The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Fri, August 12, 2022 | 05:53
Business
Seoul to Open Services Sector Wider in 2010
Posted : 2009-12-13 17:52
Updated : 2009-12-13 17:52
Print Preview
Font Size Up
Font Size Down
By Lee Hyo-sik
Staff Reporter

The Lee Myung-bak administration plans to open its currently "underdeveloped" medical, educational and other high-value services sectors wider to foreigners in 2010.

The move comes as Asia's fourth-largest economy faces a substantial fall in economic growth potential in coming years, with domestic demand for the manufacturing industry close to saturation while the nation remains far behind advanced economies in the service sector.

McKinsey & Company recently commented on Korea's underdeveloped services industry, saying it accounts for 67 percent of the nation's total added value, substantially lower than 84 percent in the United States and 75 percent in Germany.

It projected that with its current manufacturing-centered and outward-oriented economic structure, Korea will expand by an annual average of 3.1 percent from 2010 through 2020, with its per-capita gross domestic product (GDP) reaching only $27,800.

But if the country increases services sector productivity and promotes innovation, the economy could grow by 5.6 percent annually, pushing up the per-capita GDP to $37,000 in 2020.

Against this backdrop, the Ministry of Strategy and Finance plans to report a set of measures aimed at generating jobs and upgrading Korea's economic structure to President Lee Wednesday.

"Our top priority next year is to generate high-quality jobs and foster new growth engines. We will make every effort to advance the local services industry, and provide tax breaks and other support in a bid to promote research and development activities.

He said the government had focused on bolstering domestic demand, improving the current account balance and expanding an economic safety net this year in the aftermath of the worldwide economic downturn.

"But in 2010, we will do everything we can to prop up the sluggish job market through the revitalization of the economy, enhance social and economic structures, and upgrade Korea's standing on the global stage."

Among others, the government places top priority on generating jobs next year and to do so, it plans to advance the services industry here.

Over the years, the government has introduced a series of measures, including deregulations and tax cuts, aimed at enhancing the competitiveness of the services industry. The moves have yet to show positive results.

In recent months, President Lee has promoted the lifting of entry barriers to medical, legal, educational and other highly-protected service areas in an effort to foster competition and force service providers to offer high-quality services at lower costs.

McKinsey suggested that Korea should come up with a comprehensive services productivity program to innovate in five areas: government, finance, wholesale and retail, transportation and communication, saying they created a larger number of jobs than the manufacturing industry in 34 countries.

It also said the government should remove unnecessary red tape in the sector to foster innovation and creativity, which are the keys to increasing productivity.

leehs@koreatimes.co.kr
 
LG
  • Hydrogen bus trial service begins in Busan, Ulsan, South Gyeongsang Province megacity
  • Vacationers warned not to buy marijuana cookies in Thailand
  • Seoul City to phase out semi-basements as dwellings
  • Korean firms asked to consult with indigenous peoples prior to searching for renewable energy resources
  • Convenience stores offer unconventional products for Chuseok
  • Defense minister refutes China's claim on THAAD
  • Korean builders desperate for oil money
  • Internet banks perform poorly in board gender diversity
  • Yoon holds first meeting with USFK chief since inauguration
  • Solo Leveling artist's death sheds light on webtoon creators' working condition
  • Interactive News
  • With tough love,
  • 'Santa dogs' help rebuild burnt forests in Andong
  • 'Santa dogs' help rebuild burnt forests in Andong
  • A tale of natural wine
    • Death of young webtoon artist sparks controversy over harsh working conditions Death of young webtoon artist sparks controversy over harsh working conditions
    • 'Good Doctor' director to debut Netflix's high-strung suspense series, 'A Model Family' 'Good Doctor' director to debut Netflix's high-strung suspense series, 'A Model Family'
    • Musical 'Kinky Boots' tells people to love themselves as they are Musical 'Kinky Boots' tells people to love themselves as they are
    • Crime thriller 'Limit' is about mother's quest to save abducted son Crime thriller 'Limit' is about mother's quest to save abducted son
    • From P1Harmony to Zico, K-pop hotshots to perform in Abu Dhabi next month From P1Harmony to Zico, K-pop hotshots to perform in Abu Dhabi next month
    DARKROOM
    • Ice is melting, land is burning

      Ice is melting, land is burning

    • Tottenham 6-3 Team K League

      Tottenham 6-3 Team K League

    • Afghanistan earthquake killed more than 1,000

      Afghanistan earthquake killed more than 1,000

    • Divided America reacts to overturn of Roe vs. Wade

      Divided America reacts to overturn of Roe vs. Wade

    • Namaste: Yogis to celebrate International Yoga Day

      Namaste: Yogis to celebrate International Yoga Day

    The Korea Times
    CEO & Publisher : Oh Young-jin
    Digital News Email : webmaster@koreatimes.co.kr
    Tel : 02-724-2114
    Online newspaper registration No : 서울,아52844
    Date of registration : 2020.02.05
    Masthead : The Korea Times
    Copyright © koreatimes.co.kr. All rights reserved.
    • About Us
    • Introduction
    • History
    • Location
    • Media Kit
    • Contact Us
    • Products & Service
    • Subscribe
    • E-paper
    • Mobile Service
    • RSS Service
    • Content Sales
    • Policy
    • Privacy Statement
    • Terms of Service
    • 고충처리인
    • Youth Protection Policy
    • Code of Ethics
    • Copyright Policy
    • Family Site
    • Hankook Ilbo
    • Dongwha Group