Promotion Time
The national competitiveness ranking of Korea, invited to the Group of Seven (G7) Summit scheduled from May 19 to 21 in Hiroshima, Japan, has emerged as the sixth in the world, demonstrating a level comparable to G7 nations.
On May 17, the Federation of Korean Industries (FKI) announced the findings from their comparative analysis of Korea's standing relative to G7 countries across five domains: military strength, economic power, innovation capability, economic security, and soft power. The analysis incorporated reports from global organizations such as the International Monetary Fund (IMF) and numerous evaluation institutions over the past three years.
In the comprehensive assessment, Korea ranked sixth in 2022. In the 2022 Global National Power Ranking perception survey, a joint endeavor of the BAV Group, a global marketing company, and the Wharton School of the University of Pennsylvania, Korea scored 64.7 points, securing the sixth spot. The United States ranked first with a full 100 points. Among G7 countries, the U.S., Germany (4th place, 81.6 points), and the U.K. (5th place, 79.5 points) ranked higher than Korea. Japan, which was sixth in the 2021 survey, dropped two ranks to eighth. Other G7 countries included France (7th, 63.3 points), Canada (12th place, 43.3 points), and Italy (15th place, 34.1 points).
In the evaluation of military strength, Korea also claimed the sixth spot. In the 2023 Global Military Power Index announced by the U.S.-based Global Firepower, Korea ranked third among the G7 countries, behind the U.S. and the U.K. Excluding nuclear-armed nations like the U.S., Korea was evaluated as a top-tier military power worldwide.
In terms of economic power, Korea also reached G7 standards. Korea's 2022 share of the global export market was 2.8%, ranking 6th following the U.S. (2nd place, 8.4%), Germany (3rd place, 6.7%), and Japan (5th place, 3.0%) within the G7. The import market share was 2.9%, ranking 8th.
Notably, upon inspecting detailed indicators, the share of IT exports of total exports was significantly higher at 29.2% in 2021 compared to the G7 average of 4.8%. This was attributed to Korea's superior industrial structure and competitiveness. However, Korea's GDP last year lagged slightly behind the G7 nations, recording thirteenth place globally (US$1.665 trillion). The impact of rising energy prices and currency fluctuations were identified as significant factors.
Regarding innovation capability, the proportion of R&D investment relative to the 2021 GDP was 4.9% in Korea, twice the G7 average of 2.6% and the second-highest globally. In terms of international patent applications, a measure of each country's innovation capacity, Korea ranked 5th globally, following Japan (1st place) and the U.S. (3rd place). In last year's ranking of international patent applications per company, two Korean companies (Samsung 2nd, LG 9th), one American company (Qualcomm), and three Japanese companies (Mitsubishi, Panasonic, NTT) secured spots in the top ten.
In the supply chain sector, which gauges economic security, the 2020 market share of semiconductors was 18.4%, ranking second in the world after the US (50.8%). Battery production market share in 2021 was 2.5%, ranking 5th in the world.
The market share of battery production was 2.5% as of 2021, ranking 5th in the world, with the U.S. (2nd, 6.2%), Japan (6th, 2.4%), and Germany (7th, 1.6%) among the G7. In the global AI index, it ranks 7th in the world after the U.S. (1st), U.K. (3rd), and Canada (4th), and it was found to be increasing its presence in major advanced industrial sectors that affect international security, such as developing independent space launch technology, which is the seventh in the world.
In terms of cultural competitiveness and soft power, it was somewhat disappointing to record 15th compared to the G7. In the 2023 Global Soft Power Assessment announced by the British Brand Finance, Korea ranked 15th. All G7 countries, including the U.S. (1st), U.K. (2nd), Germany (3rd), Japan (4th), France (6th), Canada (7th), and Italy (9th) were in the top ten.
Kim Bong-man, head of the International Department of the FKI, said, “Korea has achieved sufficient weight compared to the existing G7,” and “We look forward to Korea officially participating in the G7 and expanding to G8 in the long term.”