Minister Han Seung-sook of the Ministry of Small and Medium Enterprises and Startups held a press conference to commemorate the first anniversary of the government, reflecting on the achievements in small business and venture policies over the past year and outlining future priorities. She highlighted significant progress in promoting entrepreneurship while identifying the need for policy innovation in response to external crises as a key ongoing challenge.
During the press conference on the 28th at SVC Seoul, Minister Han expressed her commitment to continue supporting startup companies.
Since taking office, she has visited 152 locations and implemented 23 measures along with 78 improvements to laws and regulations. Minister Han identified four key themes of the ministry's achievements: 'Entrepreneurship' (Everyone's Startup), 'Growth' (TIPS), 'Leap' (Jump Up), and 'Second Chances and Safety Nets.'
Notably, the 'Everyone's Startup Project,' aimed at revitalizing the stagnant self-employed and venture ecosystem, attracted over 63,000 applicants, marking the largest participation in a government competition to date. Within just 37 days of its launch, the number of participants surpassed 20,000, indicating a nationwide surge in entrepreneurial interest. The initiative will continue with a second season, set to begin in July, expanding the selection from 5,000 to 10,000 participants.
To spread the entrepreneurial enthusiasm across the country, the government will designate regional startup cities. In the first half of this year, four cities—Daejeon, Daegu, Gwangju, and Ulsan—home to major science and technology institutions, will be prioritized for support across the entire startup cycle, from entrepreneurship to technology development, investment, and market access. An additional six cities will be selected by 2027 to expand this initiative nationwide.
The foundation for supporting entrepreneurship and stable recovery has also been established. The 'Startup One-Stop Support Center,' which opened in 19 regions last December, has quickly become a key resource, surpassing 10,000 consultations within five months. A 'Re-Challenge Fund' of 1 trillion won is planned to support struggling businesses in their recovery over the next five years.
Minister Han referenced the Lee Jae-myung administration's declaration of a 'National Startup Era,' stating, "Now is the time to plan with an eye toward 2045." She added, "We will create an environment conducive to becoming a startup nation over the next 20 years."
Small and medium enterprise exports also reached new heights, achieving a record $118.6 billion last year. In the first quarter of this year, exports continued to break records, marking the second consecutive year of peak performance. The K-beauty and online export sectors have also set new records, contributing to the expansion of export opportunities.
Additionally, the ministry is accelerating the establishment of a demand-driven delivery system. By reducing application paperwork by 50%, the administrative burden on businesses has been significantly decreased. The government has also launched initiatives such as 'Crisis Alert Talk' to proactively reach out to struggling small businesses and a 'Whistleblower System for Technology Theft' to enhance policy accessibility.
Furthermore, the ministry is set to launch the 'Small and Medium Enterprise Growth Platform,' consolidating 64 previously scattered policy platforms into one, with a pilot operation scheduled for June. This initiative aims to simplify the complex procedures of government support programs, which President Lee Jae-myung likened to a 'tangled mess,' into a user-friendly system that requires 'just one login' and features an 'AI virtual assistant.'
Minister Han stated, "The achievements of the past year are thanks to the small and medium enterprises and self-employed individuals who have not stopped challenging themselves on the ground, rather than the government. We will continue to run alongside them unwaveringly to ensure that their challenges lead to even greater results."
However, she acknowledged that despite these visible achievements, the ministry has struggled to implement 'substantial structural reforms' due to uncontrollable global crises. "With 1 million small business closures, the impact of U.S. tariffs, and conflicts in the Middle East, various situations beyond the ministry's control are affecting small and medium enterprises overall," she said. "In this critical period requiring a reorganization of supply chains, we have not been able to focus on how to innovate policies effectively."
In response to questions from reporters regarding wage disparities and labor shortages between large and small enterprises, she emphasized the need for a social consensus and the creation of a new compensation system, stating, "We must strengthen support to secure quality research talent within small and medium enterprises."
* This article has been translated by AI.
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