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used results from research words and data reports from relevant state agencies,
departments and Institutes on implementing strategies in Korea.
Drawing on the analytical framework that analyses Government’s investment into
Startups and Venture Capital in South Korea. The development of South Korea's digital
economy is closely linked to the demand for new digital skills. The article shows Top 10 in
Demand Skills in South Korea for 2026 and nine leading technology trends are poised to
revolutionize South Korean industries.
3. The situation of South Korea's digital economy development post-Covid-19
After the Covid-19 pandemic, South Korea became one of the leading countries in
developing the digital economy to recover and sustain growth. In 2020, as part of its post-
Covid-19 economic recovery strategy, Korean government implemented the "Digital New
Deal" – a component of the "Korean New Deal” 1 – focusing on digital transformation,
data infrastructure development, artificial intelligence and online public services.
The "Digital New Deal" is a large-scale project aimed at overcoming the economic
crisis caused by the COVID-19 pandemic through the digital transformation of South
Korea's entire economy and society. In 2021, under the “Digital New Deal”, South Korea
invested 262.6 billion won (US$242 million) to enhance training in AI and software.
Approximately 16,000 AI and software professionals will be trained, with the goal of
creating 100,000 highly skilled workers across various industries by 2025 . The
2
government views the digital economy as a new growth engine, promoting digital
transformation in small and medium-sized enterprises (SMEs) and supporting startups in
accessing advanced technology, with over 20,000 startups operating in various sectors.
The government and large corporations (Samsung, LG, SK, Hyundai, etc.) fund startups
through venture capital funds and incubation programs. Many South Korean startups
have partnered with global corporations to overcome challenges, helping them leverage
resources. Large businesses gain access to new technologies and the flexibility offered by
startups. Venture capital is also pouring into South Korean startups. In 2021, startup
capital grew by 78%, surpassing 7.7 trillion won (US$6.4 billion). The number of new jobs
created by startups exceeded the number of jobs created by the four largest corporations
combined (See Appendix Table1)
Under the "Digital New Deal", South Korean e-commerce is experiencing strong
growth, driven by prominent corporations such as: Coupang Group – South Korea's
largest e-commerce company, often referred to as the "Amazon of Korea"; Naver - a
leading South Korean technology and Internet conglomerate – considered the "Google of
Korea"; and Kakao - a diversified technology and internet conglomerate expanding its fast
delivery and digital payment services. Fintech and digital banking are developing rapidly
thanks to the demand for contactless payments. South Korea supports digital skills
training for workers, reducing unemployment and adapting to the remote work model.
In 2021, South Korea spent 5.8 trillion won (approximately US$5.3 billion) on
scientific research and information and communication technology (ICT) to develop new
technologies under the Digital New Deal. The prospects for South Korea's digital economy
are bright, with significant investment, allocating 1.8 trillion won (US$1.66 billion) to basic
scientific research and committing 287.9 billion won (US$265.2 million) to critical

1 “Korean New Deal” includes 3 pillars: Digital New Deal, Green New Deal and Stronger Safety Net with a
total capital of 160 trillion won (US$114 billion)
2 South Korea is striving to become a leading nation in digital transformation.

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