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.
- Korea’s Near Export Only Growth: Open the Service Sector
- Exclusion of Japan from Export/Import White List
- UN Report: Korea’s Latest Successes and Shortcomings
- Sean Hayes attended the Korea Business Forum
- Korea Needs a Rugby Team: Sports as a Driving Force for Economic Growth in Advanced Economies like Korea by Daniel Gardner
- South Korea Ranks Low in Global Reputation Index: Why?
- Korea Government Filed a Complaint with WTO Over Japan’s Export Restrictions on Korea
- Agricultural Business Opportunities in Korea: USD 2 Billion Fund to be Established
- Korea’s Occupational Safety and Health Act Amendments for 2018 (OSHA Korea Updates)
- Most Japanese are Shocked when they Realize the Latent Antipathy the Rest of Asia Including Korea still holds toward them.