With People Power Party candidate Oh Se-hoon elected again as Seoul mayor, the startup industry is expressing expectations for policy continuity.
Among small business owners, attention is focused on the detailed implementation plans and timeline for the campaign pledges by Mayor Oh to expand financial support and back digital transformation.
According to the startup industry on the 4th, with Mayor Oh's victory increasing policy predictability, there is an outlook that continuity in startup support programs and policies to foster the startup ecosystem will strengthen.
When an administration changes, the direction of existing programs or the size of their budgets is often adjusted or even scrapped. With Mayor Oh's win confirmed, there is a growing likelihood that initiatives pursued before will continue as planned, which is expected to help in establishing mid- to long-term business plans.
In the industry, there is a sense of relief that there will be no major changes to startup support programs promoted by the Seoul Metropolitan Government, such as Smart Life Week (SLW). SLW is an artificial intelligence (AI) and smart city event the city has held since 2024.
Mayor Oh presented a plan to expand and develop this as a platform that supports Seoul startups in attracting investment, advancing overseas, and networking. This year, more than 500 corporations and over 70,000 people are expected to participate.
Another focal point for the industry is the follow-up management direction of the Seoul Vision 2030 Fund, which is being created at a total scale of 5 trillion won from 2023 through this year. It is being formed to invest in venture and startup companies in new industries such as artificial intelligence (AI), bio, and advanced manufacturing. If, with Mayor Oh's reelection, the fund formation and investment execution proceed as originally planned, the uncertainty in the startup investment ecosystem is expected to ease somewhat.
A startup industry official said, "From the standpoint of running a company, what matters more than any particular individual is that policy programs continue steadily," adding, "Because startups take a long time from attracting investment to commercialization to overseas expansion, frequent policy changes inevitably increase the burden of response for corporations."
Small business circles are watching whether Mayor Oh will carry out the pledges he put forward during the campaign. Recently, the business environment for small business owners has been tough. In the first quarter of this year, the nonperforming loan ratio for individual business loans at the four major commercial banks rose, and the overall loan arrears rate across the banking sector also climbed. That means financial burdens on small business owners have increased. With financing conditions deteriorating, there is an assessment that the effectiveness of financial support policies has become more important than ever.
Mayor Oh pledged to supply 3 trillion won in policy funds and extend the maturity of the 300 billion won Hope Companion funds that allow refinancing of high-interest loans into low-interest ones. He also said he would strengthen support for digital transformation, including online sales, social media (SNS) marketing, and building shopping malls. He further indicated a plan to build an early-detection system for at-risk small business owners and expand closure support and re-startup support, providing assistance across the entire life cycle of small businesses.
An official at the Korea Federation of Micro Enterprise (KFME) noted, "Because expanding policy funds and supporting digital transformation are policies needed by small business owners, the key is how quickly the pledges are fleshed out and executed on the ground."
The official added, "If policies to expand support for small business owners and foster the startup ecosystem proceed as planned, it will help reduce financing burdens and strengthen the foundation for growth," and said, "Execution speed must be increased so the field can feel the impact, and it must lead to a tangible easing of operational burdens."