Lee Hyung-il: 'Services industry is next after semiconductors' — W410b earmarked for five regional tourism zones

The government plans to develop the services industry as the next engine of economic growth after semiconductors. To that end, it will invest 410 billion won ($306 million) next year to attract 5 million arrivals to five broad regional tourism zones — centered on Gimhae, Daegu, Cheongju, Yangyang and Muan airports — by 2029. It also aims to develop at least five flagship national and regional trade exhibitions by 2030 to build a business platform befitting a $1 trillion export economy.

Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il made the announcement Wednesday at the Emergency Economic Headquarters meeting and the Economic Ministers' Meeting and Service Industry Development Task Force at Government Complex Seoul. "We need a second and third runner to race alongside semiconductors and lead growth," Lee said. "The services industry is one of them."

He added that the services industry is a strong job creator and that high-value-added sectors such as K-content have recently emerged as new growth drivers.

Lee also noted that the sector is closely tied to everyday life, employs a large share of young workers and contributes to regional economic vitality — all of which benefit ordinary citizens.

"The government will use the development of the services industry to pursue both growth and people's livelihoods at the same time," Lee said. He also called on the National Assembly to pass the Basic Act on Service Industry Development, currently before the legislature, before the end of the year.

Lee said the government is also preparing three core social policies covering residential support, employment and financial services for low-income households, and pledged to work with all ministries and state-run research institutes to deliver antipolarization measures that citizens can feel directly.

The meeting also discussed ways to draw more foreign tourists — currently concentrated in the greater Seoul area — to the regions by encouraging direct arrivals through provincial airports and using that as a springboard to energize the five tourism zones.

The government designated the five broad regional tourism zones last month, each anchored by one of the provincial airports: Gimhae, Daegu, Cheongju, Yangyang and Muan.

Lee set a target of 5 million arrivals across the five zones by 2029. The government plans to commit about 410 billion won in national and local funding next year and will review regulatory exemptions linked to a planned "mega special zone" bill expected to be introduced soon.

The government will also pursue AI pilot projects to address problems that inbound tourists face, such as transportation and language barriers.

At the same meeting, the Ministry of Trade, Industry and Energy unveiled its "Exhibition Industry Development Roadmap 2030." The roadmap calls for consolidating major domestic high-tech trade shows — covering electronics, semiconductors and robots — under the single theme of AI to create larger-scale events. Timed to coincide with the completion of KINTEX's third exhibition hall in November 2028, the plan is to merge the Korea Electronics Show, Semiconductor Show, Asia Machinery & Manufacturing Industry Show and Robo World into a single event to be developed into Asia's premier high-tech industry exhibition.

The roadmap also includes measures to foster regionally distinctive exhibitions to ease the concentration of events in the greater Seoul area. Starting next year, the government will select and intensively support regional flagship exhibitions that combine local cultural, tourism and commercial programs, drawing on a five-hub, three-special-zone growth engine framework. To fund this, the government has increased the related support budget from 7 billion won this year to 11.7 billion won next year — a rise of 4.7 billion won.

Lee announced that during the "Korea Grand Festival," a nationwide discount festival running Oct. 29 through Nov. 15, the discount rate on digital Onuri gift vouchers will be raised from 7 percent to 10 percent. The government will also run a "win-win consumption lottery" offering a total prize pool of 1.7 billion won. Additional consumer benefits will include discounts of up to 50 percent on agricultural, livestock and fishery products. Details are to be announced this month after consultations among related ministries.

Regarding the petroleum price ceiling currently in effect to cushion the impact of oil price shocks from the war in the Middle East, the government will announce the 11th maximum price — effective from midnight Saturday — at 6 p.m. on Friday.