100 Days in Office: Minister Hansung Sook of SMEs and Startups Vows to Focus on Growth Beyond Recovery

Ministry of SMEs and Startups Holds 100-Day Press Conference
Presents Four Key Directions: Venture Boom, Scaling Up, and More
Over 6,000 Promising Startups to Be Fostered Annually
2.2 Trillion Won Investment in R&D
Proactive Monitoring and Support for Small Business Owners

Hansung Sook, Minister of SMEs and Startups, has presented a roadmap for the advancement of small and medium-sized enterprises (SMEs) and small business owners. While the focus so far has been on recovering livelihoods affected by a prolonged domestic economic downturn, the new objective is to concentrate all efforts on strengthening the competitiveness of SMEs and small business owners.

Hansung Sook, Minister of SMEs and Startups, is giving a presentation at the '100 Days in Office Press Conference' held on the 5th at Tipstown S1 in Gangnam-gu, Seoul. Ministry of SMEs and Startups

On November 5, at the '100 Days in Office Press Conference' held at Tipstown in Gangnam-gu, Seoul, Minister Hansung Sook announced this vision. She stated, "Last year, the number of business closures exceeded 1 million, and the difficulties faced by small business owners due to the economic downturn were more severe than ever. Since taking office, I have focused on supporting the recovery of small business owners, but from now on, I will develop measures to foster competitive small business owners and SMEs."

The policy directions presented by Minister Hansung Sook for the growth of SMEs and small business owners are broadly divided into four categories: ▲Reviving the Venture Boom ▲Scaling Up SMEs ▲Energizing Small Business Owners ▲Creating an Ecosystem of Connection and Convergence.

First, Minister Hansung Sook aims to create a 40 trillion won venture investment market by allowing pension funds and retirement pensions to invest in venture funds, and by establishing systems to encourage venture investment from financial institutions and the general public. The goal is to nurture more than 6,000 promising startups annually. The plan also includes fostering 1,000 youth entrepreneurs and 1,200 TIPS-selected companies to usher in an "era of entrepreneurship for all." To support AI and deep tech ventures and startups, the 13.5 trillion won "Next Unicorn Project" will launch next year. Depending on company size, funds will be allocated as startup funds (around 50 billion won in company value), scale-up funds (around 150 billion won), and unicorn funds (around 500 billion won), with the aim of making larger investments in competitive companies.

Minister Hansung Sook explained, "We will establish a one-stop startup platform so that anyone who wishes to start a business can use it as their first point of contact. This is to encourage the creation of good companies and to actively support those with growth potential."

SMEs with outstanding technology will also be actively fostered. A record 2.2 trillion won will be invested in R&D (research and development), with 1.1 trillion won allocated to "matching support" by company growth stage, similar to the TIPS model. An additional 200 billion won will be invested in R&D for technology commercialization, including the introduction of a Korean-style STTR (Small Business Technology Transfer Program modeled after the U.S.).

The digital transformation of SMEs through artificial intelligence (AX), which was emphasized at the time of her inauguration, is also expected to accelerate. The goal is to supply 12,000 AI-powered smart factories and foster 500 companies that provide manufacturing AI technology. Through this, 100 manufacturing AI solutions will be discovered annually to support market expansion through overseas IR and public procurement.

Hansung Sook, Minister of SMEs and Startups, is giving a presentation at the '100 Days in Office Press Conference' held on the 5th at Tipstown S1 in Gangnam-gu, Seoul. Ministry of SMEs and Startups

Measures to strengthen the self-reliance of small business owners were also given significant emphasis. The government will closely monitor the financial status of 3 million small business owners with outstanding loans, proactively detecting signs of crisis and providing tailored support. Additionally, by 2030, the government plans to revitalize local commercial districts by expanding alley-type shopping areas (target: 1,500), small alley markets (1,000), and regional flagship commercial zones (50). Promising small business owners will also be identified through the online brand small business development program (TOPS), in collaboration with online platforms.

There is also a long-term plan to create a new ecosystem by connecting large companies, SMEs, startups, and small business owners. Large manufacturers and SMEs will cooperate through supply chains; startups will grow by utilizing the infrastructure of large and small companies; and SMEs and small business owners will enhance their competitiveness by incorporating the innovative technologies of startups. Minister Hansung Sook explained, "Large companies, SMEs, and small business owners are ultimately each other's customers. If they are organically connected, synergy effects can be generated."

The most important achievements since taking office have been boosting consumption and providing emergency support. Immediately after her appointment, Minister Hansung Sook focused on stimulating domestic demand and supporting small business finance through the "three-piece set" of Saengsaeng Payback, Companion Sale, and Onnuri Gift Certificate refunds, as well as expanding policy funds for small business owners, the Yellow Umbrella Mutual Aid Fund, and incentives for faithful repayment.

Minister Hansung Sook said, "At the time of my appointment, the most urgent goal was to restore the livelihoods of small business owners. As a result, consumer sentiment and the perceived economy have visibly improved, and various policies have produced more than 4.1 trillion won in domestic demand stimulus effects." She added, "Judging by the pace at which the budget for closed small business owners is being depleted, it is clear how difficult the situation remains for small business owners. This remains the most urgent issue to be resolved during my term."