From 2013 to 2023, the production of business services in South Korea has shown overall positive growth despite experiencing significant fluctuations. The sector saw a considerable dip in 2020, dropping by 14.43%, primarily due to the global COVID-19 pandemic. However, the industry rebounded strongly in 2021 with a remarkable year-on-year growth of 24.03%. By 2023, the value stood at 1604.4 trillion South Korean Wons, reflecting a steady growth trend of 2.67% compared to the previous year. The Compound Annual Growth Rate (CAGR) over the last five years averaged at 2.79%, indicating moderate long-term growth.
Future trends to watch for:
- Expected continued moderate growth with a forecasted 5-year CAGR of 2%.- Total production predicted to reach 1822.3 trillion KRW by 2028, representing a 10.43% increase over the forecast period.- Potential impacts of technological advancements and digital transformation on service production.- The effects of global economic conditions on export-driven business services sector.
