Minister Han Seung-sook of the Ministry of SMEs 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 startup activation while also emphasizing the need for policy innovation in response to external crises.
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. She identified four key themes for the ministry's achievements: 'Startup' (Everyone's Startup), 'Growth' (TIPS), 'Leap' (Jump Up), and 'Re-challenge and Safety Nets.'
Notably, the 'Everyone's Startup Project' has injected vitality into the stagnant self-employed and venture ecosystem, attracting over 63,000 applicants, marking the largest scale in government competitions to date. Within just 37 days of its launch, participation surpassed 20,000, confirming a nationwide startup boom. 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 startup enthusiasm nationwide, the government will designate regional startup cities. In the first half of this year, Daejeon, Daegu, Gwangju, and Ulsan—home to four major science and technology institutes—will be prioritized, receiving comprehensive support from startup to technology development, investment, and market access. An additional six cities will be selected by 2027 to broaden this initiative.
A foundation has also been established to support startup activation and stable re-challenges. The 'Startup One-Stop Support Center,' which opened in December last year across 19 regions, has quickly become a key resource, surpassing 10,000 consultations within five months. A 'Re-challenge Fund' worth 1 trillion won will be established over the next five years to support struggling businesses in their recovery.
Minister Han referenced the Lee Jae-myung administration's declaration of a 'Startup Nation 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-sized enterprise (SME) exports have also reached new heights. Last year, SME exports totaled $118.6 billion, achieving a record high, and the first quarter of this year has already seen another record-breaking performance, marking two consecutive years of peak results. The K-beauty and online export sectors have consistently 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 documents by 50%, the administrative burden on businesses has been significantly alleviated. The government has also launched the 'Crisis Alert Talk' and 'Technology Theft Prevention Reporting System' in March to enhance policy accessibility for struggling small businesses.
Furthermore, the ministry is set to launch the 'SME Growth Platform,' consolidating 64 previously scattered policy platforms into one, with a pilot operation scheduled for June. President Lee Jae-myung has likened the previously complex government support procedures to a 'tangled mess,' and the new system aims to innovate through a single login and AI virtual assistant, laying the groundwork for public access.
Minister Han stated, "The achievements of the past year are thanks to the small businesses and self-employed individuals who have not stopped challenging themselves in the field, not the government. We will continue to work steadfastly alongside them 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 megatrends.
Minister Han noted, "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 businesses overall. We have not been able to focus on how to innovate policies during this critical period requiring supply chain restructuring."
When asked about solutions to the wage gap and labor shortages between large and small enterprises, she responded, "A social consensus must be formed, and a new compensation system needs to be established. We must strengthen support to secure quality research personnel within small businesses."
* This article has been translated by AI.
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