Most of all, Korea needs a strategy that will allow it to use the service industry opening to its benefit. The Economist wrote in a recent special report on Korea that the country’s manufacturing industry is top-notch but the service sector is still Third World. It accounts for 60 percent of Korea’s GDP (two years ago), but productivity is only 40 percent of the manufacturing industry’s. At this rate, the country will not be able to sustain growth and create jobs. Japan boasts the world’s best manufacturing technologies, but failed to innovate its service sector. As a result, it has fallen from being the world’s No. 2 economy to third place behind China.Korea needs to tap its experience in bolstering the manufacturing industry and apply it to boosting the legal, financial, retail, culture and arts, tourism and education industries and accomplish what Japan was unable to achieve. The country needs a vision to use the FTA as a chance to embrace the methods of advanced countries and boost the productivity and competitiveness of the service sector so that it can generate top-notch products the world envies. Such a big push could transform the very landscape of Korea’s economy.
The editorial may be found at: Korea’s Service Sector Needs a Big Push
_______
Sean Hayes may be contacted at: [email protected]
Sean Hayes is co-chair of the Korea Practice Team at IPG Legal. He is the only non-Korean to have worked as an attorney for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty.
Similar Posts:
- Samsung’s Win Against Elliott is Korea’s Loss According to Bloomberg
- Is a Bankruptcy in the U.S. “Effective” on Assets in Korea?: Korean Bankruptcy Law Basics
- Korea Contracts Don’t Forget the Counter-party: Due Diligence before Executing an Agreement in Korea
- Korea prepares itself for Big Data-driven 4th Industrial Revolution: Korean Data Protection Laws Revised
- So you want to do business in Korea? Listen to my Mother. Korean Joint Venture/Partnership Basics
- Restructuring of Korean SMEs a Potential Lucrative Business in Korea
- Amendment to the Korean Foreign Investment Promotion Act 2019 – Investment Incentives in Korea
- Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 14, 2014
- “Samsung’s First Family Struggles to Keep Grip on Company” Report by Bloomberg
- Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 21, 2014
You must log in to post a comment.