Statistics Korea, Changes in South Korea's Industrial Structure from a Digital Deepening Perspective
An analysis revealed that the concentration in the Seoul metropolitan area is more pronounced in industries with deeper digitalization.
On the 27th, Statistics Korea published the spring 2023 issue of 'KOSTAT Statistics Plus,' which includes a report titled 'Changes in South Korea's Industrial Structure from the Perspective of Deepening Digitalization.'
The issue analysis contains an examination of changes in South Korea's industrial structure from the perspective of deepening digitalization, as well as an analysis of characteristics and implications of birth-related indicators in regions experiencing population decline. According to the report, over the past 20 years, the concentration in the Seoul metropolitan area has become notably evident in several areas, including the proportion of young employed persons, the share of total gross regional domestic product (GRDP), and the scale of net population inflow.
From 2000 to 2021, the proportion of young employed persons in the Seoul metropolitan area increased by 5.6 percentage points from 50.8% to 56.4% compared to the national total, while the proportion in non-metropolitan areas decreased by 5.6 percentage points from 49.2% to 43.6%.
During the same period, the Seoul metropolitan area's share of total GRDP rose by 4.1 percentage points from 48.8% to 52.9%, whereas the share in non-metropolitan areas declined by 4.1 percentage points from 51.2% to 47.1%.
To analyze this concentration in the Seoul metropolitan area, Statistics Korea examined changes in industrial structure focusing on digital transformation and the deepening of digitalization by industry. Comparing the growth rates of the number of business establishments in the Seoul metropolitan area and non-metropolitan areas from 2006 to 2019 from the perspective of digital deepening, the Seoul metropolitan area showed the highest growth rate of 47.6% in industries with a high degree of digital deepening. In contrast, non-metropolitan areas showed the highest growth rate of 39.1% in industries classified as medium to low digital deepening.
The growth rate of the number of employees was also highest in industries with a high degree of digital deepening in the Seoul metropolitan area at 72.1%, while in non-metropolitan areas, industries with medium to low digital deepening had the highest growth rate at 62.8%.
Jung Kyu-seung, Director of the Economic Survey Division at the Southeast Regional Statistics Office, stated, "According to the analysis of industrial structure from the perspective of deepening digitalization, there has been a consistent concentration of the number of business establishments and employees in the Seoul metropolitan area, centered on highly digitalized industries. Various studies on companies classified under digital deepening industries are being conducted by organizations such as the Organisation for Economic Co-operation and Development (OECD), and accordingly, it is necessary to promote further research on South Korea's industrial structure through follow-up studies."
In the analysis of birth-related indicator characteristics and implications in regions with population decline, characteristics of areas where the total fertility rate (TFR) is high but the population is decreasing were identified. The total fertility rate is an indicator representing the average number of children a woman is expected to have during her lifetime. It is a representative indicator showing fertility levels by summing age-specific fertility rates. This analysis confirmed that despite high fertility rates, the population may not increase due to a higher number of deaths, and the number of births may be low because of a small population of women aged 15 to 49.
Additionally, the spring issue of Statistics Plus includes an analysis of factors affecting the flow of economic resources by life cycle and differences in life expectancy by gender, based on the National Transfer Accounts, one of the satellite accounts developed and published by Statistics Korea.
The publication can be accessed on the National Statistical Portal and the Statistics Development Institute website.
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