Vice Minister of Economy and Finance: "1%p Increase in Value-Added Share Creates 100,000 Jobs"

Government to Create 300,000 Service Jobs by 2025

[Image source=Yonhap News]

[Asia Economy Reporters Jang Sehee, Moon Chaeseok] Kim Yongbeom, the 1st Vice Minister of the Ministry of Economy and Finance, explained the basis for calculating 300,000 jobs in the service industry, stating, "When the value-added ratio of the value-added service industry rises by 1 percentage point, it is calculated that more than 100,000 jobs are created." The government previously announced that it would create 300,000 jobs in the service sector by 2025.

At the '31st Emergency Economic Central Countermeasures Headquarters (CECH) regular briefing' held at the Government Seoul Office on the 3rd, Vice Minister Kim said, "The employment inducement coefficient of the service industry (the number of jobs induced per 1 billion KRW of production) is about 12.8."

He explained, "We assumed that the proportion of promising service industry jobs such as information and communication, finance and insurance, healthcare, and social welfare services is about 46.8%. Based on this assumption, when the value-added ratio rises by 1 percentage point, the number exceeds 100,000."

Furthermore, assuming stable quarantine conditions, plans are underway to support demand creation in the service industry focusing on culture, accommodation, dining, and sports services through the '4+4 voucher and coupon' program. Vice Minister Kim emphasized, "The use of consumption coupons is fundamentally operated through close consultation with quarantine authorities according to the quarantine situation."

He added, "We prepared a non-face-to-face usage plan through delivery apps last year, and after system improvements for this year's budget, it will be available soon. We are also promoting the use of other sports coupons in a non-face-to-face manner."