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THE DEVELOPMENT OF SOUTH KOREA'S DIGITAL ECONOMY POST-COVID 19:
ACHIEVEMENTS AND LESSONS LEARNED FOR VIETNAM

Pham Quang Chinh , Vu Thi Phuong Dung , Pham Thi Thanh Binh* 3
2
1
1 Central Commission for Policy and Strategy, Hanoi, Vietnam.
2 HongBang International University, Ho Chi Minh City, Vietnam.
3 Hanoi Open University, Hanoi, Vietnam.
(*E-mail: phamthanhbinh297@yahoo.com.vn)

ABSTRACT
Post-COVID-19, South Korea was facing forecasts of low growth due to political
instability and external risks. South Korea was recognizing the crucial role of the digital
economy as a key driver for recovery and growth. Developing the digital economy helps
South Korea maintain its competitive edge in high-tech industries such as semiconductors,
artificial intelligence (AI), and telecommunications. It also provides solutions to create
new momentum and reduce dependence on the traditional growth model. Digitalization
is a key to maintaining export competitiveness and improving labor productivity. This
article consists of three main parts: Firstly, it analyzes the current state of South Korea's
digital economy development post-Covid-19, exploring the progress of venture capital
investment as well as South Korea’s economic growth after Covid-19; Secondly, it
summarizes four achievements in the development of South Korea's digital economy;
Finally, it draws some lessons for Vietnam's digital economy development from South
Korea's experience.
Keywords: Digital economic development, current situation, achievements, lessons
learned, South Korea, Vietnam.

1. Introduction
The South Korean economy was already in decline even before the COVID-19 crisis,
as its working-age population slowed and labor productivity growth stalled. Following the
COVID-19 pandemic, South Korea's GDP growth continued to decline sharply. For the first
time in 22 years (1999-2020), South Korea recorded negative growth (-1.1% of GDP) due
to the severe impacts on exports and industrial production. Exports decreased by 6.4%,
particularly in key industries such as automobiles and electronics. Traditional service
sectors (tourism, direct retail) were heavily affected by the Covid-19 pandemic. Against
this backdrop, South Korea has identified the digital economy as a driving force for
recovery and growth, mitigating risks from international trade fluctuations, and affirming
the necessity of developing the digital economy to enhance competitiveness, reduce
dependence on traditional exports, and adapt to global changes as almost all countries
shift to digital economies to adapt to the Fourth Industrial Revolution.
2. Literature review and research methodology
The concept of the digital economy was first proposed by Tapscott D (1996), who
argued that the age of cyber intelligence is not only about connecting technology but also
about connecting people through technology. After the COVID-19 pandemic, the role of
the digital economy in economic recovery has attracted the attention of many scholars.
Some scholars argue that the digital economy plays a very positive role in pandemic
prevention and control, added value distribution in global value chains and economic

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