Venture capital (VC), small-business groups, and technology-innovation SMEs welcomed the nomination of Lee So-young of the Democratic Party of Korea as candidate for Minister of the Ministry of SMEs and Startups. They called for policies that support not only revitalizing venture investment and stabilizing small-business operations but also scaling up SMEs and fostering technological innovation.
The Korea Venture Capital Association (VC association) issued a statement on the 30th, saying, "We sincerely welcome, along with the venture capital industry, the nomination of Rep. Lee So-young as the new Ministry of SMEs and Startups (MSS) Minister candidate."
The VC association highly rated that the candidate has been active in the Trade. Industry Energy. SMEs. and Startups Committee and the startup study group "Unicorn Farm," and has taken an active lead in legislation for regulatory innovation in new industries and for fostering ventures and startups.
The association said, "The candidate, who has listened to voices on the ground and has a deep understanding of the challenges in the innovation ecosystem, is the right person to lead support for the Ministry of SMEs and Startups (MSS) and the domestic venture ecosystem," adding, "We expect new momentum for the venture investment market."
The VC association asked for measures to boost the inflow of private capital into the venture investment market and to improve regulations that hinder the growth of domestic VCs. It also stressed the need to vitalize exit markets such as initial public offerings (IPOs) and mergers and acquisitions (M&A) to create a virtuous cycle in which venture investment funds flow back into innovative corporations.
The small-business sector also welcomed the nomination.
The Korea Federation of Micro Enterprise (KFME) said in a commentary the same day, "With former Ministry of SMEs and Startups (MSS) Minister Han Seong-sook taking office as prime minister, a path has opened to end the roughly two-month vacancy in the ministerial post," adding, "We expect to secure continuity in small-business policy and speed up solutions to the many pending issues."
The KFME highly rated that the candidate has continuously handled small-business issues, including urging an expansion of Hope Recovery Funds for small businesses hit by COVID-19 and making support programs for closed small businesses more realistic.
The KFME explained that small-business sites are facing complex difficulties as prolonged sluggish domestic demand, high inflation and high interest rates, and burdens from labor costs and various expense are compounded by changes in distribution and platform environments and labor policies.
The KFME said, "Policy should start with voices from the field, and practical measures that small businesses can feel should be pushed quickly," calling for management stability, a stronger social safety net, and the creation of a fair business environment.
The INNOBIZ Association, which represents technology-innovation SMEs, also welcomed the nomination.
The INNOBIZ Association said, "The selection of the candidate will serve as a catalyst to inject new vitality into the manufacturing and technology innovation ecosystem."
The association assessed the candidate as a policy expert who has taken the lead in removing on-site bottlenecks such as a sustainable industrial transition, expansion of artificial intelligence (AI) infrastructure, and improvements to regulations for new industries.
It stressed the need to restore the growth ladder from startup to venture, innovation-driven SME, and mid-sized company, and to advance the research and development (R&D) ecosystem. It also asked to move away from simple subsidies-type support and build a scale-up support system that enables innovative companies to grow into mid-sized companies.
It added that tailored infrastructure support and regulatory improvements should be pursued so that traditional manufacturing can use AI and data to boost productivity and create new added value, and that support for the overseas expansion of technology-innovation SMEs should also be expanded.