Minister of SMEs and Startups Candidate Lee Young: "I Did Not Build Specs or Use Companies for Political Purposes"

Lee Young, nominee for Minister of SMEs and Startups, is attending the confirmation hearing held at the National Assembly on the 11th and taking the witness oath. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Kim Bo-kyung and Kwak Min-jae] Lee Young, nominee for Minister of SMEs and Startups, defended himself on the 11th, stating, "I did not build my credentials or use my company to engage in politics."

The National Assembly's Industry, Trade, Energy, SMEs and Startups Committee held a confirmation hearing for nominee Lee on the morning of the same day. The operation and investment methods of the companies he founded (Terten, Y Alliance Investment) and potential conflicts of interest became key issues during the hearing.

The opposition questioned the venture capital (VC) firm Y Alliance Investment for investing in sound companies, contrary to its original purpose of fostering youth startups, and for transferring Y Alliance Investment shares to Sanha Industry, where former Korea Federation of SMEs Chairman Park Sung-taek is the largest shareholder.

Democratic Party lawmaker Lee Dong-joo said, "There is suspicion that the VC was used as a personal safe for former Chairman Park of the Korea Federation of SMEs," adding, "It appears there are special economic interests with a specific entrepreneur, raising concerns about whether fair venture investments can be made."

In response, nominee Lee said about Y Alliance Investment, "If you visit my Facebook, you can see photos and records from 2017 to 2020 of pitching with startups," adding, "Thirty entrepreneurs gathered to form a team for angel funding and mentoring." He further explained, "I have never heard that creating a VC leads to becoming a member of the National Assembly."

Lee Young, nominee for Minister of SMEs and Startups, is attending the confirmation hearing held at the National Assembly on the 11th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

Additionally, the opposition raised concerns about nominee Lee’s tenure as CEO of IT specialist company Terten, during which he served as a government advisory member while supplying his company's products to public institutions.

Nominee Lee responded, "The solution was registered through the proper procedures of the Public Procurement Service," and added, "Sales to public institutions account for less than 10% of the company's total revenue."

He stated, "I did not build credentials or use my company to engage in politics," and explained, "Although I lack experience in business, I decided to take on the ministerial role after hearing from seniors that I have a strong public interest DNA through my work as an advisory member."

Regarding policies for small business owners, nominee Lee said, "The previous government made efforts to respond to sudden disasters," but expressed regret, saying, "I wish scientific estimates had been made quickly so that more substantial support could have been provided early on to small business owners and self-employed people who were severely affected, rather than distributing disaster relief funds to the entire population." He emphasized, "Recovery and relief must go hand in hand."