Excessive Regulations
The Korea Enterprises Federation announced on March 16 that South Korea came in 15th out of 184 countries in the Heritage Foundation’s Index of Economic Freedom but it recorded a very low score in the category of freedom in the labor market.
South Korea’s latest overall score in the annual index is 73.7, which means South Korea is a mostly free economy. It came in fifth among 39 Asia-Pacific countries, behind Singapore (first), Taiwan (fourth), New Zealand (fifth), and Australia (13th).
South Korea’s score stood at 56.2, 60.1, and 60 in freedom related to the labor market, tax, and investment and finance, respectively. In the labor market category in particular, the foundation classified South Korea as a non-free economy. In this category, the United States, Italy, Canada, Japan, the United Kingdom, France, and Germany scored 76.3, 70.6, 69, 66.8, 66.2, 59.2 and 52.8, respectively.
“The foundation’s report shows that militant union activities and excessive labor market regulations are still hindering economic activities in South Korea,” the federation said, adding, “The South Korean government’s ongoing deregulatory effort related to working hours will be the first step for a more flexible labor market.”