Lee Hyungil: "The Next Semiconductor Is the Service Industry"... Seeks Support for Enacting Service Industry Development Act This Year

Lee Hyungil, Deputy Prime Minister and Minister of Economy and Finance, named the service industry, which has a significant job-creation effect, as one of the “next semiconductors” and said the government would focus on fostering it.

Lee Hyeongil, Deputy Prime Minister and Minister of Finance and Economy, speaks at a meeting of the Emergency Economic Headquarters and a meeting of economy-related ministers, held jointly with the Service Industry Development Task Force (TF), at the Seoul Government Complex in Jongno-gu, Seoul, on the 14th. Yonhap News Agency

On the 14th, Lee held the Emergency Economic Headquarters meeting and the meeting of economy-related ministers, which also served as the Service Industry Development Task Force meeting, at the Seoul Government Complex. “We need second and third runners to grow alongside semiconductors and drive growth. The service industry is one of them,” he said. “By fostering the service industry, we will achieve both growth and improvements in people’s livelihoods.”

“The service industry has a very significant job-creation effect, and high-value-added sectors such as K-content have recently taken off and are becoming new engines of growth for our country,” Lee explained. “The service industry is also a sector that supports people’s livelihoods: it is closely connected to their everyday lives, employs many young people, and contributes to revitalizing local economies.”

He stressed, “I ask the National Assembly to take an active interest in and support the enactment of the proposed Framework Act on the Development of the Service Industry within this year.”

“Yesterday, the International Monetary Fund (IMF) sharply raised its forecast for Korea’s economic growth this year by 0.7 percentage points, from 2.6% to 3.3%,” Lee said. “We will also step up extraordinary efforts to ease polarization so that all citizens can share in the fruits of growth and we can achieve sustainable growth.”

Lee added that the government is preparing three key social policies covering housing, jobs and finance for low-income households, and will work with all ministries and state-run research institutes to develop measures to address polarization that people can feel in their daily lives.

At the meeting, the government reviewed its response to the Middle East war and discussed interagency cooperation measures for five tourism zones centered on regional airports; the Exhibition Industry Development Roadmap 2030; support measures for AI-powered and convergent K-beauty services; detailed plans for the second Korea Grand Festival; and the proposed designation of the 11th petroleum price cap, among other items.

The government will work to revitalize five tourism zones by encouraging international visitors, who are currently concentrated in the Seoul metropolitan area, to enter Korea directly through regional airports. Last month, the government designated five super-regional tourism zones centered on Gimhae, Daegu, Cheongju, Yangyang and Muan airports.

Lee set a target of attracting 5 million visitors through the five tourism zones by 2029. To achieve this, the government plans to invest approximately KRW 410 billion in central and local government funding next year and consider regulatory exemptions linked to the proposed Mega Special Zone Act, which is expected to be introduced soon.

The government will also pursue AI pilot projects to use artificial intelligence (AI) to address challenges faced by visitors to Korea, including transportation and language barriers.

Lee announced that during the Korea Grand Festival, a nationwide discount event running from October 29 to November 15, the discount rate on Digital Onnuri gift certificates will be raised from 7% to 10%. The government will also run the Win-Win Consumption Lottery, with total prizes worth KRW 1.7 billion, and offer a range of consumption incentives and discounts, including discounts of up to 50% on agricultural, livestock and fishery products.

Details will be announced this month after discussions among the relevant ministries.

Under the petroleum price cap currently in effect to cushion the impact of the Middle East war, the 11th price cap, which will take effect at midnight on October 17, will be announced at 6 p.m. on October 16.

This content was produced with the assistance of AI translation services.