As globalization of world economy is deepend in 20 century, the most distinctive phenomenon is the rapid expansion of service trade. Namely, global economic integration is now progressing in high speed and the so-called "globalization of production" is being accelerated. Owing to the situation, multinational companies of the advanced countries are increasing their global production system and their activities of advertisement, design, logistics in overseas countries. In addition, facing a period of globalization of information, owing to informational technics, global systems of transportation and communication have been established, and major service trade including overseas tour, education, health care, legal and accounting services are rapidly increased. And also, types of service become various in recent year. As we know, most of service industry is higher value-add than commodity industry, because it contains high technology. And the portion of service industry in the advanced countries is high according to servicelization of economy. Both Korea and China are recently propelling positive economic policy to develop their service industries because their service industries are much backward compared with the advanced countries including U.S.A, EU, and Japan etc. Recognizing this fact, the aims of this thesis are to examine the status and recent policies for developing service industries of Korea and China. And also, this thesis analyze the status of service trade and policies to increase service export of two countries. By doing so. the author try to propose the necessary policy measures to improve their services industry and trade. As the results of the study, the author can find that structure of service industry in both countries is much weaker than that of the advanced countries including U.S.A. In case of China, proportion of traditional service industries including wholesale and retail, transportation, construction is large in GDP, value-added amount, and employment. On the other hand, modern service industries including finance, insurance, education, legal and accounting services, audio-visual services, cultural services are comparatively small in its economy. Korea is better than China in aspect of proportion of service industry, and more developed than China. Nevertheless Korea service industry is also backward, compared with the advanced countries. Concerning the service trade, both Korea and china have shown a chronic deficit because their competitiveness of service industry are much weaker than that of the advanced countries. And also, foreign direct investment of service fields has decreased in recent year because of their protectionist policy. Therefore, both Korea and China have to settle or improve the following basic points to improve further their service industry and trade. First, both Korea and china have to improve productivity of service industries, and for improving it, investment to increase R&D and strengthen complexing their domestic industries focused on ICT. Second, both Korea and China have treated unfavorably their service industry in the course of propelling longtime economic development policy, in tex system and financing system. So, it is desirable that two countries have to improve their assistance systems for service industry more favorably. Third, both Korea and China are keeping still now quite strong barriers against foreign direct investment in service industries, even though two countries recently have taken several open policies. Especially, in the fields of legal service, health care, education, culture, finance, there are various entry barriers including license and prerequites of business in their countries. So, both Korea and China should give foreign service companies the footholds for fair competition.