1. International Competitiveness of Korean Government

2. “Is Korea competitive globally?”

3. The World Competitiveness Scoreboard 2005 (Source: IMD World Competitiveness Yearbook 2005) #35 (2004)  #29 (2005)

4. The World Competitiveness Scoreboard 2005 (Source: IMD World Competitiveness Yearbook 2005)

5. Growth Competitiveness Index rankings 2005 and 2004 comparisons #17(2005)  #29(2004) (Source: WEF Global Competitiveness Report 2005-2006)

6. Growth Competitiveness Index rankings 2005 and 2004 comparisons (Source: WEF Global Competitiveness Report 2005-2006)

7. OECD countries above/below us in IMD recordUSAIcelandCanadaFinlandDenmarkSwitzerlandAustraliaLuxembourgIrelandNetherlandsSwedenNorway New Zealand AustriaJapan United Kingdom GermanyBelgium France Czech Republic HungarySpain Slovak Republic PortugalTurkeyGreeceItalyMexicoPoland (Source: IMD World Competitiveness Yearbook 2005)

8. Asian Region countries in IMD record Hong Kong SingaporeTaiwanJapanThailandMalaysia ChinaIndiaPhilippinesIndonesia (Source: IMD World Competitiveness Yearbook 2005)

9. “Is the international competitiveness meaningful?”

10. Composition of Growth Competitive Index 1.Technology Index 2.Public Institutions Index 3.Microeconomic Index

11. 1. Technology Index Innovation subindex (¼ Survey + ¾ hard data) Technology Transfer subindex (unweighted average of two technology transfer Survey question) Information Communication Technology(ICT) subindex ( 1/3 information and communication technology Survey data + 2/3 information and communication technology hard data) 2. Public Institutions Index Contracts and law subindex (Survey) Corruption subindex (Survey) 3. Microeconomic Index Microeconomic stability subindex (5/7 macroeconomic stability hard data + 2/7 macroeconomic stability Survey data) Institutional Investor country credit rating Government wasting variables (Survey) (Source: WEF Global Competitiveness Report 2005-2006)

12. Public Institutions Index Components Contracts and law subindex Corruption subindex

13. Is the judiciary in your country independent from political influences of members of government, citizens or firms? Are financial assets and wealth clearly delineated and well protected by law? Is your government neutral among bidders when deciding among public contracts? Does organized crime impose significant costs on business? Contracts and law subindex (Source: WEF Global Competitiveness Report 2005-2006)

14. Corruption subindex How commonly are bribes paid in connection with import and export permits? How commonly are bribes paid when getting connected with public utilities? How commonly are bribes paid in connection with annual tax payments? (Source: WEF Global Competitiveness Report 2005-2006)

15. Factor Breakdown of the World Competitiveness Factor Breakdown of the World Competitiveness 1.Economic Performance 2.Government Efficiency 3.Business Efficiency 4.Infrastructure

16. Economic Performance Economic Performance Overall43 Domestic Economy32 International Trade34 International Investment51 Employment8 Prices56 (Source: IMD World Competitiveness Yearbook 2005)

17. Government Efficiency Overall31 Public Finance14 Fiscal Policy15 Institutional Framework30 Business Legislation34 Societal Framework58 (Source: IMD World Competitiveness Yearbook 2005)

18. Business Efficiency (Source: IMD World Competitiveness Yearbook 2005) Overall30 Productivity & Efficiency42 Labor Market26 Finance38 Management Practices26 Attitudes and Values25

19. Infrastructure (Source: IMD World Competitiveness Yearbook 2005) Overall23 Basic Infrastructure23 Technological Infrastructure2 Scientific Infrastructure15 Health and Environment33 Education40

20. Government Efficiency components Public Finance Fiscal Policy Institutional Framework Business Legislation Societal Framework

21. Public Finance Government budget surplus/deficit US$ billions/ % of GDP Central government domestic debt US$ billions/ % of GDP Central government foreign debt US$ billions/% of GDP Central government total debt - real growth % change Interest payment % of current revenue Management of public finances (Survey) Total reserves Including gold and official reserves (gold = SDR 35 per ounce) General government expenditure % of GDP (Source: IMD World Competitiveness Yearbook 2005)

