The Transition to the Service Economy and Development Strategies for Regional Service Industries

C.K. Kim () and Eun Hee Choi ()
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C.K. Kim: Korea Institute for Industrial Economics and Trade, http://www.kiet.re.kr
Eun Hee Choi: Korea Institute for Industrial Economics and Trade, http://www.kiet.re.kr

No 19-12, Industrial Economic Review from Korea Institute for Industrial Economics and Trade

Abstract: The transition to the service economy, which shows the expanding influence of the service industry on the economy in terms of employment and of value-added, highlights the importance of the service industry in the national economy. In addition, increased income levels (due to economic growth), the development of information and communication technology (ICT) and the changes in the population structure — such as lower birth rates and an increase in the number of elderly people — have created and expanded demand for new and existing services. The service industry is expected to account for a larger portion of the national economy in the coming years. Accordingly, there have been many calls for boosting the overall vitality of the economy and domestic demand by securing new economic growth engines through discovery and development of high value-added services. Recognizing the important role of service industries, the Korean government has promulgated various policies aimed at the service industry, including Measures to Advance the Service Industry (2008-2009), Measures to Stimulate Investment in Promising Service Industries (2014), Development Strategies for the Service Economy (2016), and Service R&D Implementation Strategies (2018), among others. Like the central government, local governments have also recognized the importance of fostering service industries in each region. However, there are several problems in that the local and central governments’ service industry development strategies are not systematic and are being carried out individually. The central government’s policy to develop the service industry is industry-oriented, with a slight lack of consideration for regional characteristics.

Keywords: service industry; value-added; value-added services (search for similar items in EconPapers)
JEL-codes: L80 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2023-01-08
New Economics Papers: this item is included in nep-ict and nep-ure
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