KIET Korea Institute for Industrial Economics and Trade

The transition to the service economy, which shows the expanding influence of the service industry on the economy in terms of employment and of value-added, highlights the importance of the service industry in the national economy. In addition, increased income levels (due to economic growth), the development of information and communication technology (ICT) and the changes in the population structure - such as lower birth rates and an increase in the number of elderly people - have created and expanded demand for new and existing services. The service industry is expected to account for a larger portion of the national economy in the coming years.