Japan vs South Korea
A data-driven side-by-side: investment score, economy, business climate, political stability, and tax — to help you decide where to invest, incorporate, or relocate.
Overall: Japan ranks higher
Japan scores 82/100 on our composite investment index, ahead of South Korea at 80/100. This blends economic strength, political stability, business climate, financial maturity, and growth outlook. Read the breakdown below to see where each country actually leads.
Category breakdown
80
Economic strength
South Korea leads
82
88
Political stability
Japan leads
78
85
Business climate
Japan leads
82
72
Financial maturity
South Korea leads
80
55
Growth outlook
South Korea leads
70
Macro snapshot
4,230
GDP (USD bn)
+2520.0 bn
1,710
1.0%
GDP growth (%)
-1.2 pp
2.2%
$34,000
GDP per capita (USD)
+1000.0
$33,000
2.7%
Inflation (%)
+0.2 pp
2.5%
0.8%
FDI (% of GDP)
-0.4 pp
1.2%
255%
Public debt (% of GDP)
+201.0 pp
54%
124
Population (M)
+72.0M
52
Japan — strong sectors
- Technology8.0% of GDP88
- Automotive5.0% of GDP85
- Manufacturing20.0% of GDP82
- Financial Services6.0% of GDP78
South Korea — strong sectors
- Semiconductors8.0% of GDP95
- Technology12.0% of GDP90
- Automotive5.0% of GDP82
- Manufacturing25.0% of GDP82
Frequently asked
Which is better for investment: Japan or South Korea?
Our composite investment index gives Japan a score of 82/100 and South Korea a score of 80/100. Japan ranks higher overall, but the right answer depends on your sector and risk tolerance — see the category breakdown above.
Is Japan a safer market than South Korea?
Risk classification puts Japan as safe (Strong fundamentals, stable governance, favorable investment climate) and South Korea as safe (Strong fundamentals, stable governance, favorable investment climate).
Which has higher GDP growth: Japan or South Korea?
Japan is currently growing at 1.0% per year, vs 2.2% for South Korea. South Korea has the faster headline growth rate today.