22. Fiscal Policy Collected total tax revenues %of GDP Collected personal income tax On profits, income and capital gains, as a % of GDP Collected corporate taxes On profits, income and capital gains, as a % of GDP Collected indirect tax revenues Taxes on goods and services as a % of GDP Collected capital and property taxes % of GDP Collected employee’s social security contribution Compulsory contribution as a % of GDP Collected employer’s social security contribution Compulsory contribution as a % of GDP Effective personal income tax rate % of an income equal to GDP per capita Corporate tax rate on profit Maximum tax rate, calculated on profit before tax Consumption tax rate Standard rate of VAT / GST Employee’s social security contribution rate Compulsory contribution as a % of an income Employer’s social security contribution rate Compulsory contribution as a % of an income Real personal taxes (Survey) Real corporate taxes (Survey) Tax evasion (Survey) (Source: IMD World Competitiveness Yearbook 2005)

23. Institutional Framework Real short-term interest rate Real discount / bank rate Cost of capital Survey Interest rate spread Lending rate minus deposit rate Country credit rating Rating on a scale of 0-100 assessed by the Institutional Investor Magazine ranking Central bank policy Survey Exchange rate policy Survey Exchange rate stability Parity change from national currency to SDR, 2004/2002 Policy direction of the government Survey Legal and regulatory framework Survey Adaptability of government policy Survey Government decisions Survey Political parties Survey Transparency Survey Public service Survey Bureaucracy Survey Bribing and corruption Survey (Source: IMD World Competitiveness Yearbook 2005)

24. Business Legislation Customs' authorities Survey Protectionism Survey Public sector contracts Survey International transactions Survey Foreign investors Survey Access to capital markets Survey Investment incentives Survey Government subsidies To private and public companies as a percentage of GDP Subsidies Survey Competition legislation Survey Product and service legislation Survey Price controls Survey Parallel economy Survey Regulation intensity Survey Ease of doing business Survey Creation of firms Survey Start-up days Number of days to start a business Labor regulations Survey Unemployment legislation Survey Immigration laws Survey (Source: IMD World Competitiveness Yearbook 2005)

25. Societal Framework Justice Survey Personal security and private property Survey Risk of political instability Survey Social cohesion Survey Income distribution - lowest 20% Percentage of household incomes Income distribution - highest 20% Percentage of household incomes Discrimination Survey Females in parliament % of total seats in Parliament Female positions %of total legislators, senior officials and managers Gender income ratio Ratio of estimated female to male earned income globally Harassment and violence Survey (Source: IMD World Competitiveness Yearbook 2005)

26. “Can Korean government do anything to enhance it?”

27. 10 Strongest Criteria in Government Efficiency

28. 1 Exchange rate stability (2004/2002)2 2 Total reserves (Including gold and official reserves)4 3 Government subsidies (To private and public companies as a % of GDP)4 4 Consumption tax rate (Standard rate of VAT / GST)5 5 Interest rate spread (Lending rate minus deposit rate)7 6 Interest payment (% of current revenue)8 7 Effective personal income tax rate (% of an income equal to GDP per capita)13 8 Subsidies do not impair economic development (Survey)13 9 Government budget surplus/ deficit (% of GDP)14 10 Central government domestic debt (% of GDP)15 (Source: IMD World Competitiveness Yearbook 2005)

29. 10 Weakest Criteria in Government Efficiency

30. 1 Females in parliament (% of total seats in Parliament) 58 2 Discrimination (race, gender, etc.) poses a handicap in society (Survey) 54 3 Immigration laws prevent your company from employing foreign labor (Survey) 53 4 Policy direction of the government is not consistent (Survey) 52 5 The risk of political instability in your economy is very high (Survey) 51 6 Price controls affect pricing of products in most industries (Survey) 51 7 Central government total debt-real growth % change, based on national currency 49 8 Political parties do not understand today’s economic challenges (Survey) 49 9 Female positions % of total legislators, senior officials and managers 48 10 Ease of doing business is not a competitive advantages for your economy 45 (Source: IMD World Competitiveness Yearbook 2005)

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