KEF - Korea Employers' Federation

03/07/2024 | Press release | Distributed by Public on 03/07/2024 02:17

KEF Comment on「2024 Index of Economic Freedom Report」

According to the「2024 Index of Economic Freedom Report」recently released by the Heritage Foundation, one of the most prominent think tanks in U.S., Korea's overall economic freedom ranked as 14th out of 184 countries in terms of economic freedom, while its'labor freedom'was evaluated as'Mostly Unfree (87th)'.

The Heritage foundation is annually publishing 「Index of Economic Freedom Report」 which evaluates countries in 12 areas across 4 categories: ① rule of law (property rights, judicial effectiveness, government integrity), ② regulatory efficiency (business freedom, labor freedom, monetary freedom), ③ government size (tax burden, government spending, fiscal health) ④ open markets (trade freedom, investment freedom, financial freedom)

South Korea's economy was rated as'Mostly Free'by recording scores of 73.1 on a 100-point scale, securing 14th place among countries, up one notch compared to last year (15th). However, its'labor freedom (scores of 57.2)'and'tax burden (scores of 59.0)'were evaluated as'Mostly Unfree'.

【Korea's Economic Freedom Index in 12 areas across 4 categories】



"The report reaffirms that Korea's labor market is still undermining the national competitiveness. The labor reform which improves labor flexibility and industrial relations is urgently needed to enhance economic vitality,"commented the KEF.