By Lee Hyo-sik
Staff Reporter
South Korea's labor productivity in accounting, consulting, design and other business-related service sectors lags far behind the United States and other advanced nations. To join the ranks of the developed economies, accordingly, the country needs to strengthen its service industry.
The National Statistical Office (NSO) said Tuesday, that using Korea's labor productivity in these sectors as a baseline set at 100 in 1985, the country's output in the business-supporting service sectors stood at 287.3 in 2005, substantially lower than the United States' 1,012.7.
Japan's service industry labor efficiency came to 764.2, while the average of Britain, France, and eight other Western European nations were 713.3.
By sector, Korea's labor productivity in office equipment leasing, computer network solution, and other corporate support-related businesses was 367.7, compared with 1,134.5 in the United States, 852.3 in European countries and 681.8 in Japan.
In wholesale and distribution service sectors, the country's labor efficiency was 378.9, far lower than 1,014.2 in the United States and 1,083.5 in Japan. The story is not much different in the financial services, entertainment and culture-related service sectors.
``Korea's service industry is far less competitive than developed countries because of the government's overemphasis on the manufacturing industry and heavy regulation. It is urgent for the country to sharpen the service industry competitiveness to spur economic growth and create jobs,'' an NSO official said.
The statistical office also said the labor productivity in the country's manufacturing sector increased to 702.7 in 2005, but it was substantially lower than 1,745.2 in the United States and 1,274.5 in Japan.
The previous Roh Moo-hyun administration introduced a number of measures designed to enhance the competitiveness of the services industry, promoting it as the country's next growth engine. But the gap in the service sector competitiveness between Korea and advanced economies has widened.
Against this backdrop, President Lee Myung-bak said recently that the government will soon find effective ways of creating a better business environment for the service industry and reducing Korea's chronic service account deficit.
Among others, it is considering making it easier for the construction of golf courses and theme parks here, as well as improving leisure and other services sectors.