[Reporter’s Notebook] To Become a Global Venture Powerhouse, Unlock Regulatory Barriers Before Rolling Out the Red Carpet

Blocked by Regulations Despite a Rosy Vision
Outdated Perceptions Must Be Removed Through Comprehensive Government Cooperation

The third pillar of the business world. This single phrase sums up the status of our venture companies. According to recent data from the Ministry of SMEs and Startups, the combined sales of the "K-Venture Corps," which consists of more than 38,000 companies, reached 236 trillion won last year, ranking third after Samsung (332 trillion won) and Hyundai Motor (280 trillion won). The number of employees hired by these companies stands at 830,000, which is even higher than the total number of regular employees in the four largest conglomerates (750,000). While many of these venture companies and startups remain unfamiliar to the public, together they are redrawing the map of Korea's economy and industry.

The government has unveiled an ambitious blueprint to maximize the dynamism of ventures, aiming to become one of the "four global venture powerhouses." It has also proposed bold action plans, such as nurturing 10,000 deep-tech startups and achieving 40 trillion won in annual investment by 2030. The determination to secure new growth engines with even greater vigor, centered on the Ministry of SMEs and Startups, is encouraging. The problem, however, is that this rosy vision is still blocked by a tangled web of regulations. No matter how good the fuel, if foreign substances like regulation are stuck in the engine, the car cannot move forward. A prime example is the so-called "Doctor Now Prevention Act" (the revised Pharmaceutical Affairs Act), which has recently become a point of contention between the Ministry of SMEs and Startups and the Ministry of Health and Welfare.

This bill, which completely blocks non-face-to-face medical platforms from entering the pharmaceutical wholesale business, sends a chilling warning to the venture ecosystem: "Innovate only within the boundaries permitted by the existing order." At the same time, it symbolically demonstrates that our regulatory environment cannot keep pace with the speed of innovation. It could become a repeat of the Tada incident, where the influence of interest groups with political power was not filtered out. And these are just a few examples. There are countless stories of ventures being caught in the traps of vested interests and regulations, such as LawTalk and SamzzumSam, which connect lawyers and tax accountants with consumers, and others blocked by outdated rules lurking in various corners, even if not always visible.

The growth of our ventures to this point is certainly commendable. It is thanks to the tireless efforts of entrepreneurs who have kept new engines running despite adverse conditions at home and abroad. However, considering that the more advanced an economy becomes, the greater the role and function of SMEs, including ventures and startups, at the foundation of industry, it is only natural to wonder, "Why are we still only at this level?" rather than to be surprised by "how far we've come already." Their status as "the third largest in the business world" clearly symbolizes hope for our economy. At the same time, it is a stern warning that outdated regulations must not block the way forward. This is why it is urgent to boldly dismantle regulatory barriers and establish comprehensive government cooperation to help these companies rise to second place, and eventually to first.