On the 28th, Minister Han Seong-suk of the Ministry of Small and Medium Enterprises and Startups held her first press briefing since taking office and stated that "building safety nets for small business owners and small and medium enterprises is an urgent task" and that "we will reinforce the policy aspects to allow for a comeback after business closure." She also gave a positive evaluation of the consumption promotion policies implemented by her ministry.
Minister Han explained her activities and policy direction for the first 30 days since taking office during a meeting with reporters at the Korea Federation of Small and Medium Enterprises in Yeongdeungpo-gu, Seoul, that morning. She mentioned "building a safety net for small business owners and social disaster recovery" as her first topic.
Minister Han said, "The shock of the number of 1 million business closures prompted me to state my intention to build a safety net when I took office," adding, "We will focus on creating a vibrant commercial district by establishing safety nets for livelihoods and creating a win-win corporate environment in line with that."
The Ministry of Small and Medium Enterprises and Startups has prepared specific plans, including employment insurance premium support and linkage to comeback support, aimed at self-employed individuals. It also presented a blueprint to resolve the low employment insurance subscription rates by forming a policy consultative body with relevant ministries, including the Ministry of Employment and Labor.
We will also promote insurance-linked support, tax burden reduction, an increase in the payment limit, and expansion of enrollment incentives aimed at reinforcing the safety net functions of the Yellow Umbrella Fund. We will guide and link projects that support individuals from business closure to employment and re-establishment.
Minister Han mentioned, "Establishing a foundation for small business owners to recover is an important task" and noted that "this is applicable to startups, venture businesses, and small and medium enterprises alike."
Regarding the consumption promotion projects carried out by her ministry, she evaluated that "the necessary budget has been executed." The Ministry of Small and Medium Enterprises and Startups will implement projects such as 'win-win payback,' which refunds 20% of the increase in card usage from September to November compared to the average of the previous year, as well as consumption lottery and special refunds of digital gift certificates.
Minister Han stated, "I agree with the saying that the economy is psychological, and there needs to be a mood that suggests it's okay to spend money."
Adding to her statement, she said, "According to data from credit rating agencies, the consumption coupons intended for business sites with annual revenues of less than 3 billion won have also shown (consumption stimulation) effects for businesses with annual revenues exceeding 3 billion won." She noted that "the consumer sentiment index has reached its highest point in seven years, reflecting an improvement in consumption sentiment."
The recently passed "Yellow Envelope Law" (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act) was also mentioned.
After the amendment was passed, the six subsidiaries of Naver, where Minister Han formerly served as CEO, recently blamed Naver, the head office, for the breakdown in wage and collective negotiations and demanded the resolution of pay and welfare gaps between their companies and the head office. They argue that Naver, which holds a majority of the subsidiary equities, is the "real boss."
Minister Han emphasized, "The Ministry of Employment and Labor plans to listen to each perspective and develop specific policies during the six-month grace period, and the Ministry of Small and Medium Enterprises and Startups will also express its views in line with that." She added, "I believe there will inevitably be confusion in the early stages, and detailed matters must be discussed over the six months to avoid any interpretative ambiguity."
At the press conference that day, Minister Han repeatedly mentioned the importance of platforms and data, based on her long experience working in IT companies like Naver.
She explained, "The integrated platform for small and medium enterprises is securing its budget and is progressing by integrating artificial intelligence technology that we can utilize to make it user-friendly, and it will become a good platform if linked with the 'Public MyData' operated by the Ministry of the Interior and Safety."
Furthermore, she said, "It is difficult to define the boundary between small business owners and small and medium enterprises, and we will consider what appropriate tools can be used to accurately build policy data for those classified as small business owners and inform them of the policies."