The latest analysis by a local business lobby has found that economic freedom is on the rise in South Korea, while economic autonomy is contracting due to government expansion and labor market regulations.

The Federation of Korean Industries(FKI) said on Monday that it analyzed the U.S.-based Heritage Foundation's annual index of economic freedom.

According to the FKI, South Korea's overall ranking out of 180 countries around the world climbed from 34th in 2011 to 25th in 2020.

The U.S. think tank gave South Korea 74 points in terms of economic freedom, placing it in the "Mostly Free" category.

Under "Government Size," points dropped in tax burden, government spending and fiscal health, while the country also lost points in labor freedom under the "Regulatory Efficiency" category.

In the 2020 ranking announced in March, Singapore topped the list with 89-point-four points, surpassing Hong Kong, which fell one ranking due to the U.S.-China trade dispute, after maintaining the top position for a decade.