This study seeks to conduct a comparison study of the definitional concept and structural changes of the service industry by referring to the South Korean service sector’s level of growth and present conditions in relation to its foreign counterparts including Japan. Ultimately, the study seeks to examine feasible utilization plans of the Uruguay Round and development plans for the service sector.
The South Korean economy’s strong development lasted throughout the 1980s as the country achieved rapid growth throughout the sixties and seventies. In particular, the share of primary industries in the market fell between 1985 and 1988 when export trade was at its boom, while secondary industries made a drastic increase. The secondary industries saw their decline since 1988 as tertiary industries started increasing their share in the market.
While much discussion has been made on primary and secondary industries of the South Korean economy, there are still inadequate discussions on dealing with the service sector’s expansion. At present, the service sector is receiving pressure toward liberalization in relation to the Uruguay Round. This should be addressed by building a national interest on South Korea’s strict regulations and the country’s service sector receiving protection.
At present, there is a lack of a more systematic and comprehensive development plan between sectors as the service sector, taking more than half of the domestic GNP, is considered to be either unproductive or less important.
Although agricultural and manufacturing imports can be utilized when needed, the service sector must have established its (own) substructure for it to be able to perform economic functions. An effectively built substructure is indeed indispensable for the growth of other sectors in the economy. In addition, the development of business services and of producer services is essential for economic development.
Up until now, South Korea has maintained a surplus in international trade for services. However, export trade forecasts on the traditionally competitive areas including construction services and marine transportation services remain uncertain while competition is expected to take place with foreign markets after the opening of the service sector. Should protection and regulation persist according to the traditional policies of intervention, the service sector will be only grow to becoming weaker.
The ongoing multilateral negotiations in the Uruguay Round are expected to play a positive impact on the development of the Korean service sector, in the sense that trade liberalization will naturally bring in competition. In addition, carrying out a separate development roadmap for the South Korean service industry also seems necessary. Regulations with regards to the business of service will have to be modified in order for domestic demands on deregulation to integrate with active participation in the negotiations for liberalization.
서비스교역 자유화와 한국 서비스부문 발전방안(A study of service trade liberalization and development plans for the service sector)
|Series Title; No||정책연구시리즈|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade|
|Holding||KDI; KDI School|