Lee Young: "We Will Realize a Warm Digital Economy Led by Small and Medium Ventures"

Press Conference on the 100th Day of Lee Young's Inauguration as Minister of SMEs and Startups on the 30th

Lee Young, Minister of SMEs and Startups, is presenting the '100-day achievements and core policy promotion strategy' at a press conference commemorating his 100th day in office, held on the 30th at the Government Seoul Office in Gwanghwamun, Seoul.

[Asia Economy Reporter Kim Cheol-hyun] Lee Young, Minister of the Ministry of SMEs and Startups (hereinafter referred to as the Ministry of SMEs), marked his 100th day in office by presenting the vision of "Realizing a Warm Digital Economy." He expressed his ambition to lead innovation based on the digital economy and coexistence across the Ministry’s areas of responsibility, including startups, ventures, small merchants, and SMEs.

At a press conference held on the 30th at the briefing room of the Government Seoul Office Annex, Minister Lee stated, "The second half of this year is a critical period that will determine whether we leap forward as a leading digital economy nation." By 2030, the dominant country of the Fourth Industrial Revolution will be decided, and amid the compounded crises of COVID-19 and the three highs (high inflation, high interest rates, and high exchange rates), the "golden time" to become a leading digital economy nation is running out. Minister Lee said, "Considering our digital competitiveness, if we ensure execution capability, we have a chance of success," and explained key tasks and policy directions across various fields.

◆ Startups and Ventures Driving Digital Economy Innovation = First, the Ministry of SMEs plans to actively promote deregulation reforms and global expansion in the startup and venture sector. Minister Lee said, "We must break down regulations in areas where many companies are challenging." Specifically, the plan is to expand the Regulatory Free Zones into Global Innovation Zones. For example, in the current Regulatory Free Zones, businesses that are illegal under existing laws and norms are being tested, but participation is restricted based on the business address. Going forward, the system will be changed so that participation in demonstration tests is possible regardless of address.

To promote global expansion, measures will be implemented to attract foreign capital and expand global networks. Minister Lee explained, "Although the number of domestic unicorns is increasing, it is hard to find unicorns dominating the global stage," and added, "We will activate the global expansion of the startup ecosystem so that companies can go beyond borders and thrive."

◆ Small Merchants as Innovative Entrepreneurs = In the small merchant sector, overcoming crises and enhancing competitiveness were presented as core tasks. Minister Lee diagnosed, "Small merchants have put out the urgent fires," and emphasized, "We need to move toward policies that foster corporate-type small merchants along with full recovery." To this end, a project applying venture business development programs to small merchants will be promoted. The goal is for small merchants to start, become ventures, and eventually unicorns. Minister Lee said, "We will select promising small merchants through competition and pitching and invest in them," adding, "We will create groups of commercial district planners and public-private matching funds, and professional teams will join to foster neighborhood commercial districts."

Minister Lee also placed emphasis on coexistence for small merchants. He intends to create measures to change the structure where small merchants struggle due to commissions while platforms grow into unicorns. He introduced, "Platform companies are causing social problems due to conflicts with small merchants," and said, "Next month, we are preparing an event where leading platform companies will declare coexistence."

◆ SMEs Growing in a Fair Market = Regarding SME policies, Minister Lee emphasized the need to eradicate unfair trade and accelerate digital transformation. A representative example is the pilot project for the delivery price linkage system. Minister Lee said, "The Ministry of SMEs and the Fair Trade Commission are preparing incentive plans to increase voluntary participation companies in the delivery price linkage system," and added, "The pilot project is planned for about six months, and we expect to complete the registration of about 30 companies as initially anticipated by the deadline." He also added, "Not only the number of participating companies but also the variety of items should increase."

Minister Lee pledged to focus on supporting digital transformation so that SMEs are not left out in the Fourth Industrial Revolution round. The smart factory initiative will focus more on qualitative advancement than quantitative growth. He explained, "There are 30,000 smart factories that have been established, and we need to organize and improve them so that they can be properly settled."

He emphasized, "The Ministry of SMEs has significant duties and responsibilities in the digital economy system," and said, "It is difficult to come up with ideas, but it is even harder to continuously execute them. We will strive to ensure that announced plans produce results."