Seoul: South Korea's digital industry expanded 10.5 percent in 2023 from a year earlier amid local businesses' adoption of cloud computing, big data, and artificial intelligence (AI) technologies, government data showed Thursday. Sales of the country's digital industry were estimated at 1,261 trillion won (US$906 billion) in 2023, compared with 1,141 trillion won tallied in 2022.

According to Yonhap News Agency, the figure accounted for 14.5 percent of the country's total industrial output in 2023. The Ministry of Science and ICT noted that the 2023 tally represented more than half of that of the conventional manufacturing sector, which posted sales of 2,422 trillion won for the year. This indicates that the digital industry is gradually emerging as the country's new growth engine.

South Korea's digital industry employed 2.02 million people, accounting for 7.9 percent of the country's total workforce in 2023. From 2021 to 2023, the data showed 35.4 percent of digital companies adopted cloud computing technology, with 24.3 percent and 22.4 percent harnessing big data and AI solutions, respectively.

An official from the ministry stated the importance of creating a virtuous cycle by seeking innovation and improved productivity through AI and digital transformation. The government plans to further accelerate the AI transformation based on South Korean companies' high interest in AI technologies.