South Korea has been ranked 12th in the annual Human Development Index released by the U.N. Development Program (UNDP). The index takes into account each country's per capita income, life expectancy, educational attainment and other factors.

In the 2010 index released Friday, South Korea jumped 14 notches to 12th after having remained in 26th place from 2006 to 2009.

South Korea’s ranking rose after European countries --- including France, Finland, Italy and Spain --- saw their rankings plunge in the wake of last year’s global financial crisis and this year’s debt crisis.

Norway topped the rankings. Australia ranked second followed by New Zealand, the United States and Iceland.

The Human Development Index is used to determine whether a country is a developed, developing or underdeveloped. It also measures the impact of economic policies on quality of life.