IMF financial development index ranks Korea sixth in world

한국금융발전지수 183개국중 6위
Newly released figures by the International Monetary Fund rank Korea sixth in the world in terms of financial development.
The assessment is in sharp contrast to a different track record by the World Economic Forum based on surveys of businesses.
Park Jong-hong looks into the digits.
The latest IMF index puts Korea high on the country list for overall financial health.
This is based on a working paper by the International Monetary Fund released in January covering a broad range of financial indicators.
The paper which looked at 2013 data noted that Korea ranked sixth in the world behind Switzerland, Australia, Britain, the U.S. and Spain.
The study observed the financial development trends of 183 countries looking at three key factors … financial depth, access, and efficiency and was measured by a score range of zero to one … with one being the highest possible level.
Until recently, the IMF had used only the financial depth category to reflect the scale of a country′s financial sector compared with the real economic activities.
This is the first ever broad-based evaluation by the IMF although it′s not an official release.
The sub-categories of assessment included the portion of pension fund asset per GDP, return on assets, the aggregate value of listed stocks compared to the GDP and so on.
The Bank of Korea said Korea′s financial development index of zero-point-eight-five-four is far higher than the OECD average of zero-point-six-six-seven.
In particular, Korea ranked at number one for financial market efficiency receiving the highest possible score of one-point-zero which measured the turnover ratio of listed stocks.
These results are in stark contrast to an assessment by the World Economic Forum last year.
While the latest report puts Korea ahead of the pack, a BOK official noted that the figures should not be overestimated as they lack variables like financial innovation, diversity of service and globalization.
Park Jong-hong Arirang News.

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