Hong Nam-ki Awakens the Service Development Act Sleeping for 10 Years... "No Toxic Clauses"

Judging Quality Jobs and High Value-Added Creation
"Pass Legislation Quickly Even Excluding Health and Medical Fields"

Hong Nam-ki, Acting Prime Minister, attended the full meeting of the Planning and Finance Committee held at the National Assembly on the 22nd and made remarks related to the bill. Photo by Yoon Dong-joo doso7@

[Sejong=Asia Economy Reporter Moon Chaeseok] Acting Prime Minister Hong Nam-ki requested the National Assembly to pass the Framework Act on the Service Industry Development, even excluding the "four healthcare laws"?the Medical Service Act, the Pharmaceutical Affairs Act, the National Health Insurance Act, and the National Health Promotion Act. He judged that if the Framework Act passes, it could create quality jobs and added value.

On the 22nd, Acting Prime Minister Hong posted on his social media (SNS) explaining the added value and employment share of the service industry, urging the National Assembly for prompt handling. The Framework Act, first proposed in 2011 to provide systematic support for the service industry, has failed to pass the National Assembly for ten years due to opposition from those against deregulation.

According to Acting Prime Minister Hong, as of 2018, the share of added value in South Korea's service industry was 62.4%, which is 17.4% lower than the United States' 79.8%. The employment share in the service industry was also 70.8%, 9.1 percentage points lower than the U.S.'s 79.9%. Citing a 2019 study by the Korea Development Institute (KDI), he emphasized that raising the productivity of the service industry to the level of major countries could increase the growth rate by 1 percentage point and create about 150,000 jobs.

He wrote that the Framework Act would serve as a "solid stepping stone" to revive face-to-face service industries such as retail and food and lodging, which were hit hard by COVID-19, and to manage risks such as the Fourth Industrial Revolution, non-face-to-face and digital transformation, and demographic changes. Acting Prime Minister Hong said, "In this urgent situation, we can no longer delay the legislation of the Framework Act, which will serve as a solid stepping stone for the development of the service industry."

The government first submitted the Framework Act to the National Assembly on December 30, 2011, during the 18th National Assembly. The bill was discarded when the 18th National Assembly ended in May 2012. In the 19th National Assembly that followed, the government proposal was resubmitted under the leadership of then Hong Nam-ki, Director of Policy Coordination at the Ministry of Strategy and Finance. However, due to concerns over undermining public healthcare, the bill was repeatedly reintroduced, stalled, and discarded over ten years and has yet to pass the standing committees of the 21st National Assembly.

Acting Prime Minister Hong believes that the enactment of the Framework Act will not lead to the undermining of public healthcare. He stated, "Legislation has not been realized for over ten years due to concerns about undermining public healthcare, but in fact, there are no provisions or problematic clauses in the original Framework Act bill that would harm public healthcare." He added, "Nevertheless, to expedite legislation, the current pending bill excludes the four healthcare-related laws?the Medical Service Act, the Pharmaceutical Affairs Act, the National Health Insurance Act, and the National Health Promotion Act?from the scope of the Framework Act."

Acting Prime Minister Hong said, "Now is the time to end fruitless debates and demonstrate the wisdom of 'Ujikjigye' by changing our approach to problem-solving." He explained that while he hopes the Framework Act will include the healthcare sector, given the urgency, he expects prompt legislation even if the four healthcare-related laws are excluded, as proposed by Assemblyman Lee. The term 'Ujikjigye' comes from Sun Tzu's Art of War, meaning one should not only take the direct path but also know when to take a detour?an idea of changing perspective.

He earnestly appealed, "I sincerely urge both ruling and opposition parties to unite and ensure the passage of the Framework Act this time." He added, "If the Framework Act is enacted, the government will make every effort to use it as an opportunity to elevate the competitiveness of our service industry to the next level and to make the service industry a source of added value and job creation at the level of advanced countries."

This content was produced with the assistance of AI translation services.