The Ministry of SMEs and Startups said it held the "2026 first-half proactive administration best practices competition" and selected 15 cases that resolved on-site issues for small and midsize companies and small merchants.
The Ministry of SMEs and Startups (MSS) headquarters, regional SMEs and Startups offices, and affiliated public institutions submitted 40 cases, and through preliminary and final evaluations, 2 best, 3 excellent, and 10 commendation cases were chosen.
The best-practice selection included "comprehensive overhaul of standard venture investment contracts by the public and private sectors together." The Ministry of SMEs and Startups (MSS) formed a forum with the investment industry, startups, and legal experts to improve unfair contract issues arising from bargaining-power disparities between startups and investors.
Reflecting on-site input, it separated stock purchase agreements (SPA) and shareholders' agreements (SHA) and prepared a standard plan centered on convertible preferred shares (CPS). It also improved the conversion price re-fixing clause, initial public offering (IPO) provisions, and the scope of third-party joint liability, and reflected them in the "standard venture investment contract and commentary."
Another best-practice case is "overcoming management difficulties of plastic-processing small and midsize companies triggered in the Middle East through win-win cooperation." When plastic raw material prices surged due to uncertainty in the Middle East, the Ministry of SMEs and Startups (MSS) led the signing of a win-win cooperation agreement in April by consolidation of large corporations, franchise industries, and related associations and groups.
CJ CheilJedang(097950) and 대상, Nongshim(004370), Lotte Chilsung Beverage(005300), LG H&H(051900), and seven other large and mid-tier corporations participated, for a total of nine. As a result, they raised the supply prices of 394 partner companies by about 20 billion won and made early payments of about 14.97 billion won in supply settlements. It is a case where the government prepared solutions through public-private cooperation for small and midsize companies facing crises due to unexpected external environmental changes.
The Ministry of SMEs and Startups (MSS) plans to provide incentives such as bonuses to outstanding departments and officials and use the selected cases in similar policies and tasks.
Lee Sun-bae, Director General for Policy Planning at the Ministry of SMEs and Startups (MSS), said, "We will continue to encourage proactive administration so that small and midsize companies and small merchants can feel changes on the ground, and build a public service culture where employees who take the lead in tackling difficult problems and finding solutions are properly evaluated and rewarded."