Abstract:This paper calculates and analyzes the index of G-L and marginal intra-industrial trade on the intra-industrial trade of services between China and South Korea during 2000—2010 and the results show that intra-industrial trade is high in the services of transportation, travel and communications between China and South Korea but that inter-industrial trade is mainly taken in other business services and government service. Based on dynamic change situation, the marginal trade of the service industry of both countries obviously demonstrates the trend of inter-industrial trade pattern, which indicate that the service industry between China and South Korea has weak complementarity. The comparative advantage of labor and capital to service industry and their influence on trade pattern become weaker and weaker, however, the industrial policies of a government gradually become one of the important reasons for determining service trade competence and trade pattern, thus, active industrial policy should be taken to boost China’s service trade competence and to improve trade structure.