The rise and development of the platform economy in South Korea

Abstract

Noting the growing importance of online platforms, this paper discusses the rise and development of the platform economy in Korea, defining platforms as a business model and arguing that the platform economy requires financing, an environment for Internet use and users, services, and content. Many believe that the platform economy's development is a natural outcome of technical innovation. However, the platform economy was created by the interplay of government and corporate strategies under certain historical conditions. In Korea, the platform economy developed after the 1997 Asian financial crisis. Presenting the IT industry and venture businesses as a solution to the crisis, the government helped finance venture companies through intensive investment and enhanced the strategy of building information and communication infrastructure. Platform companies suffered from the lack of content and services to provide; however, they quickly built web portal platforms with Korean specificities by copying and benchmarking personal computer communication services.