Research Article Open Access

SERVITIZATION OF SOUTH KOREA ECONOMY: CAUSES FOR SLUGGISHNESS AND POLICY ISSUES

Bongho Kim1 and Seok Yoon2
  • 1 Kangnam University, Korea
  • 2 Konkuk University, Korea
American Journal of Applied Sciences
Volume 11 No. 9, 2014, 1692-1702

DOI: https://doi.org/10.3844/ajassp.2014.1692.1702

Published On: 30 September 2014

How to Cite: Kim, B. & Yoon, S. (2014). SERVITIZATION OF SOUTH KOREA ECONOMY: CAUSES FOR SLUGGISHNESS AND POLICY ISSUES. American Journal of Applied Sciences, 11(9), 1692-1702. https://doi.org/10.3844/ajassp.2014.1692.1702

Abstract

Since the 1960 s, the South Korea economy has achieved a rapid economic growth, whereas from the mid 1990's and beyond, servitization showing the growth of the service section over the nominal GDP has rapidly developed. On the other hand, the service industry productivity declined, even lower than the OECD average. These results continue recently through the deterioration of income inequality. Therefore, the objective of this study is to examine the status and characteristics of the servitization of South Korea economy, analyze the causes for the service industry's productivity slowdown and income inequality. By presenting the policy issues for securing the service industry's competition, this study attempts to define the policy implications to build the framework for economic advancement.

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Keywords

  • Servitization
  • Service Economy
  • Service Industry
  • Service Sector
  • Service Trade