[Opinion] Transition to a 'Digital Public Society' as the Goal of ICT Policy

Professor Shin Minsu, Hanyang University

As predicted by the 2016 Davos Forum, digital transformation and the new normal have become irresistible megatrends. The COVID-19 pandemic accelerated this transition. In response to these changes, the current government announced the Digital New Deal policy. The core of this policy includes the digital transformation of educational infrastructure and the promotion of digitalization in foundational facilities such as transportation, water resources, cities, and logistics. The social and economic changes pursued by the Digital New Deal represent a timely approach.

However, as the pandemic has lasted longer than expected, there are limitations to restoring the post-pandemic socioeconomy and creating dynamism solely through the technology-centered approach pursued by the Digital New Deal. This technology-centered approach tends to focus on cost reduction or supply expansion, making it difficult to guarantee competitiveness in the market. The Digital New Deal must proceed in a direction that discovers and develops new growth engines and revenue sources to secure our competitiveness within the new international order.

Moreover, shocks like the pandemic are harsher on the weak links in our society, and the digital divide is no exception. Therefore, ICT policies necessary for crisis management must go beyond the technology-centered Digital New Deal and support new value creation by effectively utilizing digital infrastructure and resources. To this end, five major sectors of the ICT ecosystem leading digital transformation are required: ICT services, platforms, manufacturing, networks, and close and flexible connections among users. The value created in this way will be sustainable and inclusive, generating unique value that other countries will find difficult to imitate.

In particular, tailored policy innovations are needed for various phases of collaborative networks across multiple industries. The first phase of the policy innovation equation is establishing a foundation for digital transformation without blind spots. There must be no blind spots in the benefits arising from digital transformation. To ensure that everyone can enjoy digital benefits, the first step must be the advancement and reliability assurance of network infrastructure and service environments. The second phase of the innovation equation is leading global ICT dominance and driving ICT manufacturing. This involves pursuing the development of manufacturing related to ICT devices and equipment necessary for network infrastructure and service provision, and securing global technological competitiveness to lay the foundation for sustainable growth.

ICT manufacturing and service industries are sectors capable of creating employment, and a chain effect of job creation and added value can be expected. The third phase in the innovation growth equation is discovering and spreading innovative businesses. New content and service markets are being developed and expanded through digital transformation, such as OTT, new media, metaverse, and NFT, which can inject dynamism and vitality into the entire economy. In this process, platforms, another axis leading digital transformation, are expanding throughout the socioeconomy, and their active role and social responsibility are required for the healthy and sustainable growth of the new demand ecosystem.

For successful digital transformation, balanced and sophisticated policies must be developed to achieve both innovative growth and inclusive growth simultaneously. The transition to an inclusive digital value co-prosperity society means a substantial increase in basic income. Inclusive digital transformation can not only improve labor productivity but also increase real disposable income by reducing the digital costs of weak links. This direction is the only way for the value created through digital transformation to be evenly distributed throughout society and to enhance real welfare benefits. This is an investment in the lives of the people. Through this virtuous cycle of innovation, real welfare will increase, creating a happier, safer, and more dynamic Republic of Korea.

Shin Minsu, Professor at Hanyang University

This content was produced with the assistance of AI translation services.