The small and medium-sized enterprise (SME) and small business sectors welcomed the appointment of Lee So-young as the new Minister of SMEs and Startups, expressing hopes for solutions to pressing issues such as alleviating the management burdens on small businesses, facilitating the AI transition for SMEs, and revitalizing the venture capital market.
On September 23, the Korea Federation of SMEs issued a statement saying, "We expect Minister Lee to take the lead in helping small businesses and the self-employed overcome the complex challenges posed by high interest rates, rising prices, and delays in domestic recovery, allowing them to become key players in driving economic growth."
The federation urged the government to clarify the role of SMEs in the national growth strategy and to work on improving the cost structure for small businesses to combat the 'K-shaped polarization.' They emphasized the need for focused policy efforts on the AI transition and digital innovation for SMEs, given the potential widening gap between large and small enterprises due to AI proliferation.
The Korea Small Business Association called for fundamental measures to break the vicious cycle of 'many births and many deaths' in the small business sector. They suggested regular communication with small business owners to reduce the social capital loss caused by approximately 1 million business closures each year.
Key issues highlighted included developing strategies to overcome the crisis in local commercial districts, alleviating the high cost burdens on small businesses, establishing social safety nets, creating a cooperative ecosystem with online platforms like delivery and commerce, and supporting digital transformation.
The Korea Venture Business Association expressed high expectations for Minister Lee's commitment to achieving reforms that go beyond simple regulatory improvements, stating, "It is crucial to address urgent policy challenges that hinder the challenges and growth of innovative companies."
The Korea Women Entrepreneurs Association requested policies that can be felt by women-owned businesses, focusing on revitalizing the female entrepreneurship ecosystem, expanding market access, and increasing investment. They expressed hope that Minister Lee's national experience and communication skills would lead to the implementation of relevant policies.
The Korea Venture Capital Association urged the government to prioritize the activation of the exit market as a key policy for the global leap of the venture ecosystem. They called for expanding participation from large institutional investors in the KOSDAQ and creating a foundation for increased private capital involvement in venture funding.
* This article has been translated by AI.
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