SME sector hails Han Sung-sook as 'right person' to lead AI transition

South Korea's small and medium-sized enterprise sector has welcomed the appointment of Han Sung-sook as the new prime minister, saying her experience as chief executive of Naver and as minister of SMEs and Startups makes her the right person to guide small businesses and self-employed operators through the AI and digital transition.

The Korea Federation of Small and Medium Business issued a statement Wednesday saying it "sincerely welcomes" the appointment of former Ministry of SMEs and Startups Minister Han as the Lee Jae Myung government's second prime minister.

President Lee Jae Myung presented Han with her appointment certificate at Cheong Wa Dae on Wednesday. Han officially began her term after the National Assembly passed her confirmation motion Tuesday. She previously served as chief executive of Naver before becoming the Lee government's inaugural SMEs and Startups minister. Her appointment makes her only the second woman to serve as prime minister in 20 years, following former Prime Minister Han Myeong-sook in 2006.

The SME sector is pinning its hopes on Han's combination of private-sector IT management experience and her track record running SME policy as minister. "Prime Minister Han Sung-sook, drawing on her experience managing IT companies including Naver and driving small business policy as minister of SMEs and Startups, is the right person to lead small and medium-sized enterprises and self-employed operators through the AI and digital transition and innovation-driven growth at this pivotal moment of industrial transformation," the federation said.

Small businesses and self-employed operators are under mounting pressure from sluggish domestic demand, a high exchange rate, elevated prices and labor shortages. The SME sector said revitalizing small businesses must come first if South Korea is to overcome the "K-shaped polarization" concentrated among a handful of large conglomerates and move toward growth that benefits everyone.

Han's key challenge will be coordinating policy across ministries. Spreading AI adoption and driving digital transformation cannot be solved by the Ministry of SMEs and Startups alone. Issues including manufacturing productivity, operational efficiency for self-employed businesses, workforce retraining, platform coexistence, policy financing and export support all cut across the Ministry of Trade, Industry and Energy, the Ministry of Employment and Labor, the Ministry of Economy and Finance, and the Ministry of Science and ICT.

The SME sector said it hopes Han will "use the field-oriented communication and execution she demonstrated as SMEs and Startups minister to smoothly coordinate policy across ministries and ensure the voices of small businesses and self-employed operators are reflected throughout national governance."