Will the Ministry of SMEs and Startups Agencies Accelerate Leadership Appointments Amid Prolonged Vacancies?

Home & Shopping, Korea Technology Finance Corporation, and Korea Small Business Institute
New Leaders Needed for Key Agencies

The process of appointing heads for agencies under the Ministry of SMEs and Startups, where positions are currently vacant or terms have expired, is expected to accelerate. This is due to the conclusion of the first parliamentary audit under the new administration, as well as the prolonged leadership vacancies at several institutions. The chaos triggered last year by martial law and the impeachment of the president coincided with the timing of leadership changes, causing delays in the appointment procedures. Considering that the selection process for agency heads typically takes about two months and that the smooth implementation of SME policies is crucial at this time, there is a shared consensus both inside and outside the government that swift appointments are necessary.

According to government sources on November 12, among the 11 agencies under the Ministry of SMEs and Startups, three currently have vacant leadership positions or are being led by officials whose terms have expired but who are still in office: Public Home Shopping, Korea Technology Finance Corporation, and the Korea Federation of Micro Enterprise. Of these, the longest leadership vacuum is at Public Home Shopping, which has been operating under an acting CEO system for over a year since the resignation of former CEO Cho Seongho in September of last year. Public Home Shopping announced a recruitment notice for the CEO position in early March this year and accepted applications from candidates, but the final appointment was not made. At that time, the Executive Recommendation Committee shortlisted three candidates and submitted them to the general shareholders' meeting, but amid controversy over so-called 'parachute appointments,' it was concluded that there were no qualified candidates. This means the CEO selection process must start over from the beginning. The home shopping industry anticipates that, as the end of the year is the peak season and next year's business plans need to be established, a new recruitment notice for the Public Home Shopping CEO position will be announced soon.

The term of the chairman of Korea Technology Finance Corporation also expired in November of last year. However, Kim Joungho, the chairman, has continued to fulfill his duties until a successor is appointed, so there is no leadership vacuum. The corporation formed an Executive Recommendation Committee at the end of November last year, after Kim's term expired, and conducted document screening and interviews through December. However, due to the political turmoil caused by martial law and impeachment, the process could not be finalized. Although, in principle, the appointment could proceed with the previously shortlisted candidates, since the administration has changed in the meantime, a new recruitment notice may be issued.

The term of Park Seonghyo, chairman of the Korea Federation of Micro Enterprise, ended in July of this year. Park has also continued to perform his duties as a successor has not yet been appointed. Having previously served as Mayor of Daejeon and as a member of the 19th National Assembly for the Saenuri Party, Park has led the Korea Federation of Micro Enterprise since July 2022. As the government has prioritized small business policy, the appointment of a new chairman for the Korea Federation of Micro Enterprise, the key implementing agency, is also considered a top priority. The procedure involves forming an Executive Recommendation Committee, issuing a recruitment notice, screening documents, conducting interviews, and shortlisting candidates. The results are reported to the Ministry of SMEs and Startups, followed by a personnel verification process, and the final appointment is made by the president. A representative from the SME sector stated, "Given the time required for the appointment process and the potential problems with internal discipline and policy implementation that can arise if leadership vacancies are prolonged, it is necessary to expedite the related work."