[People人] '1 Year in Office' Park Young-sun... The Power of Connection in Overcoming COVID-19

Minister of SMEs and Startups Rushes Around Policy Support Sites
"Small Things Gather to Become Strong"... Support for Improving Mask Production
Voluntary Win-Win Cooperation Culture Achievements... Direct Loans of 10 Million Won to Small Business Owners
Former Four-Term Lawmaker Demonstrates Drive and Leadership

Park Young-sun, Minister of SMEs and Startups

[Asia Economy Reporter Kim Daeseop] On April 9 last year, the day after her inauguration, Park Young-sun, Minister of SMEs and Startups, visited the site of a large-scale wildfire disaster in the Gangwon region. It was her first field visit as a newly appointed minister. The wildfire damage was so severe that the government declared five cities and counties?Goseong-gun, Sokcho-si, Gangneung-si, Donghae-si, and Inje-gun in Gangwon Province?as special disaster areas.

Minister Park visited the wildfire damage sites several times, listening to the difficulties faced by small and medium-sized enterprises (SMEs) and small business owners, and checked the status of recovery support. She organized a 'one-on-one customized dedicated problem solver' between the affected companies and the Ministry of SMEs and Startups to provide swift and close support on-site. Working closely with related agencies, she implemented support measures such as institutional improvements for damage recovery, expansion of loan limits for support funds, interest rate reductions, and extension of repayment periods.

At the time, there was some skepticism in the related industries about whether Minister Park, who had no administrative experience, could handle the situation well. However, her drive and leadership as a four-term lawmaker left a strong impression.

Since the outbreak of the novel coronavirus disease (COVID-19), Minister Park has been working tirelessly across various fields to minimize damage to SMEs and small business owners and to revitalize the economy. Her drive and leadership have stood out during this COVID-19 crisis as well.

When a mask shortage occurred due to the spread of COVID-19, the 'Voluntary Win-Win Cooperation Companies (Jasanghan Companies)' selected by the Ministry of SMEs and Startups since last year began to take action. Jasanghan Companies share their own infrastructure, win-win programs, and know-how with partner companies and non-trading companies such as SMEs and small business owners. Eleven Jasanghan Companies, including Samsung Electronics and KB Kookmin Bank, have been selected and are active.

Samsung Electronics dispatched mentors to SMEs struggling with mask production due to a shortage of filters, providing know-how on smart factory technology and connecting them with filter suppliers to support production improvement. Minister Park said, "I think Samsung itself is making a great effort to change a lot." This remark shows a different side from when she served as chairperson of the Democratic Party's Special Committee on Chaebol Reform before her appointment as minister, during which she was known as a chaebol sniper and Samsung sniper.

Due to the impact of COVID-19, financial difficulties for SMEs and small business owners have increased. Minister Park devised an emergency direct loan policy of 10 million won for small business owners, something never done before. She is working with related agencies and commercial banks to ensure that policy funds are quickly disbursed.

Minister Park said, "We have been running non-stop for the past year, but the unexpected COVID-19 froze us all. However, I applaud the strong power to turn the COVID-19 crisis into an opportunity." The strong power she referred to is the 'power of connection.' She explained, "Through the power of connection, small things come together to create strong power."

The basic philosophy of the Ministry of SMEs and Startups is 'coexistence and mutual growth.' Minister Park cited 'building Jasanghan Companies' and 'expanding venture investment' as major achievements of the ministry's policies during her first year in office. The scale of domestic venture investment exceeded 4 trillion won for the first time last year, and the proportion of venture investment relative to gross domestic product (GDP) rose to 0.22%, entering the top four ranks following the United States, Israel, and China.

The goal set by the Ministry of SMEs and Startups this year is a great transition to the digital economy and a smart Korea. Minister Park said, "In the era of a great transition to the digital economy, an internet-based online economy and a non-face-to-face untact economy will surge."

However, even after Minister Park's inauguration, concerns remain in some quarters that the Ministry of SMEs and Startups is not fully fulfilling its role as the government's control tower for SME and small business policies. Although it was elevated from the Small and Medium Business Administration to a ministry in July 2017, voices say it is still experiencing considerable growing pains during the organizational transformation.

The policy targets and support areas of the Ministry of SMEs and Startups are very broad. Some functions overlap with other ministries, and there are not many tasks that the ministry can solve alone. Moreover, a stronger organization is needed to respond efficiently to the increasing policy areas. The ministry must now shed the label of a newly established ministry. This is a challenge that Minister Park must actively communicate and resolve with related agencies, the Blue House, the National Assembly, and stakeholders.

Upon her inauguration a year ago, Minister Park promised to establish the ministry's stature as a true symbolic ministry of the Moon Jae-in administration. She also pledged to strengthen the clarity and identity of the ministry's policies through selection and concentration. To keep this promise, Minister Park must demonstrate more achievements.