future of the manufacturing industry I ？ The growing prominence of the service
industry as a source of intermediary services and its implications
The background of the research
The growing prominence of the service industry as a source of intermediary services
Conclusion and implications
manufacturing industries of China, Germany, Japan, Korea and the U.S. were
compared with each other to study the level of contribution made by services in
producing goods made for exports.
these five countries, Germany was ranked number one with services contributing
36.5% to producing goods made for exports and Korea was ranked the lowest with
◆ Added value produced by service exports
outpaces the added value produced by manufacturing in global value chains.
As of 2021, the service industry’s contribution to the global value chains
reached 65.3%, whereas the contribution made by manufacturing stalled at 53.4%
◆ The role of services as a source of
intermediary services is earning greater prominence as a tool in producing
goods for exports.
The share of contribution made by services in producing good for exports
increased to 32.3% in 2021, which stood at 29.8% in 2011.
◆ An effort to benchmark Germany is recommended,
as Germany’s share of contribution made by services in and out of the country
shows similar patterns with that of Korea.
◆ Taking advantage of services as intermediary
services is required by encouraging convergence between the Korean service and
was revealed that added value produced by service exports outpaces the added
value produced by manufacturing in global value chains. This finding is serving
as a source of boosting awareness of the growing role and the responsibility of
the service industry as a contributor in boosting production and exports. The
service industry has contributed more to global value chains by a big margin
for the past two decades compared to the manufacturing industry. The service
industry’s contribution to the global value chains has hit 65.3% in 2021, which
is a 6.0%p rise from 59.3% posted in 2010 shortly after the global financial
crisis. On the other hand, the share of contribution made by the manufacturing
industry in global value chains was 53.4% in 2021, which is only a meager
increase by 1.7%p during the same period. The prominence of the service
industry as a source of intermediary services is becoming more significant in
producing products for exports. This brings the need to focus on the following
two tasks to strengthen the competitiveness manufactured goods produced in
Korea - a) taking the full advantage of the benefits materialized by converging
the service industry and the manufacturing industry and b) reinforcing the
competitiveness of intermediary services as means of buttressing exports.
Boosting the contribution of services is a universal trend that is utilized as
a method to increase aggregate exports of the manufacturing industry. However,
it was revealed Korea lags behind major countries, including the U.S., Japan,
Germany and China, in the level of convergence of the service industry and the
manufacturing industry. Innovations in the manufacturing industries made by
advanced nations will inevitably lead to a big change requiring Korean
manufacturing companies to incorporate innovative services in their production
procedures. Korean companies should a) embrace this change and bolster their
efforts to develop and utilize services that are used in their manufacturing
procedures and b) benchmark the industrial structure unique to Germany to
increase the role of services in Korea’s manufacturing sector.
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published in a new article released by Samsung Display’s Newsroom website at