Last Year Service Industry Sales Jumped 10.5%... Social Distancing Easing Worked

[Asia Economy Sejong=Reporter Dongwoo Lee] Last year, sales in the service industry increased by 10.5% compared to the previous year. The arts, sports, and leisure sectors saw significant growth. Although the total number of service industry establishments decreased by 9,000 last year, the number of employees increased by 220,000.

According to the "2021 Service Industry Survey Results (Provisional)" released by Statistics Korea on the 23rd, last year's service industry sales amounted to 2,814 trillion won, an increase of 10.5% (267 trillion won) compared to the previous year. This growth rate is the highest in six years since 2015 (23.0%).

By sector, sales in the arts, sports, and leisure industries increased by 24.0% compared to the previous year, marking the highest growth rate since 2010 (25.9%). Statistics Korea analyzed that the relaxation of social distancing measures led to increased demand for attending performances and the use of gyms and sports facilities.

Following this, the information and communication industry grew by 19.3% due to increased demand for online and mobile games and the activation of video content, while the water supply, sewage, and waste management industry increased by 17.1% due to increased waste from the rise in courier and food delivery usage.

Wholesale and retail trade, which accounts for more than half of total service industry sales (1,592 trillion won), grew by 8.9% influenced by the growth of online shopping. The number of service industry establishments was 4,066,000, a decrease of 0.2% (9,000 establishments) compared to a year earlier. This is the first time the number of service industry establishments has decreased since 2005 (-6.4%). The number of service industry establishments that introduced unmanned payment devices increased by 2.7 percentage points to 80,000 compared to the previous year. By sector, the number of establishments decreased in business facilities and support services (-5.8%), wholesale and retail trade (-2.0%), and repair and personal services (-0.7%).

The total number of service industry employees was 13,853,000, an increase of 1.6% (222,000 people) during the same period. Increases were seen in information and communication (8.8%) and water supply, sewage, and waste management (4.6%), while decreases occurred in repair and personal services (-1.9%) and wholesale and retail trade (-0.5%).

The number of accommodation businesses transacting through digital platforms was 28,000 (44.3%), an increase of 15.2 percentage points compared to a year earlier. This means that 4 out of 10 accommodation businesses used accommodation apps or similar platforms.

In the food and beverage industry, 20.7% conducted transactions through digital platforms. The number of food and beverage businesses that introduced delivery sales, including courier services, was 277,000, accounting for 34.6%. This is an increase of 8.0 percentage points compared to a year earlier.

In retail, 391,000 establishments (39.7%) were found to conduct delivery sales. The number of businesses that introduced unmanned payment devices was 48,000 (5.5%) in accommodation and food service industries and 32,000 (3.3%) in wholesale and retail trade.

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