South Korea ranked seventh in the global scoreboard on manufacturing environment, a research showed.
According to a recent report by U.S-based researcher Brookings Institution, Korea scored 73 out of perfect 100 in the overall industrial environment measuring policies and regulations, tax policy, energy, transportation, and health costs, workforce quality, and infrastructure and innovation.
In comparative scale against 18 other industrial majors, it came seventh, trailing just behind Japan, Canada, and the Netherlands that scored 74.
The United Kingdom and Switzerland shared the top with 78 points, followed by the United States with 77 points. They scored high for pro-business policies, cost considerations, workforce investments, and infrastructure.
At the lower end were India (57 points), Mexico and Russia (56 points), Indonesia (53 points) with Brazil (51 points) at the bottom.
By criteria, Korea scored 18 points out of 25 in infrastructure and innovation and tied for the fourth place with France, Switzerland, and China. It ranked the fifth in workforce quality with 18 points out of 25. In tax policies, Korea scored 9 points out of 15 and was placed in the bottom bracket with China (8 points), the U.S. (7 points) and Brazil (7 points).
In overall policies and regulations, Korea earned 18 points on a 20-point scale but ranked the ninth with Poland as others scored perfect. For energy, transportation, and health costs, it ranked eighth with a score of 10 out of 15.
China remained as the world’s biggest manufacturing powerhouse in terms of output and percentage of its national output generated by the manufacturing sector.
To improve manufacturing environment, the institute advised pursuit of “a governance strategy that emphasizes political and economic predictability, and open trade policies.” It also recommended providing financial incentives to promote innovation, education, and workforce development along with others such as advancing new technologies and helping small ventures with research and workforce development.
By Seo Jin-woo and Cho Jeehyun
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