In entrepreneurship, South Korea ranks 32nd out of 120 countries

A graphic from “Assessment of Korean Entrepreneurship and the Future of the Creative Economy,” published by the Korea Economic Research Institute, showing global levels of entrepreneurship. The darker colors indicate higher levels of entrepreneurship. Countries in white had no data available.

Higher ranking comes amid concerns that chaebol are dominating the economy and stifling entrepreneurial zeal

In terms of entrepreneurship, South Korea ranked 32nd out of 120 countries. Among its competitors, South Korea trailed Taiwan while beating out Japan.

On Jan. 25, the Korea Economic Research institute (KERI) released a report titled “Assessment of Korean Entrepreneurship and the Future of the Creative Economy,” an analysis of the 2014 Global Entrepreneurship and Development Index, published by the Global Entrepreneurship Development Institute (GEDI).

Directed by Kwon Tae-shin, the Korea Economic Research institute (KERI) is affiliated with the Federation of Korean Industries (FKI).

The Global Entrepreneurship and Development Index is calculated by combining surveys of groups of experts and the general public in different countries with an assessment of the institutions, including laws and regulations in those countries.

South Korea was 32nd among 120 countries examined by the index, ranking in the top 27%. South Korea has been steadily rising in the ranks: in 2012, it ranked 26th among 79 countries (top 33%), and in 2013, it was 37th among 118 countries (top 31%).

This is eye-opening, given the increasing concerns that entrepreneurship in South Korea is gradually weakening as the country’s chaebol, or family-run conglomerates, are handed down from the founders and their children to the third generation.

Entrepreneurship is believed to play a critical role in making possible the creative economy by promoting independent, productive, and innovative activity while stimulating market activity.

The leading country in the entrepreneurship index was the US, followed by Australia, Sweden, Denmark, and Switzerland.

Countries with a higher nominal gross national income (GNI) per capita that ranked below South Korea included Hong Kong (33rd), Japan (35th), and Kuwait (43rd).

On the other hand, countries with a lower nominal GNI per capita that ranked above South Korea included Taiwan (6th), Chile (15th), Estonia (21st), and Colombia (24th).

According to the report, entrepreneurship generally shows a positive correlation with GNI per capita.

　

By Kwak Jung-soo, business correspondent

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