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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 39, No. 3, pp.209-232
ISSN: 1225-0279 (Print)
Print publication date 30 Sep 2026
Received 04 Feb 2026 Revised 08 Sep 2026 Accepted 09 Sep 2026
DOI: https://doi.org/10.22904/sje.2026.39.3.001

Do Intangible Assets Still Matter for Firm Performance? Evidence from Korean Firm-Level Data

Nyeong Seon Son
Nyeong Seon Son, Research Fellow, Department of Digital Policy Research, Korea Information Society Development Institute, 18, Jeongtong-ro, Deoksan-eup, Jincheon-gun, Chungcheongbuk-do, 27872, Republic of Korea, Tel: +82-43-531-4180 nsson@kisdi.re.kr

JEL Classification: E22, D24, O47

Abstract

As digital transformation accelerates, intangible assets have become increasingly important. In Korea, however, their accumulation has decelerated since the mid-2010s. This study examines whether this trend reflects a weakening link between intangible investment and firm growth. Using firm-level data, we find that even during the period of decelerated accumulation, intangible investment continues to improve sales and labor productivity and increase firms’ participation in export markets. These results suggest that the deceleration in intangible asset accumulation in Korea does not stem from diminishing returns to intangible investment.

Keywords:

Intangible Assets, Firm Growth, Digital Transformation

Acknowledgments

The author would like to thank the editor and an anonymous referee for their helpful comments and suggestions, which significantly improved the paper.

This paper expands and complements the content of Chapter 4, “The Status of Korean Firms’ Intangible Assets and the Impact of Intangible Assets on Firm Performance,” from Investment in Intangible Assets and Economic Growth: Global Trends and Policy Implications (KIEP Policy Analyses 24-07). All results have been reviewed and approved to ensure that no confidential information is disclosed.

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