Promoting Digitalization of Service Industry... Large-Scale Expansion of Data Infrastructure Underway

Emergency Economic Ministers' Meeting at Seoul Government Complex on the 21st
Expansion of AI Hub with up to 1,100 Types of Industry-Specific Data
AI Training Data Exempt from Copyright Infringement Liability

The government will significantly expand digital infrastructure to enhance the competitiveness of the service industry. To facilitate companies' development of artificial intelligence (AI) services, the scale of data available on the government's data platform, AI Hub, will be greatly increased, and a system to address copyright issues that may arise during data utilization will be organized. Digital technologies will be integrated into services in five major sectors (logistics/distribution, finance, safety, administration, education) to improve the overall competitiveness of everyday services.

The Ministry of Economy and Finance, along with related ministries, announced the "Digitalization Strategy for the Service Industry" at an emergency economic ministers' meeting held at the Government Seoul Office on the 21st. This measure was prepared with the aim of activating digital services that converge all industries, including manufacturing and services, to enhance the convenience of citizens' daily lives.

First, the data within the government AI data platform, "AI Hub," will be significantly expanded. This is to build infrastructure that allows startups to more easily engage in AI development. Currently, AI Hub has 150 types of industry-specific data, and the plan is to expand this to more than 1,100 types of industry data by 2027. More than 250 types of specialized language data in fields such as medical and legal will be discovered. Support programs necessary for data training will also be expanded so that startups, including venture companies, can use data and develop services all at once on AI Hub.

The government will also revise legal systems to prepare for copyright issues that may arise during AI service development. When companies use data for AI training, the "Copyright Act" will be amended to exempt them from copyright infringement. For example, the law will explicitly state that "crawling activities" (automatically collecting, classifying, and storing internet websites, hyperlinks, data, etc.) for AI training constitute lawful access to copyrighted works. To eliminate uncertainties in AI service development, the intellectual property system for outputs generated by generative AI such as ChatGPT will also be revised.

The reason the government is undertaking such a large-scale expansion of digital infrastructure is that while the service sectorization of the Korean economy is progressing rapidly, productivity remains low. The employment share of the service industry increased from 46.7% in 1990 to 70.7% in 2022 due to rising income levels and technological development. However, labor productivity per employee in the service sector was $64,200 in 2020, which is 72% of the OECD average ($88,300). The government notes that low big data construction and utilization, as well as outdated regulations unsuitable for the digital era, are hindering the activation of digital services in the service industry.

Promoting Digitalization of Services in Five Leading Sectors: Logistics/Distribution, Finance, Safety, Administration, Education

In the logistics sector, a "super-precise bus information service" will be sequentially introduced in areas with long bus dispatch intervals or major tourist spots. Real-time bus location and movement information will be visualized and provided through map apps like KakaoMap. Institutional foundations for the commercialization of drone and robot delivery will also be established. Legal grounds will be secured by amending the "Living Logistics Service Industry Development Act" to allow drones and robots to be used as living logistics transportation means. In the distribution sector, collaboration between platforms and local governments (such as Gunsan City) will be promoted so that locally barley-produced craft beer can be ordered online through major liquor smart order apps like "Coupang" (컬리).

In the finance sector, partnerships between businesses will be expanded so that Southeast Asian tourists can easily pay using their home country's mobile payment systems. Especially, Chinese and Southeast Asian tourists will be able to receive immediate VAT refunds without passport scanning when using Zero Pay payment networks for simple payments. Mobile payment (simple payment) terminals will be promoted in small business stores to enhance consumer convenience. Additionally, the regulatory sandbox submission for robo-advisor services that manage retirement pension funds through algorithms and big data analysis according to investor preferences will be pursued. The regulatory sandbox is a system that exempts or postpones existing regulations for a certain period when new services are launched.

In the safety sector, an industrial complex worker safety management system using digital twins will be established. By implementing virtual and simulated manufacturing environments similar to actual industrial complex manufacturing environments, accident factors will be detected in advance and responded to immediately. From food manufacturing and production stages to the final consumption stage, essential related information will be reflected in QR codes to strengthen full-cycle food traceability management. Citizens will be able to easily access food and pharmaceutical information by displaying "Food QR" and "e-label" on food and pharmaceutical packaging.

In the administration sector, care services for vulnerable groups using digital technology will be expanded. The "Emergency Safety Assurance Service" will be provided to 300,000 vulnerable households, including elderly living alone and disabled persons, who have difficulty responding quickly to emergencies. Fire detectors will be installed in households of elderly living alone and disabled persons, and in case of fire detected by temperature sensors, automatic reporting to 119 will be made, or if no activity is detected, a welfare check will be conducted. An integrated childcare support platform will also be built, matching "childcare helpers" tailored to demand using AI.

In the education sector, AI-based digital textbooks will be introduced to reduce educational disparities. They will be prioritized for subjects such as math, English, information, and Korean (special education) by 2025 and gradually expanded to other subjects by 2028. The digital textbooks will be designed to support personalized learning, such as supplementary learning for slow learners and advanced learning for fast learners.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated on the day, "Through the digitalization strategy for the service industry, we will create new digital services in five leading sectors?logistics/distribution, finance, safety, administration, and education?and strengthen the digital infrastructure of the service industry. We will also proactively review and respond to key issues arising from AI technology use, such as whether AI robots are allowed to perform medical acts and liability in autonomous vehicle accidents."

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