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: SeanHayes@ipglegal.com.
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.
- Exclusion of Japan from Export/Import White List
- UN Report: Korea’s Latest Successes and Shortcomings
- Sean Hayes attended the Korea Business Forum
- What are the Largest Exports from Korea?
- Korea Needs a Rugby Team: Sports as a Driving Force for Economic Growth in Advanced Economies like Korea by Daniel Gardner
- Opportunities in the K-Beauty Export/Import Business
- What are the Main Imports into Korea? (Exporting to Korea)
- Deregulation of Korean Cloud Computing and Network Separation in the Korean Financial Sector in South Korea
- Legal Document Service in Korea via Hague Service Convention
- Korea Government Filed a Complaint with WTO Over Japan’s Export Restrictions on Korea
You must log in to post a comment.