Korean Standards Association Announces First Half Results of the '2020 Korea Service Quality Index'

[Asia Economy Reporter Kim Cheol-hyun] The results of the Korea Service Quality Index (KS-SQI) survey, which comprehensively represents the quality level of South Korea's service industry and the degree of improvement by company, have been announced.

According to the Korea Standards Association on the 1st, a survey on the service quality level was conducted on about 29,000 people who experienced services from 107 companies across 29 industries including finance, telecommunications, and retail. The average score across all industries was 73.4 points, down 0.4 points from the previous year.

Since the survey began in 2000, KS-SQI had shown a steady upward trend except for the late 2000s when the global financial crisis caused an economic downturn. However, this year, most companies experienced a contraction in overall consumption due to the novel coronavirus infection (COVID-19), which also affected customer service. The KS-SQI score of 73.4 points has returned to the 2016 level, indicating a pause in the upward trend.

All seven dimensions that make up the KS-SQI scores declined compared to the previous year. The dimension related to differentiated services such as various benefits provided by companies, called 'Unexpected Additional Services,' saw the largest drop of 0.9 points (1.3%) from the previous year. This can be interpreted as a negative impact on the service quality elements perceived by customers due to the reduction of additional benefits and services amid worsening business conditions. The dimension related to the media usage environment and convenience, 'Physical Environment,' showed the smallest decline with a 0.1 point drop. The Korea Standards Association explained that this can be seen as a positive signal reflecting the increased convenience of digital channels due to the recent preference for non-face-to-face services.

The top companies in this survey include SK Telecom (21 consecutive years), Samsung Fire & Marine Insurance (19 consecutive years), Samsung Electronics Service (19 consecutive years), Samsung Life Insurance (18 consecutive years), 11st (11beonga, 13 consecutive years), SK Telink (12 consecutive years), and KT (12 consecutive years), all recognized for over 10 years for excellence in customer service. GS25, S-1 Corporation (8 consecutive years), Shinhan Bank, and Samsung Card (7 consecutive years) were also continuously selected as top companies in their respective sectors. Notably, Lotte Homeshopping was ranked first for the first time in 8 years after continuous efforts to improve service quality, and Samsung Securities returned to first place after 3 years.

A representative from the Korea Standards Association said, "Despite the difficult business environment, KS-SQI first-place service companies are rapidly seeking to evolve their services centered on non-face-to-face channels in preparation for the post-COVID era," adding, "Customers consuming services desire more valuable and safe services, and companies are constantly striving to meet these expectations and gain customer empathy."