Digital Economy: A New Prospect for Korea's New Southern Policy

Korea's cooperation with Southeast Asian countries and India(New Southern Policy countries) has been mainly focused on the establishment of manufacturing production networks. Recently, the need to add a new dimension to the existing framework of cooperation is being raised. The demand in sectors related to the digital economy of those countries is increasing. Many of the NSP countries are now striving to achieve economic and industrial leaps through implementing digital transformation. Considering the mid- and long-term economic development directions of Korea and the NSP countries, it is necessary to pay attention to the digital economy as a new area of mutual prosperity. Southeast Asian countries and India have strong potentials for digital transformation with the high economic growth, large population, high ICT utilization levels, etc. Conditions for trade and investment are also favorable as their economic openness is being achieved. Korea and the NSP countries need to establish a comprehensive digital economy cooperation platform. Through this, Both sides can inform partners of their digital economy-related agenda/interests and discuss ways for cooperation. Especially, it will provide chances for participants to identify mutual cooperation needs efficiently and specifically. Innovative small businesses and startups should be the focus of the cooperation. For Korean side, based upon thorough and comprehensive understanding on the NSP countries' social and economic context, cooperation focusing on their urgent demands is of great importance.