Rent, interest, delivery app fees to be tracked as management burden indicators; existing policy effectiveness to be reviewed
Public delivery app competitiveness, self-employed social safety net expansion on agenda
Regulation reform, Kosdaq trust restoration, AI transition and carbon response support for SMEs
Lee So-young, nominee for minister of SMEs and Startups, said Tuesday she would draw up a "cost-structure improvement roadmap" to reduce the financial burden on small business owners, targeting expenses such as online food delivery app fees, rent and interest costs. She also said she would spell out the role of small and medium-sized enterprises in the government's three major mega-projects, which are set to receive around 800 trillion won ($595 billion) in total investment.
Lee made the pledge in her opening statement at a confirmation hearing before the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee on Tuesday. "I will systematically track the management burden on self-employed business owners as measurable indicators and draw up a cost-structure improvement roadmap to bring those costs down in a meaningful way," she said.
She said small business owners are struggling under a combination of high interest rates, high inflation, rent, interest payments, online food delivery app fees, advertising costs and delivery charges. "Simply keeping them afloat with subsidies is not enough," she said. "We need to build a structure where running a business leaves something behind, where effort leads to growth, and where failure is not the end."
Lee said she would also review the effectiveness of existing small business support policies. On public delivery apps, she said she would "create new competitiveness and alternatives so that consumers actually choose to use them." Her opening statement, however, did not specify a target level for fee reductions, a concrete implementation approach or a timeline for completing the roadmap.
Expanding the social safety net for the self-employed was also listed as a priority. She outlined plans to broaden support for healthcare costs, industrial accident insurance and employment insurance, and to overhaul policies for business closures and second-chance programs.
For the broader SME and venture sector, Lee said her policy direction would focus on streamlining regulation and restoring confidence in the capital market. She said she would seek solutions to regulations blocking new business challenges regardless of which ministry has jurisdiction, and would personally persuade other ministers when necessary.
"I will identify roles for small and medium-sized enterprises in large-scale national projects and turn the AI transition and carbon response into new growth opportunities," Lee said. She added that the role of SMEs and venture companies in the three major growth projects must be made more concrete and explicit.
On the Kosdaq market, Lee described it as a key funding channel for SME growth and an exit market for venture investment. "I will restore the trust that Kosdaq has lost and build a market that attracts fresh capital," she said, adding that she would not treat it as solely the Financial Services Commission's domain but would actively convey the SME sector's perspective.
Lee also said she would ensure the role of SMEs and venture companies is specifically reflected in the national growth strategy from the planning stage — covering the three mega-projects, the seven SEED initiatives and the five-pole, three-special growth engine strategy. She said she would define the areas of participation and the support and special provisions needed for SMEs in the semiconductor, AI data center and physical AI sectors.
She added that she would support AI adoption and smart factory upgrades at small manufacturing sites, and would expand institutional reforms, carbon-reduction equipment transitions and research and development support to help businesses respond to global carbon regulations and expanded ESG disclosure requirements.
"It is the government's responsibility to create an environment where innovation can be attempted and a structure where effort is rewarded," Lee said. "I will communicate with small businesses, venture companies and self-employed owners, and actively reflect the committee members' insights in policy."
hong@heraldcorp.com
