The South Korean government is set to foster the service industry as a driver of economic growth alongside the semiconductor sector. Approximately 410 billion won will be invested next year, focusing on five major tourism zones centered around regional airports, while expanding support for the exhibition industry and AI-based K-beauty services. To ensure the benefits of growth are distributed evenly among citizens, measures to alleviate polarization will also be developed, focusing on housing, jobs, and financial support for low-income households.
Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il chaired a meeting of the Emergency Economic Headquarters and the Economic Relations Ministers' Meeting, along with the Service Industry Development Task Force on October 14 at the Government Complex in Seoul.
Lee commented on the International Monetary Fund's (IMF) recent upward revision of South Korea's economic growth forecast for this year from 2.6% to 3.3%, stating, "The robust growth of our economy, including strong semiconductor exports, has received international recognition as outweighing the negative impacts of the Middle East conflict."
He emphasized the need for additional growth drivers alongside semiconductors, proposing the service industry as a new engine of growth. The service sector is expected to create jobs and contribute to youth employment and regional economic revitalization, aiming to capture both growth and public welfare. He also requested cooperation from the National Assembly for the timely enactment of the proposed Service Industry Development Basic Law.
The government plans to shift the structure of inbound tourism from primarily entering through Incheon International Airport to direct arrivals at regional airports, encouraging visitors to explore local areas.
Financial support and regulatory exemptions will be implemented around the five major tourism zones selected in September, including Gimhae, Daegu, Cheongju, Yangyang, and Muan airports, with a goal of attracting 5 million visitors by 2029.
The planned financial investment for next year in connection with the five tourism zones will total approximately 410 billion won, combining national and local funds. The government’s proposal for 2027 includes 27 projects across eight ministries, focusing on improving entry through regional airports, ports, and cruise facilities, as well as enhancing transportation, accommodation, payment convenience, and developing specialized content.
Regulatory exemptions related to the upcoming Mega Special Zone Law are also under consideration. To address transportation and language issues faced by tourists, pilot projects utilizing AI technology for parking congestion analysis and multilingual translation will be launched.
The exhibition industry aims to cultivate more than five national and regional representative exhibitions by 2030. The first 'K Connect AI' exhibition, linking advanced industry exhibitions such as the Korea Electronics Show and Semiconductor Exhibition with AI, will be held this year, alongside the expansion of representative exhibitions for K-food and beauty.
Regional representative exhibitions will be selected in connection with the five growth engines and three special features to enhance planning capabilities and support international expansion. Plans are also in place to designate exhibition industry development zones to foster local ecosystems.
Support for high-value K-beauty services, including customized cosmetics and medical beauty using AI-based skin diagnostics, will be expanded. The skin data bank will be restructured for AI training, and regulations will be streamlined to allow one pharmacist to manage multiple stores when using AI and automated devices for customized cosmetics.
To enhance payment convenience for foreigners, the number of stores distributing standard QR codes will increase from 40,000 this year to 80,000 next year. A K-beauty academy will open in Osong, North Chungcheong Province, in the first half of next year, training 1,900 professionals annually.
To lower barriers for medical tourism visa applications, a pilot project will be launched in the first half of next year to improve visa review requirements and procedures for medical and wellness tourism. Support for overseas expansion, previously limited to medical and bio sectors, will also be extended to beauty services.
Regarding measures to alleviate polarization, Deputy Prime Minister Lee stated, "We have already begun formulating three key social policies focused on housing, jobs, and financial support for low-income households," adding, "We will collaborate with all ministries and national research institutions to devise effective measures that citizens can feel."
The national discount festival, 'Korea Grand Festival,' aimed at boosting domestic consumption, will take place from October 29 to November 15 for 18 days. During the event, the discount rate for digital gift certificates will increase from 7% to 10%, and a total of 1.7 billion won in prizes will be awarded through a consumer lottery, along with discounts of up to 50% on agricultural, livestock, and seafood products. Detailed information will be announced later this month.
Additionally, the meeting reviewed the 11th oil price ceiling proposal and the response to the situation regarding the Middle East conflict. The government plans to comprehensively assess international oil prices and the burden on citizens amid rising tensions in the Middle East, including the Strait of Hormuz and the Red Sea, and will announce the new oil price ceiling on October 16 at 6 p.m. The new price will take effect at midnight on October 17.
* This article has been translated by AI.
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