[National Future Strategy Insight] An Analysis on the Ripple Effect of Digital Transformation on Korea’s Economic Society and Political Insights, No. 8
Yeo Yeong-jun, an Associate Research Fellow at the National Assembly Futures Institute, predicted that with a rapid digital transformation, there may be economic growth based on the growth of digital transformation-based industries, but in terms of income distribution, income inequality may become greater.
That is to say, expanding government investment to drive digital transformation will accelerate the change in the industrial structure to be more focused on digital capital-intensive industries based on industrial linkage. This will definitely lead the future growth of the Korean economic society.
On the other hand, with digital transformation, it was predicted that there will be relatively less jobs and opportunities for middle-skill workers to obtain economic benefits, as digital transformation technology is closely linked to non-routine tasks of high-skilled workers. A wider gap within the labor market will lead to greater household income inequality, which will result in decreased inclusivity in the digital transformation era.
Accordingly, it was stated that future innovative policy initiatives in the digital transformation era should be based on the understanding of the propensities of digital transformation technology. In particular, the innovative policy initiatives should include the guarantee and support of various types of learning activities including the up-skilling, re-skilling, and creative learning of human resources within the innovation system.
The report analyzed the effects of digital transformation, otherwise known as the Fourth Industrial Revolution, on the future Korean economic society in areas of calculated effects by industries, creating added value, and creating and distributing household income. It then identified the potential risks and opportunities presenting themselves to the Korean economic social system in the digital transformation era.
Dr. Yeo stated that “in order to execute a major shift to a successful innovative system with digital transformation, organizational culture, labor-management relations, relationship between the education system and industries, and the like, must be completely reset towards a direction to seek creative learning experiences,” and mentioned that “based on the major findings of this research, it may be said that the purpose and vision of the future innovative policies in the digital transformation era should be focused on setting up an environment that strengthens learning capabilities and spreads the ripple effects of education.”
※ “National Future Strategy Insight” is a brief-type in-depth research report issued every other week to present national future strategies for Korea based on the analysis of major future issues by the research fellows of National Assembly Futures Institute.