1. Since the global financial crisis, the proportion of goods trade in global trade has declined, while the share and importance of services trade have increased significantly from 19.4 percent in 2011 to 24.1 percent in 2023. Rising uncertainty in the global trade environment has made it difficult for goods trade to grow at a rapid pace as seen in the past. At the same time, Korea's economy faces intensified competition from China in the global market, driven by its growing technological capabilities. In this regard, it is essential for Korea to focus on service exports as a new engine of growth.

2. Korea's service exports have been growing slowly and maintained a relatively low share of the global market compared to major economies

.3. However, while overall growth in service exports has been modest, certain sectors are showing strong potential for rapid growth. In particular, exports in the intellectual service sector are expanding rapidly in the global market, with Korea experiencing particularly faster growth.

4. The rapid growth of Korea's intellectual service exports can largely be attributed to two key factors: (1) the growing trend of convergence between manufacturing and services, and (2) the enhanced global competitiveness of cultural content such as K-pop, webtoons, and games.

5. However, there are areas that require improvement to better position Korea's service exports as a new growth engine in the future.

6. In response, businesses must first recognize the value of intangible assets, such as data and intellectual property, as well as the growth potential of the service sector. Moving away from their traditional investment focus on manufacturing facilities and construction, they should actively expand their investments in services. Such investments will not only enhance service quality but also ultimately strengthen the competitiveness of the manufacturing sector. However, these efforts by businesses are unlikely to yield meaningful results without bold government action to lower regulatory barriers. For example, the government should seek to break down barriers between industries, thereby creating greater opportunities for companies to engage in convergence and explore new business areas. Furthermore, it is equally important to identify, support, and nurture talent from an early stage, particularly individuals with the potential to excel in areas such as research and development of original technologies and cultural and artistic creation.