Koo Yoon-cheol: "Service Industry to Become New Growth Engine Through Regulatory Reform"

First Meeting of the Task Force for Strengthening Service Industry Competitiveness

The government and economic organizations are set to actively foster the service industry as a new growth engine for the Korean economy. They plan to provide focused support to revitalize domestic tourism, promote the spread of new services through regulatory innovation, and expand exports of K-Services.

On October 2, Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol stated at the first meeting of the “Task Force for Strengthening Competitiveness in the Service Industry” held at the Korea Economic Association in Seoul, “We will nurture the service industry as a new growth engine to drive qualitative growth of our economy and to boost both domestic demand and exports.”

Deputy Prime Minister Koo emphasized, “The service industry is the largest sector in our economy, accounting for 60% of added value and 70% of employment, and it has a tremendous economic ripple effect. Nevertheless, compared to advanced countries, our productivity remains at just half their level, making it urgent to strengthen our competitiveness.”

The government will operate the task force with a focus on four main directions: ▲ innovation in high value-added service industries ▲ support for the growth of service companies ▲ expansion of K-Service exports ▲ regulatory reform to facilitate the emergence of new services. First, plans will be implemented to enhance convenience for both domestic and foreign tourists from entry into the country through accommodation, transportation, payment, food, and attractions, as well as to expand local tourism content.

On the 2nd, Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul received a policy proposal from Ryu Jin, chairman of the Korea Economic Association, before the start of the first meeting of the Task Force for Strengthening Competitiveness in the Service Industry held at the Confidence Center of the Korea Economic Association in Yeongdeungpo-gu, Seoul.

Additionally, the government will establish measures to improve the quality of accommodation facilities by enhancing the accommodation industry promotion system and will work to institutionalize home-sharing for domestic residents. There will also be a reorganization of related systems, such as revising the tourism industry classification under the Tourism Promotion Act to reflect the changing environment.

Furthermore, the government plans to collaborate with local governments to expand K-Pop performance venues and strengthen the connectivity of major transportation networks like KTX both between and within regions. Tourism data will be consolidated and analyzed in one place, and the mobile authentication system for foreigners will be improved to make payments easier for international visitors.

To promote regional tourism, a “Regional Tourism Leading Project” will be developed within the year to foster global-level tourism zones outside of Seoul. Deputy Prime Minister Koo explained, “Next year, we will select about two leading zones and provide comprehensive support packages, including financial investment, tourism program development, and regulatory improvements.”

All tourism-related projects across ministries and agencies will be integrated and linked, and efforts will be made to attract private investment. This month, on the occasion of the Asia-Pacific Economic Cooperation (APEC) summit, the government will strengthen convenience measures so that foreign visitors to Korea are encouraged to return.

During the event, the government will organize the “Tourism Service Monitoring Team” to inspect major tourist sites and, together with North Gyeongsang Province and Gyeongju City, improve visitor convenience services such as transportation, accommodation, shopping, and food and beverage. Initiatives such as transportation discounts for foreigners will be introduced to enhance regional tourism experiences, and after the event, Gyeongju will be promoted as a historical, cultural, and international themed destination for school trips, with continued efforts to attract international events.

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