The Effect of Knowledge Intensive Business Services on the Korean Economy

This study is designed to examine how much impact KIBS as a whole has on South Korea’s economy and which one among KIBS has had the strongest impact towards the development of South Korea’s economy. It also aims to investigate which knowledge- based industry has influenced Korea’s primary, secondary, and tertiary industries the most. This study applies an inter-industry analysis to quantify KIBS’ economic spillover into other industries. Each KIBS sector’s effects on the three industries in terms of production-, value added-, labor cost-inducing Effects, and supply shortage effect have been examined. The results of this study are expected to contribute not only to the development of KIBS industry itself but also to the establishment of KIBS utilization policy and other industrial development policies based on economic effects between KIBS and other industries.