Gov't to double R&D spending on service sector by 2012

SEOUL, Jan. 14 (Yonhap) -- The government will more than double its research and
development (R&D) investment in the nation's service sector over the next four
years in a bid to enhance its overall competitiveness, the finance ministry said
Wednesday.

The Ministry of Strategy and Finance said that it aims to double R&D investment
in the service sector by the end of 2012. Service-sector investment currently
accounts for about 1 percent of the nation's total spending in research
activities.
"Despite the service sector making up an increasing portion of gross domestic
product, the ratio of R&D investment in the sector has remained stagnant compared
with other competitive countries," the ministry said in a statement. "We will
streamline related laws and regulations to draw investment not just from the
government but from the private sector as well."
As of 2007, private-sector investment in the area stood at 7.2 percent of the
sector's total R&D spending, the ministry said. The figure is significantly lower
than the average 23.7 percent for member countries of the Organization for
Economic Cooperation & Development.
The move is part a sweeping plan announced by the ministry to enhance the
competitiveness of the local service sector. It is in addition to the two
previous policy packages for the sector unveiled in April and September of last
year.
Since the inauguration of President Lee Myung-bak in February last year, South
Korea has been striving to boost its service sector, which has been long
sidelined as manufacturers have driven the nation's economic growth in recent
decades.
The two previous "Service Progress" policy measures focused mostly on boosting
the tourism industry and easing regulations on the ownership structure of
broadcasting companies. The efforts are also in line with the government's drive
to create more jobs amid dwindling employment figures.
kokobj@yna.co.kr
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