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Korea Ranks 4th on 'Doing Business Report' by World Bank; Offers Better Business Scene in 2016

By January 30, 2016 at 5:40 am
Daegu, South Korea's third largest city after Seoul and Busan. (Photo : Dan Istitene | Getty Images World)

Korea achieves the highest jump of rank from seventh in 2013 to fourth place in the recent "Doing Business 2016" report of the World Bank.

As analyzed by the Korea Trade Promotion Corporation, the high rank marks the country's best-ever results. The top three ranks include Singapore, New Zealand and Denmark, in respective order. The fifth place goes to Hong Kong while Japan lands on the 34th and China on the 84th place.

Korea topped the category, Getting Electricity, in the first place. However, among the 10 indicators, the country had low grades on Dealing with Construction Permits, Trading Across Borders, Starting a Business, Getting Credit and Paying Taxes.

The country remained steady in the categories Protecting Minority Investors, Resolving Insolvency, Registering Property, and Enforcing Contracts.

In a report by Business Korea, the Registering Property Indicator category improved since the country shortened the process from 7 days to 6.5 days. The land administrative process also made high grades with 27.5 points out of 30.

The time, cost and procedures for Enforcing Contracts were also improved through the Electronic Filling System launched in 2011, which led a higher score. As for the Resolving Insolvency category, Korea also moved upward after the payback rate of credits became better.

As for the country's low grades, analysts believe that it is partly due to other nation's improvement. Asian countries generally experienced decreased in the Trading Borders indicator as compared to the EU countries.

Korea ranked the third on the same category in 2014 but went to 31st place in 2015. Hong Kong was at the second spot in 2014, and fell 45th last year. Singapore, who reigned on top of the category, landed on the 31st on the same period.

The country managed to bag first place in Getting Electricity indicator from 2014 to 2015. This resulted in high appraisal of obtaining electricity reliability and transparency of rate changes.

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