Korean service sector's value-added lowest in OECD: report

SEOUL, May 5 (Yonhap) -- The contribution of South Korea's service sector to the
country's value-added recorded the lowest level among member countries of the
Organization for Economic Cooperation and Development (OECD), a report showed
Tuesday.
The weight of the country's service industry out of total economic value-added
accounted for a mere 57 percent, lower than an average 72 percent registered by
other OECD member countries, the Federation of Korean Industries said in its
report.
"It is important to nurture the service industry in a bid to reduce the country's
high level of dependence on exports," the country's top business lobby group
said. "The service sector creates more jobs than the manufacturing industry."
Exports, which account for about 60 percent of the Korean economy, have driven
the country's economic growth, but they have been hit hard by the global economic
recession.
Asia's fourth-largest economy is forecast to shrink 2.4 percent this year, the
worst performance in 11 years, stung by falling exports and sluggish domestic
demand.
The report said that the country should enhance productivity by increasing
investment in research and development and easing unnecessary regulations in
order to boost the service industry.
sooyeon@yna.co.kr
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