A Survey by Japan Center for Economic Research Says

Korea placed fifth in the world in terms of digital potential, according to a survey conducted by the Japan Center for Economic Research.

Korea is ranked fifth in the world in terms of digital potential, the Nihon Keizai Shimbun (Nikkei) reported on Dec. 7, quoting a survey conducted by the Japan Center for Economic Research (JCER).

The survey selected Korea as a leading country in digital transformation (DX), which will determine economic growth amid changes in the global supply chain due to the 4th industrial revolution and the COVID-19 pandemic.

JCER surveyed 84 countries around the world to determine each country's capability to pursue digital transformation. It analyzed about 20 years of data in four categories -- communication infrastructure; human capital and R&D;  business environment, regulations and governance; and information technology (IT)-related industries.

Korea, which ranked eighth in 2010, rose to fifth place with 70.8 points in 2020. The JCER noted that Korea has promoted online administrative services using e-government as an important policy. The center added that Korea preemptively advanced its telecommunications infrastructure by competing with the United States for the commercialization of 5G mobile technology.

Six of the top 10 countries other than Korea were found to be in Europe. In particular, Sweden ranked first overall with 74.9 points. It was included in the top 10 standings in all four categories. The country promoted the use of electronic technology at companies and homes based on a digital strategy that had been promoted since June 2017. Germany came in fourth, and Ireland, which attracted many IT giants such as Apple by lowering its corporate tax rate, nabbed seventh place.

Singapore ranked second overall with the highest DX potential in Asia. The country earned a high score for its high level of education and abundance of high-quality IT human resources. Japan stood 16th, two notches lower than 2010. The drop was attributed to weakened competitiveness in human capital, R&D, and IT-related industries. In particular, Japan’s ranking in the human capital and R&D category slid from 10th in 2010 to 18th in 2020.

Korea ranked second in that category after Germany. The United States ranked ninth and China 41st (55.5).

Vietnam showed the highest jump, from 77th to 55th. Since joining the World Trade Organization (WTO) in 2007, the Southeast Asian country has improved regulations and business practices. Vietnam’s DX infrastructure has expanded as IT-related talent and companies have increased following Samsung Electronics' entry into the country in 2009.

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