South Korea  

South Korean households have the 23rd highest domestic savings rate worldwide, equal to 30% of GDP, and also the 13th highest household expenditure rate at 27% of GDP, both of which signify a large domestic market. Inflation rates were a low 3% in 2007. Net interest margins are less than 2.7 percentage points, low by international standards, and South Korea’s levels of non-performing loans are among the 10 lowest, implying a competitive and efficient banking sector. Physical capital per worker is also high, placing the nation 18th on this variable. Korean companies focus on high value added exports, and raw materials as a proportion of total exports are the 12th lowest in the world. South Korea has strong terms of trade, with the ratio of export revenues relative to the cost of the goods imported ranking 24th, globally. However, the country attracts notably low levels of foreign direct investment as a proportion of GDP, ranking only 99th overall.

South Korea ranks seventh for levels of high-tech and ICT exports, with high-tech constituting nearly one-third of total exports. R&D spending is 2.6% of GDP, the sixth highest rate in the world, indicating that South Korean companies also play an important role as technological innovators. Levels of royalty receipts rank ninth in global comparison. South Korea’s technological infrastructure is relatively weaker: personal computer ownership ranks the country at 16th, levels of internet bandwidth at 18th, and secure internet servers per capita at 28th. A relatively small service sector adds value equivalent to 57% of GDP, which is around the global average. Twelve procedures are required to begin a business, suggesting relatively high bureaucratic barriers to entry.

Although South Korea’s democratic regime is less than 20 years old, its developed institutions compare well with more mature democracies. Citizens have a very high degree of civil rights, as well as full abilities to vote and take part in politics. Electoral processes are open and well regulated, and there is a healthy degree of political competition at both legislative and executive branches of power. Numerous checks and balances, including an independent judiciary, help to restrain arbitrary decisions by the country’s political leaders.

With 98% and 96% of South Korean children enrolled in primary and secondary schooling, respectively, South Korea ranks among the top 30 nations on this variable. In addition, 91% attend university, the third highest rate in the world. South Korean workers have, on average, 3.8 years of secondary education, but they have 4.9 years of tertiary education, the highest figure globally. Despite the high level of educated employees, primary school class sizes are the 69th largest in the world, with an average of 27 pupils per teacher. Also, only 96 South Korean girls attend school for every hundred boys, ranking the country 83rd on this variable, suggesting inequality. The weak performance in these areas may be related to the moderate educational spending of $5,800 per student, which is 28th overall, but below other top achieving nations.

South Korea performs well on most objective measures of health. Although the country ranks only 49th for the number of doctors and nurses per capita, it is 13th for the availability of hospital beds. Only 3% of South Koreans are undernourished, and infant mortality is at just five per 1,000 live births, a rate that is 22nd in the world. Health-adjusted life expectancy is 68 years, ranking the country 27th. There is universal access to adequate sanitation, and 81% of people are satisfied with their water quality, ranking the country 33rd on this variable.* However, South Koreans’ health satisfaction levels are just above global averages, with roughly a quarter of the population reporting they have health problems and protracted pain, and 69% of people feeling well rested.* In addition, just two-thirds of Koreans are satisfied with their personal health, ranking in the bottom 10, worldwide.*

South Korea ranks in 38th place, both for security challenges relating to the presence of refugees and other displaced groups, and for significant problems with human flight from dangerous or degrading conditions. The country also faces some challenges related to groups with a history of discrimination or other grievances. Levels of state violence and repression rank South Korea at 40, internationally. In 2008, there were no casualties from civil war or from other internal conflicts. In terms of personal safety, only 2% of South Koreans report having been assaulted in 2008, the fifth-lowest rate worldwide.* However, other crime statistics are less favourable. Levels of homicide are 33rd overall, 62% felt safe walking alone at night, and 13% of people had property stolen in 2008, ranking the country 40th on this latter variable.*

South Koreans can freely participate in politics and change their elected officials. The country’s government is generally well managed and efficient, ranking 25th for its enforcement of the rule of law, 20th for the effectiveness of its bureaucracy, and 30th for the quality of its regulation of investment and competition. Despite this, South Koreans have relatively little faith in their state institutions: 78% believe corruption to be widespread in government, ranking 40th overall, and only 40% think elections are honest and fair, ranking 66th; very low for a developed democracy.* South Koreans’ mistrust of other institutions is even more pronounced. Four-fifths of the population believe that their local businesses are corrupt, which is 43rd in the world.* Only 57% of people are confident in the military, and 35% in the judicial system, placing South Korea in the bottom third on both variables.*

Although South Koreans enjoy high levels of freedom of movement, religion, and speech compared to the global average, only 64% are satisfied with their freedom of choice in their daily lives.* This results in South Korea ranking 81st on this variable. South Koreans also perceive tolerance towards minorities and immigrants in their society to be poor. Only 55% of the population believes that people in their area welcome immigrants, and only 60% thought that their area was a good place for ethnic and racial minorities to live, ranking the country in the bottom third, internationally.*

South Koreans are the 25th most likely people in the Index to say that friends are important to them, and approximately four in five South Koreans feel they can rely on family and friends in times of need.* Levels of membership in organisations is also high in international comparison, with 37% taking part in sports organisations, 27% in arts organisations, and 8% in environmental organisations. South Korea demonstrates low levels of religious practice, ranking 79th globally and suggesting limited access to religious support networks.* Although a high 30% of the population thinks that others can be trusted, other measures of social capital are weaker.* One in five people reported having volunteered in the last month, and 30% had donated money to a charity, both in line with global averages.* Additionally, just 41% of the population reported having helped a stranger, ranking the country 69th on this variable.*

* Data taken from the Gallup World Poll

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