Business Environment
South Korea has the 7th most business-friendly regulatory environment in a global ranking of the ease of doing business. It was recognized by the World Bank Group as a country in which it is very easy to resolve legal disputes (2nd), obtain an electricity connection (2nd), and trade across borders (3rd). However, it was reported that Korea has not much improved its handling of property registration or investor protection.
According to the Ministry of Strategy and Finance (MOSF) on October 29, Korea ranked 7th among 189 countries this year in the Doing Business Report made by the World Bank Group. For three consecutive years, the country has been in the top 10. In 2011, the nation’s ranking edged up by eight places from 2010 to 8th. In 2012, it retained its 8th ranking.
Singapore topped the list and Hong Kong SAR, China, New Zealand, the United States, and Denmark followed. There were no changes in the top 5 rankings from last year, but Malaysia’s ranking went up by six notches from 2012 to 6th place in 2013.
Among G20 member countries, Korea ranked 2nd following the US. The world’s 13th-largest economy was the nation with the 4th most business-friendly environments after New Zealand, the US, and Denmark among OECD member states. Korea’s ranking exceeds those of other major economies in East Asia such as Japan (from 24th to 27th), and China (from 91th to 96th).
MOSF said that Korea’s rise in the ranking in 2013 is attributable to better performance in eight different categories, including time needed for starting business, and costs for construction permits. However, the country showed poor performance in two indicators, which are required time for export clearance (from 7 days to 8 days), and costs for exporting per container (from US$665 to US$670).