[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Outdated Perceptions Must Be Swept Away Through Government-Wide Cooperation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 Group (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). In effect, venture companies and startups-many of which are still unfamiliar to the public-are coming together to redraw the map of the 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 presented bold action plans, such as fostering 10,000 deep-tech startups and achieving 40 trillion won in annual investment by 2030. It is encouraging to see the Ministry of SMEs and Startups leading the charge to secure new growth engines with even greater intensity. The problem, however, is that this rosy vision remains blocked by a tangled web of regulations. No matter how good the fuel, if the engine is clogged with regulatory debris, the car cannot move forward. A prime example is the so-called "Doctor Now Prevention Act" (the revised Pharmaceutical Affairs Act), which has recently sparked controversy due to a standoff 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 is a symbolic illustration of how 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 clout went unchecked. And these are just a few examples. There are countless other stories-such as those of LawTalk and SamzzumSam, which connect lawyers or tax accountants with consumers-where vested interests and regulatory traps have ensnared new players, and where outdated rules lurking in various corners have created invisible hurdles.

The growth achieved by our ventures is certainly worthy of recognition. It is thanks to the tireless efforts of entrepreneurs who 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 small and medium-sized enterprises-including ventures and startups-at the foundation of industry, it is only natural to wonder, "Why are we only at this level?" rather than to be surprised by how far we've come. 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 their path. This is why bold government-wide cooperation is urgently needed to break down regulatory barriers and enable these companies to rise to second place, and eventually to the top.