The market size of foreign language institutes has tripled over the last five years, and that of crammers has grown 2.3 times. However, revenue of CD stores has tumbled 73 percent during the same period and that of video rental shops has fallen 44 percent.

The National Statistical Office (NSO) on Tuesday released a report on changes in Korea's service industry between 2001 and 2006. According to the report, total sales of the service industry amounted to W830.4 trillion (US$1=W941) last year, up by 38 percent compared to 2001.

While overall the industry has grown there have been dramatic changes within the various businesses, with some doing well and others faring badly. The main reason for the changes is evolving social phenomena such as the fever for private education, the aging population and low birth rate, and wide-spread Internet connections.

The market size of crammers has increased 2.3 times. Last year the total revenue of crammers in Korea was W4.3 trillion, which is W2.5 trillion more than the W1.87 trillion earned in 2001. The number of crammers leaped by 84 percent between 2001 and 2006. Thanks to the strong demand for early English education for children and TOEIC classes for job seekers, the number and revenue of language schools have nearly tripled. In contrast, the number and revenue of private computer schools have fallen by half. That's because most households now have a personal computer and public schools and workplaces now provide computer training for students and employees.

The aging population and low birth rate are important factors in the structural changes in Korea's service industry. Revenue of retirement homes has increased 4.3 times to W546 billion since 2001 and sales of "silver" products have increased 39 percent to W523 billion. Meanwhile, sales at stores that sell toddler's clothing have fallen 26 percent to W205 billion. With the growing number of women participating in economic activities, the revenue of child care facilities has increased 87 percent. Revenue of funeral service companies and funeral chapels has more than doubled as holding funerals through funeral companies has become common.

Meanwhile there has been a plunge in revenue of bowling alleys (-35 percent), book rental stores (-32 percent), photo studios (-27 percent) and baduk clubs (-21 percent). The NSO attributed this to the growing popularity of Internet entertainment. The number of patent agent offices has increased 38 percent to 409 and their revenue has increased 2.2 times to W367.2 billion. There was also conspicuous sales growth at advertising agencies (36 percent), jewelry, textiles and apparel design businesses (47 percent) and software-related businesses (149 percent).

(englishnews@chosun.com )