The Ministry of SMEs and Startups has resumed the second phase of the 'Everyone's Startup' initiative, which was halted due to a data breach, while enhancing security measures. However, concerns have been raised that the initiative has only expanded in scale without replacing the existing artificial intelligence (AI) solution developer responsible for the breach.
On August 13, the ministry announced that instead of changing the development company, it would establish a new collaboration system with three organizations to bolster security. Specifically, a specialized firm will be tasked with continuous security monitoring, and any new feature developments or changes will undergo security assessments by this firm. Additionally, response training for breach incidents and technical consulting will be conducted with the cooperation of the National Intelligence Service.
However, the ministry decided not to review the contract with the developer implicated in the breach. The lack of prior verification of the outsourced AI solution provider was identified as the cause of the breach, yet the focus of the resumption plan remains on adding monitoring systems.
The process of determining accountability has also been postponed until after the initiative resumes. A ministry official stated, "Right now, stabilizing the project is more important than punishing those responsible," adding that the police investigation is expected to take longer, and decisions on penalties will be made after its completion. This means the project is resuming without clarity on the circumstances of the breach or accountability.
The official further explained that since last month, the ministry has been holding meetings with the selected participants of the first round of the initiative across 17 cities and provinces, and there has been significant demand from the field to continue the project.
Timing is also a contentious issue. The second phase is funded through a supplementary budget, which must be executed within the fiscal year. Consequently, the ministry aims to resume applications in mid-August and complete the project by December. Concerns have been raised in the National Assembly during the budget review process about whether the project is being expanded without sufficient detail, potentially leading to rushed implementation without adequate security measures.
Another point of concern is that the decision to resume and expand the project was made while the ministerial position remains vacant. Han Seong-sook, who was the minister during the first phase of the initiative, was appointed as the Prime Minister in July, and a successor has yet to be named. Currently, No Yong-seok, the first vice minister, is acting as the minister.
Experts have also pointed out issues with the performance criteria of the Everyone's Startup policy, suggesting it is overly focused on simply increasing the number of startups. Kim Dae-jong, a professor at Sejong University, noted, "While Everyone's Startup 2 is significant in lowering barriers to entry for young and prospective entrepreneurs, merely providing startup funds will not create a sustainable startup ecosystem."
He emphasized, "The biggest problem is the potential focus on increasing the 'number of startups' as a measure of success, and it is crucial to strengthen follow-up support and management systems to ensure that funded companies can generate actual revenue, create jobs, and survive in the market."
* This article has been translated by AI.
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