Korea’s economic structure has changed in a trend toward that of an advanced economy. Although the manufacturing sector has been dominating and a source of economic growth for a long period, there has been a recent shift toward the service industry. The sector’s share of both production output and employment is still rising. However, Korea’s service industry, despite its great significance in terms of employment and value-added, is not considered fully advanced. While its role is increasing, its economic share and rate of productivity growth is relatively slow compared with that of other countries. Thus, advancement of the service industry is essential in order to achieve a more prosperous economy. This paper presents the characteristics of Korea’s service industry and suggests strategies for its development.
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