Abstract

This study aims to identify the achievements, limitations, and future challenges of service industry policies implemented between 2000 and 2024, and to explore effective policy directions for fostering the service industry. Since the 2000s, the government, which had primarily focused on manufacturing-centric industrial policies, has recognized the service industry as another key pillar for the continued growth of our economy and has consistently made policy efforts to support its development. As a result, while the transition to a service-based economy and the high value-added nature of the service industry have not progressed rapidly, some improvements have been made. However, our service industry is still largely driven by numerous small and low-value-added businesses, and there is a need to expand the industrial foundation that will drive innovation. In addition, with the changing industrial environment, such as advances in digital technology, it is also necessary to enhance the potential capabilities that will shape the future of the service industry. To effectively promote the transition to a service-based economy, two approaches can be considered. One is to identify the issues raised during the service industry's growth and develop solutions. Strategies could include establishing a policy support system, exploring policies that reflect the characteristics of the service industry, and fostering a shift in perception toward the industry. The other approach involves identifying the potential capabilities that will drive the future of the service industry and supporting the foundation to enhance these capabilities. Examples of related tasks include supporting networking among participants, enhancing capabilities needed for developing new business models, and creating a service provision environment to ensure these models take root in the market.

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