Core Viewpoint - The article emphasizes that South Korea's experience in expanding service consumption over the past three decades provides valuable lessons for China, particularly in enhancing domestic demand and service sector growth [2][14]. Demand Side Summary - The South Korean government has established a social security safety net and gradually reduced standard working hours, which has positively influenced service consumption [8][14]. - The labor distribution rate in South Korea decreased in the late 1990s, leading to reforms that expanded social welfare coverage, thereby reducing the household precautionary savings motive and promoting service consumption [8]. - The introduction of a five-day workweek has increased leisure spending, although the prevalence of overtime work may limit the effectiveness of this policy on service consumption [8][11]. Supply Side Summary - South Korea's "Cultural Nation" strategy initiated in 1998 has significantly boosted the domestic cultural industry and global "Korean Wave," enhancing service consumption demand [12]. - Systematic improvements in the business environment for the service industry have been made since the early 2000s, focusing on market-oriented reforms in taxation, finance, and corporate burdens, which have supported sustained growth in service consumption [12]. Recommendations for China - China should enhance its social security system to support consumer confidence and convert savings into service consumption growth [14]. - It is essential to implement labor rights for rest and encourage consumer participation to prevent excessive overtime from encroaching on leisure time [14]. - Increasing the share of resident income in national income distribution and labor remuneration in primary distribution is crucial for stabilizing income expectations and promoting a healthy household financial cycle [14]. - On the supply side, China needs to accelerate the expansion and quality improvement of the service sector and develop distinctive local industries to foster new growth points in service consumption [14].

Core Insights - The article emphasizes the steady expansion of consumption in South Korea over the past thirty years, highlighting the increasing share of service consumption and the growth of demand for experiential services, which is attributed to significant government reforms at the turn of the century [3][4][22]. Demand-Side Analysis - The South Korean government has implemented a social security safety net and gradually reduced standard working hours, which has positively impacted service consumption [9][28]. - The labor distribution rate in South Korea decreased in the late 1990s, leading to reforms in the social security system that expanded coverage and reduced the motivation for precautionary savings, thus promoting service consumption [9][28]. - The introduction of a five-day workweek has increased leisure spending, although the prevalence of overtime work may limit the effectiveness of reduced working hours on service consumption [9][28]. Supply-Side Analysis - South Korea's "Cultural Nation" strategy, initiated in 1998, has fostered the development of the cultural industry, enhancing domestic demand for entertainment and cultural consumption while also promoting the global "Korean Wave" [13][33]. - Regulatory reforms since the early 2000s have shifted from heavy intervention to a market-oriented approach, improving the business environment for service trade, which has been crucial for the sustained growth of service consumption in the 21st century [13][33]. Implications for China - China has the potential to expand service consumption under appropriate policy guidance, focusing on enhancing the social security system, ensuring workers' rights to rest, and increasing residents' income [15][35]. - On the supply side, China should accelerate the expansion and quality improvement of the service industry, encouraging the development of local特色产业, and establish a high-level socialist market economy to unleash market vitality in the service sector [15][35].

Core Insights - South Korea has experienced steady expansion in total consumption and an increase in the share of service consumption over the past thirty years, driven by government reforms at the turn of the century, which provide valuable lessons for China [3][21][22]. Demand-Side Analysis - The South Korean government has established a social security safety net and gradually reduced standard working hours, which has positively impacted service consumption [9][27]. - The labor distribution rate in South Korea declined in the late 1990s, leading to reforms in the social security system that expanded coverage and reduced the household precautionary savings motive, thus promoting service consumption [9][27]. - The implementation of a five-day workweek has increased leisure spending, although the prevalence of overtime work may limit the effectiveness of reduced working hours on service consumption [9][27]. Supply-Side Analysis - South Korea's "Cultural Nation" strategy, initiated in 1998, has fostered the development of the cultural industry, enhancing domestic demand for entertainment and culture while also promoting the global "Korean Wave" [13][32]. - Regulatory reforms since the early 2000s have shifted from heavy intervention to a market-oriented system, improving the business environment for service trade, which has been crucial for sustained growth in service consumption [13][32]. Recommendations for China - China has the potential to expand service consumption through improved social security systems, ensuring workers' rights to rest, and increasing household income [15][34]. - On the supply side, China should enhance service industry capacity and quality, encourage the development of local特色产业, and establish a high-level socialist market economy to unleash market vitality in the service sector [15][34].