Politician Likely to Be First SMEs Minister Under Lee Administration... "Policy Priorities Are Key"

Kim Namgeun of the Democratic Party Among Leading Candidates
Prominent Politician Likely to Be Appointed
Strengthening Small Business Role Possible... Former Lawmaker Lee Dongju Also Mentioned
If Focus Shifts to Advanced AI Industry, Business Leaders Could Be Considered

As the formation of the first Cabinet under the Lee Jae Myung administration gradually gains momentum, attention is also turning to the appointment of the new head of the Ministry of SMEs and Startups. While the prevailing view is that the trend of appointing prominent politicians will continue this time as well, there is also speculation in some quarters that President Lee Jae Myung, who has emphasized revitalizing local commercial districts, may appoint an economic expert with a specialization in small business policy to the ministerial post.

President Lee Jae Myung is striking the gavel to open the Cabinet meeting at the Presidential Office in Yongsan, Seoul, on the 10th.

According to government and industry sources on June 12, Kim Namgeun, a lawmaker from the Democratic Party of Korea, is consistently mentioned as a leading candidate for the first Minister of SMEs and Startups under the Lee administration. Kim previously served as the head of the Civil Livelihood Hope Headquarters at the People's Solidarity for Participatory Democracy and as the inaugural chair of the Civil Economy Committee at Lawyers for a Democratic Society (Minbyun). He was recruited by the Democratic Party as a "livelihood expert" ahead of last year's general election. Based on his experience leading initiatives such as the Commercial Building Lease Protection Act, he is seen as someone who could help address the unfair competitive structure between large and small businesses.

The likelihood of a politician being appointed as minister in this administration is closely related to perceptions of the role and status of the Ministry of SMEs and Startups. Having started as an external agency under the Ministry of Industry (now the Ministry of Trade, Industry and Energy) in 1996 and being elevated to a full ministry in 2017, the Ministry of SMEs and Startups still has limited functions and authority. As a result, there is a broad consensus that the "manpower" of a prominent political figure is needed in various respects. With the exception of the current Minister, Oh Youngju, who is a career diplomat, all previous ministers of the Ministry of SMEs and Startups have been current or former members of the National Assembly.

The key question appears to be which role the Lee Jae Myung administration will prioritize for the ministry. President Lee, both as party leader and as a candidate, consistently emphasized support for small business owners and revitalization of local commercial districts. In light of this stance, some interpret that there is a possibility the ministry could be led by someone with expertise in small business policy. In this context, former Democratic Party lawmaker Lee Dongju, who served as Policy Planning Director at the Korea Federation of Micro Enterprise and as Vice President of the Korea Federation of Micro Businessmen and Self-Employed, as well as In Taeyeon, head of the Democratic Party's Civil Livelihood Headquarters and the first secretary for self-employed affairs at the Blue House during the Moon Jae In administration, are being mentioned as potential candidates.

There is also a possibility that President Lee, who has advocated for initiatives such as "100 trillion won investment in artificial intelligence (AI)," may place greater emphasis on fostering advanced venture companies. In this scenario, it is likely that a candidate with extensive on-the-ground experience and a deep understanding of the field, such as a businessperson, would be appointed. This is why former Democratic Party lawmaker Lee Yongwoo, who founded KakaoBank, and Kim Yongjin, a professor of business administration at Sogang University and considered one of President Lee's business management experts, are also being mentioned as part of the candidate pool.

There are both internal and external concerns regarding President Lee's "citizen recommendation system," in which major public official candidates are directly recommended by the public. This is because there is a possibility that individuals who are popular with the public, rather than those with the necessary qualifications and abilities, may be repeatedly recommended.

One internal official stated, "Since this is a promise made to the people, candidates recommended by citizens should not be completely excluded, but I also do not think it is appropriate for candidates with a high number of recommendations to receive significant extra points," adding, "The citizen recommendation system should be used as a supplementary tool, but I hope that the minister will be someone who can effectively reflect the voices of SMEs in policy within an economy centered on large corporations and serve as a bridge between the government, the National Assembly, and the field."