Power factor applies to inductive loads, where coils are used to provide a large back emf to fire up discharge tubes and then used to limit the current flow across the tubes. Motors being inductive also require pf correction.
Since a capacitor provides a leading power factor, it counteracts the laging pf of the coil, to a degree. You don't want a perfect correction since this can create large oscillating currents and voltages across the components, usually an acceptable value would be around 0.93.
Most individual components with coils and capacitors as a rule of thumb provide a basic pf correction of 0.85. This in most cases is suitable for small installations but would require further correction, at the main incomer for large installations