to gross domestic product (GDP) and eighth in AI adoption.
The IMD revised its assessment this year by incorporating AI into its digital competitiveness index and recalculating past results, meaning that South Korea's rise to 10th place is based on a comparison with its readjusted standing from a year earlier.
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