South Korea unveils measures to improve domestic service sector

South Korea unveils measures to improve domestic service sector

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South Korea is taking a new set of measures – which include the expansion of tax benefits – in order to stimulate business activity in the service sector. The country believes that this sector will help to create more jobs and lead to overall economic growth. These measures for development of the service sector were the first of their kind and were mapped out by the Park Geun-hye government since it took office in February 2013.

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The measures were jointly announced by the Ministry of Strategy and Finance, The Ministry of Culture, Sports and Tourism, The Ministry of Science, ICT and Future Planning. The government’s latest measures include the expansion of tax benefits to business in leisure and health sectors, among other things on the agenda. This will also include tax deductions for corporate investment linked to job creation.

Moreover, in order to provide expanded benefits, the government will seek to adjust small-business classification standards in the service sector in line with what is being applied to manufacturing companies. Efforts will be made by the government to stimulate the country?s contents sector, which is regarded as a major block of high potential service industry.

With these recent efforts, the government expects that the contents sector could grow to a 1.82 trillion won market by 2017..