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Abstract: While different conceptions of the digital economy exist, there is a common ground where discussion on digital economy can be fostered. Taking the notion that digital economy as a continuum from the existing old economy, this paper regards the manufacturing sector of the digital equipment as the digital infrastructure. Upon this, this research attempts to analyze the supply and demand side development patterns of the infrastructure of the digital economy in Korea between 1989 and 2000 with the Bank of Korea''s data in order to present the dynamic that brought the growth of digital economy. Research findings show that there has been an unique mechanism in the development of IT sector in Korea, while policy measures have been broadly identical to the promotion of other sectors. [Copyright &y& Elsevier]