The 26-year-old Ryu, who took command of the tournament with a course and tournament record 61 in Saturday's second round, became the second multiple winner on the LPGA Tour this season while picking up her fifth career victory.
Ryu is the third player from South Korea to become world number one, joining Park In-bee and Shin Ji-yai.
"Dreams come true. I always dreamed about it. I cannot believe it," Ryu said.
Jutanugarn, who did not compete in the weekend's event in Arkansas, dropped to number two, while Ko slipped to the third spot.
American Lexi Thompson and Chun In-gee of South Korea rounded out the top five.
(Editing by Larry Fine)
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