Lee So-young, the nominee for Minister of SMEs and Startups, presented her policy plans on regulatory reform, labor market flexibility, and alleviating the financial burden on small businesses during a confirmation hearing on September 15.
Opening Remarks: "I Will Be a Minister for Regulatory Reform"
In her opening remarks, Lee stated, "I will open a 'national startup era' where everyone can challenge and grow," expressing her commitment to finding solutions from the perspective of businesses and citizens if unreasonable regulations hinder new challenges. She emphasized, "If necessary, I will persuade ministers from other departments to lift regulations." Lee also promised to restore and revitalize the KOSDAQ market, a vital funding source for SMEs and startups. "If I become minister, I will not only support small businesses and startups facing immediate difficulties but also prepare for the future together to ensure they do not fall behind in the changing times," she said.
Consulting Fees of 70 Million Won: "Cannot Disclose Specific Identities"
Rep. Choi Soo-jin of the People Power Party raised concerns about Lee's payments totaling over 70 million won to a consulting firm from September 2023 to April 2025, with monthly fees ranging from 3.3 million to 11 million won. The firm reportedly has a vacant registered address. Lee explained that the payments were for consulting related to election preparations but did not disclose specific identities, stating that the registered representative and the actual consultant were different individuals.
Allegations of Real Estate 'Gap Investment' and Late Gift Tax Payment
The real estate controversy revolved around two issues. One was the 'gap investment' allegation concerning an apartment in Hongje-dong. Lee purchased the apartment for 490 million won in 2016 and lived there for about four years before moving to Gyeonggi Province to run for the National Assembly in 2020. Rep. Choi claimed that a similar apartment in the same complex sold for 1.19 billion won in July, resulting in a 'book profit' of about 700 million won over ten years, suggesting it was a 'gap investment rental.' Lee countered, stating, "The facts differ from the definition of gap investment" and asserted that she had not realized any capital gains.
The second issue involved a gift tax related to a financial transaction between family members. Lee's spouse reportedly lent over 220 million won interest-free to her mother in 2022 for a security deposit. Lee explained, "I was not aware of it beforehand. I considered it support for living expenses under Article 46 of the Inheritance and Gift Tax Act," but confirmed that she reported and paid a gift tax of 1.65 million won on the 11th.
Zero Legislative Proposals Related to the Ministry of SMEs
Rep. Choi pointed out that among Lee's legislative proposals during the 21st and 22nd National Assembly (51 and 36 proposals, respectively), there were no legislative achievements related to eight key laws under the Ministry of SMEs, including the Basic Law for Small Enterprises and the Basic Law for Small Business Owners. Lee responded, "I believe that a high quantity of legislative proposals does not necessarily equate to diligent legislative activity."
Choi further criticized Lee for proposing a bill to classify nitrogen trifluoride (NF3), essential for semiconductor and display processes, as a greenhouse gas last September, calling it an excessive regulation. Lee defended her action, stating it was necessary for proactive verification in response to international carbon trade regulations.
Surge in Donations to Climate Solutions Raises Concerns
Rep. Yoon Han-hong of the People Power Party highlighted the significant increase in donations to the environmental organization 'Climate Solutions,' co-founded by Lee, from 1.8 million won in 2017 to 17.87 billion won in 2025. He raised suspicions of policy lobbying based on her history of co-hosting 15 discussions with the organization while serving as a lawmaker. Lee responded, "Since resigning from the board in January 2020, I have only engaged in policy exchanges and cannot know all specific activities," disputing claims of contracted legislation for specific organizations.
"Rigid Regulations on 52-Hour Workweek Are Inappropriate"
During policy inquiries, Lee's comments on labor hour regulations drew significant attention. She stated that the current penalty of up to two years in prison for violating the 52-hour workweek does not align with today's diverse work structures. She argued, "Unlike past factory-based labor, knowledge work is often evaluated based on outcomes rather than hours." However, she acknowledged the issues of long working hours and overwork, agreeing that reducing working hours is necessary for worker health while also mentioning the need for flexibility in the comprehensive wage system.
"Delivery App Fees Should Be Used Efficiently"
Rep. Song Jae-bong of the Democratic Party questioned the high fees charged by large platforms like Coupang, which burden small businesses, and asked about corrective measures through cooperative delivery apps. Lee acknowledged that fees from not only Coupang but also other open markets and delivery apps are burdensome for small businesses. She proposed strengthening public delivery app competitiveness alongside private platform regulations and information disclosure, reaffirming the need to reform the existing coupon system into a more efficient model.
Questions on Technology Theft, Overseas Expansion, and Capital Region Concentration
Regarding overseas expansion, Rep. Lee An-joo of the Democratic Party called for a one-stop support system designed from the startup stage for global business. Lee expressed agreement with the strategy of accompanying large enterprises in their overseas ventures and announced plans to establish new overseas bases within the Ministry of SMEs to complement KOTRA's functions. In response to Rep. Park Hee-seung's suggestion to utilize the Korean-American network, she admitted, "There are no such connections. I will look into it," acknowledging the lack of concrete plans.
On the issue of technology theft, Rep. Park pointed out that the Ministry of SMEs lacks statistics on damage, including 59 cases of dispute resolution. Lee stated, "I will identify the scope of lower regulations and report it during the National Assembly audit," and announced plans to allocate 50% of support to non-capital regions starting next year to address the concentration of venture startups in the capital area.
* This article has been translated by AI.
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