[Edaily Reporter Oh Hee-na ] Arguments have been raised that it is urgent to establish a legal and institutional foundation to foster the service industry as a future growth sector. Amid rapid changes in the industrial structure driven by artificial intelligence (AI) and digital transformation (DX), advocates argue that regulatory innovation and a policy support system tailored to the industry’s characteristics must be put in place.
Recently, the Korea Federation of Service Industries held a seminar titled “Strategies and Legislative Tasks for the Advancement of the Service Industry” at the National Assembly in Yeouido in collaboration with the office of Rep. Yoon Jun-byung of the Democratic Party of Korea, seeking ways to expedite the enactment of the “Framework Act on the Development of the Service Industry,” which has been stalled for 15 years.

First proposed in the 18th National Assembly in 2011, the Service Industry Development Act has been repeatedly introduced and withdrawn due to concerns over the privatization of healthcare and opposition from civic groups. Shin Hyun-dae, Chairman of the Korea Federation of Service Industries, emphasized, “The service industry is a major pillar of employment and value-added, yet it remains trapped within manufacturing-centric regulations and frameworks,” adding, “To overcome low growth and create quality jobs for young people, we need the prompt enactment of this law and bold regulatory innovation.”
At the seminar, experts diagnosed that since the service industry—which had previously been limited to supporting manufacturing—is now leading growth, employment, and innovation, a shift in policy is necessary. Park Jeong-su, Director of the Institute for Industrial Policy and Strategy, pointed out, “Without a basic law, inter-ministerial coordination and systematic support are impossible,” adding, “As demand for services is increasing in fields such as culture, tourism, finance, and caregiving, and as digital technology and AI are beginning to be utilized in the service sector, it is urgent to systematize policies through the enactment of this law.”
Oh Seong-hwan, President of the Korea PCO Association, appealed, “Although seven out of every ten people in the domestic labor force work in the service sector, they are not receiving proper protection and support due to the lack of an adequate legal foundation,” adding, “Legislation must be enacted as soon as possible to establish governance and provide infrastructure support for small and medium-sized service enterprises.”
The government has stated that it will accelerate the legislative process with the goal of passing the bill in a plenary session of the National Assembly by the end of this year. It is reported that the health and medical sectors, which had previously opposed the enactment of the Service Industry Development Act due to concerns about the infringement of public interests, have now shifted to a position of support. Choi Dong-il, Director of the Service Economy Division at the Ministry of Finance and Economy, said, “We are preparing supplementary measures, such as guaranteeing participation in the Service Industry Development Committee, to address the concerns of the health and medical industries.”