The Organization for Economic Cooperation and Development (OECD) announced the results of the 2023 Product Market Regulation (PMR) indicator on July 10. Korea’s PMR indicator reached the OECD average level for the first time in history and ranked 20^th* among 38 OECD member states, marking its highest position ever. When including 9 non-OECD countries, Korea ranked 22^nd out of 47 countries.

^* Compared to the 2018 PMR result, where Korea ranked 33rd, the overall ranking has improved by 13 places. (Note: The methodology used in this evaluation differ slightly from those used in 2018.)

※ The stronger the regulation, the lower the PMR ranking
(If ranked 1^st, regulations are the least stringent; If ranked 38^th, regulations are the most stringent)

By categories, the ‘Distortions Induced by State Involvement’ ranked 21^st, and ‘Barriers to Domestic and Foreign Entry’ ranked 25^th, both nearing the median level among OECD countries. By indicators, Korea received positive assessments in regulations impact evaluation (3^rd), administrative and regulatory burden (14^th), and distortions induced by public ownership (15^th) while ranking lower in barriers in service and network sectors (24^th), involvement in business operations (36^th), as well as barriers to trade and investment (36^th). 

< Rankings by Key Indicators >

Overall, OECD has assessed that competitive product markets can boost productivity, employment, and living standards and Korea’s product market regulation indicator is close to the OECD average.

To be specific, Korea’s regulatory barriers to entry and competition in the energy, transport, and e-communications sectors are higher than the OECD average. Obtaining licenses and permits can be cumbersome for businesses as its licensing regime is more burdensome than the average OECD economy. In terms of regulations of lobbying activities, Korea is rated highly (8^th in OECD), though transparency requirements imposed on public officials involved in the regulatory process have room for further improvement. Strict regulations are observed in the service sectors such as energy, fixed e-communications, transport sectors (excluding air transport), retail sale of medicines, and professional services (lawyers, accountants, architects, real estate agents).

< Changes in PMR Rankings of OECD Member States >

a.       The updated 2018 PMR, with some member countries added to the statistics in 2021.

The government will continue to strive for Korea’s regulatory environment to be reasonably evaluated in the international community and recognized as an excellent market system both domestically and internationally. In particular, following the Dynamic Economic Roadmap announced this July, efforts will persistently be made to improve major regulations that do not meet global standards, including sectors identified as somewhat deficient in the evaluation, to support the unhindered business activities of Korean enterprises.

Please refer to the attached files.