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Promoting the Digital Transformation of Industry Strategies for Strengthening the Competitiveness of Seoul Economy

Byeong-Sun, Jeong·Hyun-Chul Jung

With the advent of the Fourth Industrial Revolution around 2010 and the Corona pandemic that arrived in January 2020, the global economy has set the stage for a rapid transition to the digital economy. New digital technologies such as artificial intelligence, big data, and the Internet of Things are leading the fourth industrial revolution, and based on these technologies, the global industrial economy is seeking to transform.
The digital transformation means the process of strategically converting a company's business using digital (transition) technology in this report. Digital transformation is important not just to introduce new technologies to the company, but to strategically transform the company's business centered on customers and increase the value of the enterprise.
South Korea is also actively engaged in digital transformation in terms of the national economy and the local economy, and is expanding its presence to digital transformation across the industry through smart manufacturing and factories in the early stages. In line with this change in the economic environment and the structural shift of the industrial economy, the government has recently been seeking an active response to industrial policy and institutional support. Considering the recent diversification of the global economy and the domestic industrial economy through digital transformation, strategic measures are needed to promote the digital transformation of the Seoul industry at the level of the Seoul economy in large cities.
Despite global trends surrounding the digital transformation of the industry and the rapid adaptation of leading companies and conglomerates, the interests and responses of many companies, especially small and medium-sized enterprises and small business owners, are passive. Another noteworthy point is that the conversion capacity of companies, which are key elements in implementing digital transformation, is generally low. It should also be considered that companies are experiencing various difficulties in the digital transformation process.
The digital transformation of the industry is a trend that cannot be countered. Therefore, the Seoul economy also needs to prepare for the industrial digital transformation, and policy support measures related to this are needed. The support plan should take into account the reality of the Seoul economy, which forms the integration and center of the knowledge service industry with a large number of small and medium-sized enterprises. In addition, various measures should be sought to strengthen dynamic capabilities for small and medium-sized enterprises with relatively insufficient capabilities. It is also necessary for the industry to create an industrial environment in which digital technology-based startups are activated along with promoting digital transformation.