Recovery of Service Industry Marks 3 Months of Continuous Growth

As the service industry has been continuously growing for 3 months, its growth range is extending as well.

According to National Statistical Office (NSO)’s `Service Industry’s Operation Trend in January` published on the 8th, the service industry’s operations increased 9.7 Per Cent in comparison with January, last year, and the growth range has been continuously increasing for 3 months since last November.

NSO’s chief of the service industry statistics section, Byeon Hyo-Sup, said, “Service industry’s growth in January is the highest since May 2000 (12.3%), and it seems to lead the economic recovery.”

Information-based service industry, such as Information-Communication service industry, also advanced 13.2 Per Cent compared to last year’s same month, which is the highest growth since last June.

In terms of categories of the industry, health and social welfare (including medical industry) have increased 19.6 Per Cent compared to last year’s same month due to rise of treatment fees income. Educational service industry also increased 12.8 Per Cent, as tuition fees income increased. Transportation, warehouse, and communication grew 11.2 Per Cent along with travel business’s improvements. Finance and stock industry increased 9.8 Per Cent, as stock exchange funds increased to create more commission income.

Although department stores and general retail sales were rather inactive, wholesale and retail sale industry increased 7.5 Per Cent, as automobile business was active. Hotel industry, which was depressed since the end of last year, also turned to growth, and accommodation & restaurant industry increased 7.3 Per Cent, as condominium industry grew continuously. Real estate, rental, and business industries increased 9.1 Per Cent due to real estate industry’s prosperity.

Joong-Hyun Park sanjuck@donga.com