The government is reviving discussions to enact the Basic Act on the Development of the Service Industry, which has failed to clear the National Assembly threshold for 15 years. The medical sector, the biggest sticking point, will be excluded from the scope of the law. The plan is to push the bill through the National Assembly and lay an institutional foundation to support key service industries.
Koo Yun-cheol, Deputy Prime Minister for the Economy and Minister of Economy and Finance, is expected to emphasize the need to enact the Basic Act on the Development of the Service Industry at the ministers' meeting on economic affairs on the 28th of this month. The meeting will also release measures to resolve on-site difficulties in the service industry.
The Basic Act on the Development of the Service Industry is a bill to enhance the competitiveness and productivity of the service industry. It provides the basis for building a government support system, improving regulations, and offering tax support. The bill was first proposed in 2011 under the Lee Myung-bak administration, but it has not been legislated to date as controversy over the commercialization of medical services flared, prompting opposition from the medical community and civic groups.
The government's decision to resume legislative discussions stems from the limits of existing measures. Although the government has presented service industry measures multiple times, the division of responsible ministries and the lack of legal basis for support have constrained policy implementation.
Earlier, Vice Premier Koo also said, "The service industry accounts for about 60% of the value added in our economy and 70% of employment, but productivity remains at about half the level of major advanced economies," adding, "It is urgent to strengthen competitiveness as a new growth engine to reinvigorate domestic demand and exports."
The government's position is that even a bill excluding the Medical Service Act, Pharmaceutical Affairs Act, Nursing Act, National Health Insurance Act, and National Health Promotion Act from its scope should pass the National Assembly threshold. The judgment is that a bill is needed to enable systematic support across the service industry. As the Democratic Party of Korea, which had been cautious about enacting the law due to concerns over medical privatization, has moved to propose the bill directly, some in and out of politics say the chances of passage are higher than before.
At present, three bills to enact the Basic Act on the Development of the Service Industry, led by Democratic Party of Korea lawmakers Kim Young-hwan and Yoon Joon-byung and People Power Party lawmaker Song Eon-seog, are pending at the National Assembly. The bills include the establishment of a pan-government control tower, the "Service Industry Development Committee," and the legal basis for active administration to drive regulatory innovation. They also contain provisions to set up a consultative and coordination body for coexistence to mediate conflicts between new and old industries.
Meanwhile, separate from the bill discussions, the government plans to continue measures to alleviate on-site difficulties in the service industry. Starting with easing safety inspection regulations for mobile Virtual Reality (VR) experience facilities, it will sequentially identify tasks for institutional improvement. The government plans to continuously share the improvement process with the public.