The Size, Effects, and Efficiency of Internet Economy in Korea

35 Pages Posted: 6 Aug 2012

See all articles by Ilsoon Shin

Ilsoon Shin

Inha University

Jungsoo Park

Sogang University

Seonghoon Jeon

affiliation not provided to SSRN

Date Written: June 30, 2012


This study is aimed at examining the quantitative size, effects, efficiency, and global status of Korea's Internet economy, and discussing market measures to maximize the benefits of Internet economy. The share of Internet economy in Korea is about 5.94% of GDP, and Korea was ranked among top five out of 20 surveyed countries in the size of Internet economy. The consumer surplus from the Internet in Korea is estimated to amount to at least 3.2 trillion won a year. Korea is ranked No. 1 among OECD countries in Internet Enablement and is ranked No. 2 among OECD countries in e-Intensity Index, which uses Internet Enablement, Engagement and Expenditure to measure the maturity of Internet economy. However, Korea's Internet economy still has room for improvement. The rate of Internet economy's contribution to national growth remained at 6% for the last 5 years, much lower than those of most mature countries. In accordance with e-Economic Efficiency Index, which is newly defined in this study to measure the efficiency of Internet economy, Korea is ranked low at 13th among OECD countries. Such bright and dark sides of Korea's Internet economy suggest the importance of improving Internet regulation environments, among many other things. The elementary level analysis of countries indicates that regulations are one of the major reasons affecting the low Internet's contribution to economic growth: The less rigorous the regulations, the higher Internet's contribution to economic growth and the higher values of e-Economy Efficiency Index.

Keywords: Internet economy, International comparison, Size, Effects, Efficiency

Suggested Citation

Shin, Ilsoon and Park, Jungsoo and Jeon, Seonghoon, The Size, Effects, and Efficiency of Internet Economy in Korea (June 30, 2012). International Telecommunications Policy Review, Vol. 19, No. 2, 2012. Available at SSRN:

Ilsoon Shin (Contact Author)

Inha University ( email )

253 Yonghyun-dong
Nam-gu Incheon 402-751, Incheon
Korea, Republic of (South Korea)

Jungsoo Park

Sogang University ( email )

35 Baekbeom-ro
Seoul, 121-742


Seonghoon Jeon

affiliation not provided to SSRN ( email )

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