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This study is a theoretical inquiry into the term ‘digital literacy’, which has made its first appearance as a technical term in the 2022 revised curriculum in Korea. Although the term can be used casually, academically its use should be carefully considered in relation to the key competencies of the new curriculum that students are expected to develop. This study investigates the etymological origin and theoretical background of digital literacy, in order to grasp the practical meaning and to present possible applications of digital literacy in English language teaching. Digital literacy encompasses not only the ability to read and write within a digital context, but also the skills to find, interpret, evaluate information and to critically read and creatively process the information on the basis of firm ethical principles. It tends to be displayed in English classrooms by using a variety of digital tools like AI chatbots, virtual reality and metaverse. Teachers are strongly advised to continue improving their technological, pedagogical and content knowledge (TPACK) to promote students’ digital literacy in pursuit of communicative competence in English.