Since Han Seong-sook transitioned to the role of Prime Minister, the appointment of a new Minister for the Ministry of SMEs and Startups has been delayed for over a month, raising concerns about a policy gap. With small and medium enterprises (SMEs) and small business owners struggling amid high inflation and sluggish domestic demand, the absence of a policy leader is hindering initiatives like the normalization of the Everyone's Startup program and appointments within affiliated agencies.
According to government sources on July 25, the Ministry has been operating without a minister for nearly six weeks since Han was nominated as Prime Minister on June 7. Although First Vice Minister Noh Yong-seok is currently acting in the minister's role, the announcement of a successor has yet to be made.
The prolonged absence of a minister is causing delays in addressing significant issues. The Ministry's key initiative, the Everyone's Startup project, has seen its second recruitment phase postponed indefinitely following a data breach incident involving participants from the first phase, which was originally scheduled for July.
Support for SMEs and small business owners, who are facing dire circumstances due to high interest rates and inflation, as well as policies for AI transition, venture investment recovery, and global expansion, are not being expedited.
Moreover, the impact of the ministerial vacancy is cascading down to affiliated agencies. The term of Lee Tae-sik, head of the Korea SMEs and Startups Agency, has already ended, and next month, the terms of Kang Seok-jin, head of the Korea Small Business Corporation, and Kim Young-shin, head of the Korea Technology and Information Promotion Agency for SMEs, will also expire.
Typically, the appointment of heads of affiliated agencies requires a recommendation from the relevant minister, which means the absence of a minister is leading to stagnation in these appointments.
Additionally, there is a possibility that the presidential work report scheduled for early next month will be conducted without a minister, with the acting vice minister stepping in.
Currently, various candidates for the next minister are being discussed in government and political circles, ranging from politicians to academics and private sector leaders. However, given the current economic challenges and global uncertainties, there is a growing call for a qualified individual with a deep understanding of the SME and startup sectors, as well as the expertise and drive to foster growth.
An industry insider stated, "We need to quickly appoint a hands-on candidate who understands the field and can lead policies with urgency, beyond political calculations or delays in verification."
* This article has been translated by AI.
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