China catching up to Korea
Survey ranks competitiveness of countries
China is gaining on South Korea in national competitiveness, according to a survey by the Institute of Industrial Policy Studies.
The state-run think tank released the "National Competitiveness Report 2003" yesterday.
According to the report, Korea was ranked 25th out of 68 countries in national competitiveness this year, down from 24th last year. On the other hand, China took the 32nd position this year, up sharply from 37th last year.
The United States took the top position, followed by Sweden, Britain and Canada.
In another survey released in May by the Switzerland-based International Institute for Management Development, the World Competitiveness Yearbook for 2003 listed Korea at 15th among 30 economies, behind China, which was 12th.
As more companies open production facilities in China, Korea needs to change its ways, said Cho Dong-sung, professor of business administration at Seoul National University.
"Korea should give up its strategy focused on lowering production cost," said Mr. Cho, who led the Institute of Industrial Policy Studies survey.
He said that even if Korea tries to improve efficiency and lower costs, it still can't compete with China, with its huge population, cheap labor, wide territory and abundant resources.
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