[Sejong = E-Daily Reporter Park Sun-Yeop ] The government plans to foster the service industry—including tourism, exhibitions, and K-Beauty—as a new engine of economic growth alongside the semiconductor sector. The plan aims to support youth employment and revitalize regional economies, thereby balancing economic growth with the well-being of ordinary citizens. The government is also taking steps to mitigate income inequality by focusing on three core social policies: housing, employment, and financial support for low-income households.

Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il presided over a joint meeting of the Emergency Economic Headquarters, the Economic Ministers’ Meeting, and the Service Industry Development Task Force at the Seoul Government Complex on the 14th. “We need a second and third runner to drive growth alongside the semiconductor industry,” he said, singling out the service industry as one such sector. He went on to emphasize, “Through the promotion of the service industry, the government will ‘kill two birds with one stone’ by achieving both growth and improved people’s livelihoods.”

◇Request to Enact the Service Industry Act by Year-End… Measures to Address Polarization Also in Full Swing

According to the 2024 sector-by-sector statistics presented by the government, the service sector’s share of total value added and employment stood at 61.9% and 71.6%, respectively, surpassing that of the manufacturing sector (28.7% and 15.6%). To support the service industry, which has a significant job-creation effect, Deputy Prime Minister Lee requested the National Assembly’s active interest and cooperation to ensure that the currently proposed Framework Act on Service Industry Development is enacted by the end of the year.

Regarding the economic situation, he noted that the International Monetary Fund (IMF) had raised its growth forecast for South Korea this year by 0.7 percentage points the previous day, from 2.6% to 3.3%. Noting that this upward revision exceeded the increases for the global economy (0.1 percentage points) and advanced economies (0.4 percentage points), he explained, “This reflects the international assessment that our economy’s robust growth, including strong semiconductor exports, is outweighing the negative impact of the war in the Middle East.”

Measures to alleviate income inequality will also be implemented to ensure that the fruits of growth are shared equitably among the public. Deputy Prime Minister Lee stated, “We will also ramp up extraordinary efforts to reduce income inequality,” adding, “We have already begun formulating three key social policies: housing, employment, and financial support for low-income households.” The plan is for all government ministries and state-run research institutes to collaborate in developing measures that the public can tangibly feel.

◇Boosting Tourism, Exhibitions, and K-Beauty… National Discount Festival Starts on the 29th

At the meeting, participants discussed support measures for tourism, exhibitions, and K-Beauty aimed at fostering the service industry. To spread inbound tourism—currently concentrated in the Seoul metropolitan area—to regional areas, the government will develop five ultra-wide-area tourism zones centered on Gimhae, Daegu, Cheongju, Yangyang, and Muan airports. By investing approximately 410 billion won in national and local funds next year, reviewing the application of regulatory exemptions, and supporting artificial intelligence (AI) pilot projects, the government aims to attract 5 million visitors to these tourism zones by 2029.

In the exhibition industry, the government aims to foster at least five national and regional flagship exhibitions by 2030. This year will mark the inaugural “K Connect AI” event, which integrates AI with high-tech industry exhibitions, and the government will also expand flagship exhibitions for K-Food and K-Beauty. The government plans to support regional flagship exhibitions linked to the “5 Poles, 3 Special Zones” growth engine and designate exhibition industry development zones to foster regional ecosystems.

For K-Beauty services, the government will reorganize the skin data bank into a format suitable for AI training and rationalize regulations on customized cosmetics so that a single formulation manager can oversee multiple stores using AI and automated equipment. It will launch a pilot project to improve the screening requirements and procedures for medical tourism visas and expand support for overseas market entry to include beauty services.

The “Korea Grand Festival,” a nationwide discount festival aimed at stimulating consumption, will run for 18 days from the 29th of this month through the 15th of next month. During the event, the discount rate for digital Onnuri gift certificates will be raised from 7% to 10%, and agricultural, livestock, and marine products will be discounted by up to 50%. A “Win-Win Consumer Lottery” offering a total prize pool of 1.7 billion won will also be held. Details will be announced later this month.

Measures to address rising prices amid escalating tensions in the Middle East will also continue. Deputy Prime Minister Lee emphasized that tensions in the Middle East, including in the Strait of Hormuz and the Red Sea, have recently risen again, stating, “This is a situation where we cannot let our guard down.” The 11th round of maximum oil prices, set to take effect at midnight on the 17th, will be announced at 6:00 p.m. on the 16th following a comprehensive review of international oil prices and the burden on the public.