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ranks 4th globally (surpassing Japan, Singapore, and China) and is the top country in Asia.
This is the sixth consecutive year that South Korea has been in the Top 10 of the Global
Innovation Index for the period 2020-2025, demonstrating the widespread recognition of
South Korea's innovative capabilities.
The government plays an active role in building the foundation for innovation, from
education and research to business support. With a strategic shift in development
thinking from "Made in Korea" to "Created in Korea," the government views innovation as
a lever to elevate the national brand, building a supportive ecosystem encompassing
policies, capital, and infrastructure. The creative industries contribute tens of billions USD
into GDP, becoming a new pillar alongside heavy industry.
The creative industries associated with electronic entertainment have become a
crucial pillar of the South Korean economy, helping South Korea strengthen its soft power
and enhance its national standing on the international stage. Electronic entertainment
contributes to promoting South Korea's digital economy development policy with the
explosion of digital content (K-pop, movies, online games), meeting domestic
entertainment needs while also becoming an important digital cultural export industry.
The South Korean online gaming industry is expected to reach a value of US$20.9 billion in
2024, ranking fourth globally after China, the US, and Japan, and is projected to increase
to US$23 billion in 2025 thanks to the development of mobile games, esports, and new
technologies such as artificial intelligence (AI), virtual reality (VR), and augmented reality
(AR).
5. Factors contributing to the achievements of South Korea's digital economy
development
The achievements in South Korea's post-COVID-19 digital economic development
are due to the contributions of the following factors:
Firstly, the guiding role of the South Korean government in the development of the
digital economy.
The South Korean government played a central role in promoting the development
of the digital economy through heavy investment in Industry 4.0 technologies and smart
factories, particularly after the Covid 19. The government encouraged businesses to
adopt artificial intelligence, big data, and IoT in manufacturing. The goal is to have over
30,000 smart factories by 2025, helping to increase productivity and reduce costs.
Encouraging businesses to undergo digital transformation, implementing fiscal and tax
policies to support economic recovery. Reducing corporate tax from 25% to 22% to
encourage investment and create jobs. Supporting the real estate sector. The government
has launched financial support packages to stabilize the economy and boost consumption.
Secondly, perfecting the institutional framework for digital economic development.
Post-COVID-19, South Korea has focused on perfecting its digital economic
development institutions by implementing a "Digital Platform Government" strategy
through the integration of national data, online public services, and artificial intelligence
to improve management efficiency. It has also reformed its legal framework to support
innovation and built a legal framework for new technologies such as AI, blockchain, and
fintech. Revise regulations on data, security, and e-commerce to encourage businesses to
adopt digital technologies. Develop a legal framework for new technologies regulating
blockchain, fintech, and artificial intelligence to ensure transparency, security, and
promote competition, thereby strengthening the trust of businesses and citizens, and
creating a favorable environment for comprehensive digital transformation.

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