Country Overview
The Republic of Korea has increased the transparency and fairness of public procurement, which help drive investment activity in infrastructure projects. This is also supported by a highly liquid capital market and increased ease of doing business within the country, promoting competition. To improve infrastructure investment outcomes, Korea could implement some measures to better assess infrastructure opportunities to maximise return on infrastructure investments.
See Full Overview Data
GDP per capita
31,431 USD
Population
51.8 million persons
Infrastructure quality
92.1 (0-100 best)
Infrastructure investment
3.1% of GDP
Private infrastructure investment
956.2 5-year average, USD millions
Infrastructure gap
0.1% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

13
1
77.5
Global Leader
24
-
66.5
Top performer
15
6
84.3
Global Leader
45
2
69.6
Contender
15
24
90.8
Global Leader
74
3
11.5
Emerging
18
-
63.1
Top performer
5
1
77.1
Global Leader

Metric Overview

Strengths

Transparency in public procurement

Korea's public procurement notices are made available online and tender documents transparently detail both procurement procedures. The transparency of the process encourages more participation and competition, which drive value for money.

Stocks traded

At 152%, Korea’s value of stocks traded as a share of GDP is the second highest of all InfraCompass 2020 countries. This is a relative decline from Korea's peak of 187% in 2009. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Registering property

According to the World Bank, it takes five and a half days to register a property in Korea. This is significantly less time than the High Income Countries’ average of 24.6 days. As infrastructure projects often involve property rights, the shorter time to register properties, the less costly and risky the project.

Transparency in public procurement

Korea's public procurement notices are made available online and tender documents transparently detail both procurement procedures. The transparency of the process encourages more participation and competition, which drive value for money.

Stocks traded

At 152%, Korea’s value of stocks traded as a share of GDP is the second highest of all InfraCompass 2020 countries. This is a relative decline from Korea's peak of 187% in 2009. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

Registering property

According to the World Bank, it takes five and a half days to register a property in Korea. This is significantly less time than the High Income Countries’ average of 24.6 days. As infrastructure projects often involve property rights, the shorter time to register properties, the less costly and risky the project.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

High income country average

Financial markets:
Stocks traded

Opportunities to Grow

Market sounding and/or assessment

The Republic of Korea currently lacks a requirement for market sounding processes for infrastructure projects. Adding one could allow the government to better determine if there is interest from investors and lenders to provide commercial financing for projects.

Environmental impact analysis

According to the World Bank, the Republic of Korea does not have a regulated requirement for environmental impact assessment. Undertaking environmental feasibility studies can help countries understand and balance environmental and infrastructure outcomes.

Value of closed PPP infrastructure deals

The value of closed PPP infrastructure deals as a proportion of GDP is the lowest out of the High Income Countries, at only 0.004%. This is significantly lower than the High Income Countries’ average of 0.11%. A low value may reflect a preference for publicly-funded models.

Market sounding and/or assessment

The Republic of Korea currently lacks a requirement for market sounding processes for infrastructure projects. Adding one could allow the government to better determine if there is interest from investors and lenders to provide commercial financing for projects.

Environmental impact analysis

According to the World Bank, the Republic of Korea does not have a regulated requirement for environmental impact assessment. Undertaking environmental feasibility studies can help countries understand and balance environmental and infrastructure outcomes.

Value of closed PPP infrastructure deals

The value of closed PPP infrastructure deals as a proportion of GDP is the lowest out of the High Income Countries, at only 0.004%. This is significantly lower than the High Income Countries’ average of 0.11%. A low value may reflect a preference for publicly-funded models.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

High income country average

Detailed Data

This section shows country data for each of the 41 metrics. Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

Republic of Korea

High Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

84.3 (-0.2)
68.3

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

74.7 (+1.5)
74.3

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

50.0
48.1

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

59.1 (+6.4)
61.9

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Republic of Korea

High Income Countries Average

84.3 (-0.2)
68.3
74.7 (+1.5)
74.3
Yes
-
50.0
48.1
59.1 (+6.4)
61.9
Yes
-

Country Overview Data

The Republic of Korea has increased the transparency and fairness of public procurement, which help drive investment activity in infrastructure projects. This is also supported by a highly liquid capital market and increased ease of doing business within the country, promoting competition. To improve infrastructure investment outcomes, Korea could implement some measures to better assess infrastructure opportunities to maximise return on infrastructure investments.
GDP per capita

31,431 USD

Population

51.8 million persons

Infrastructure quality

92.1 (0-100 best)

Infrastructure investment

3.1% of GDP

Private infrastructure investment

956.2 5-year average, USD millions

Infrastructure gap

0.1% of GDP

GDP

1,630 USD billion

GDP growth rate

2.0%

GDP per capita growth rate

-5.7%

Gini coefficient

31.6 (0-100 worst)

Gross Government Debt

40.0% of GDP

Inflation rate

0.5%

Summary credit rating

86.0 (0-100 best)

Unemployment rate

3.7%

Urbanisation ratio

81.0% of total population

Road connectivity

89.5 (0-100 best)

Quality of road infrastructure

5.9 (1-7 best)

Efficiency of train services

5.9 (1-7 best)

Efficiency of air transport services

5.9 (1-7 best)

Efficiency of seaport services

5.5 (1-7 best)

Electricity access

100.0% of population

Electricity supply quality

3.3% of output lost

Exposure to unsafe drinking water

1.8% of population

Reliability of water supply

6.2 (1-7 best)

Digital Adoption Index

0.9 (0-1 best)

Mobile-broadband subscriptions

113.6 per 100 population

Fixed-broadband Internet subscriptions

41.6 per 100 population