SME Minister Lee So-young unveils startup venture regulatory innovation committee at audit
In short
South Korea's SMEs and startups minister, Lee So-young, said on October 7 that her ministry will create a "Startup Venture Regulatory Innovation Committee" to find regulatory improvements, and set out plans to expand the small-business social safety net and extend the Mother Fund's lifespan. She spoke in opening remarks at the National Assembly's Industry, Trade, Energy and SMEs Committee audit, which Asia Economy reported also examined delivery-app fees, Onnuri gift certificate concentration and slow disbursement of Homeplus supplier support funds.
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South Korea's SMEs and startups minister, Lee So-young, said on October 7 that her ministry would create a "Startup Venture Regulatory Innovation Committee" to find regulatory improvements, speaking in her opening remarks at the National Assembly's Industry, Trade, Energy and SMEs Committee audit. Yonhap and Asia Economy reported the plan under that name, while Seoul Economic Daily called the body a "startup regulatory innovation committee." [ 1 , 2 , 3 ]
For small business owners, Lee said employment insurance premium support would be expanded and industrial accident insurance and health care support newly introduced. A policy insurance would be introduced to cover suspension or closure risk for young startup microbusiness owners, and policy funds would be reorganized toward vulnerable operators. She said the ministry would quantify cost burdens such as rent, labour, interest and platform fees and keep managing them, and would push to legislate platform win-win cooperation. A "Korea Grand Festival" in the second half was cited to support domestic demand. [ 1 , 2 , 3 ]
On startups and venture investment, Lee said the new committee would find solutions "from the position of companies and the public," that six more startup cities would be designated in line with regional growth-engine industries, and that the Mother Fund's lifespan would be extended to create stable long-term venture investment conditions. Yonhap said private money would be gathered around the Mother Fund. [ 1 , 2 , 3 ]
For SME competitiveness, she said SMEs should take part as full players from the design stage of national strategic industries and large projects, with long-term bundled support for innovative firms in new security, pharmaceuticals and bio, and climate tech. Export roadmaps tailored to growth stages would be drawn up, and support would cover AI transition and carbon neutrality. [ 1 , 2 ]
On fair trade, Lee said administrative sanctions for technology theft would be strengthened and large fines introduced. Seoul Economic Daily noted that a Korea-style discovery system was introduced in the first half and a technology-theft reporting channel opened; Lee also said win-win cooperation would be spread to platforms and finance. [ 1 , 2 , 3 ]
Asia Economy reported that the audit also covered the ministry's existing policies: a survey found only 28.3% of delivery-app partner stores were satisfied with fee levels and a score of 38.2 out of 100 on fee appropriateness; 73.7% of Onnuri gift certificate spending in January-August went to the top 10% of merchants; and only 31.2 billion won of a 140 billion won-scale support fund for Homeplus suppliers had been spent. [ 3 ]
Later the same day, Seoul Economic Daily reported that Lee said she would review raising the effectiveness of public delivery apps and strengthening rider incentives. [ 4 ]
Why it matters
The announcements sketch the ministry's policy direction for small businesses, startups and venture investment, but the remarks were made at a parliamentary audit where existing programmes were also being scrutinised for effectiveness. How much of the agenda becomes legislation or budget depends on follow-up steps the documents do not describe. The measures are domestic in scope and mainly relevant to South Korean firms and self-employed workers.
Key facts
- SMEs and startups minister Lee So-young made the remarks in opening remarks at the National Assembly Industry, Trade, Energy and SMEs Committee audit on October 7. [ 1 , 2 , 3 ]
- Lee said a startup venture regulatory innovation committee would be created to identify regulatory improvements. [ 1 , 2 , 3 ]
- She said employment insurance premium support for the self-employed would be expanded and industrial accident insurance and health care support newly introduced. [ 1 , 2 ]
- She said a policy insurance would be introduced for young startup microbusiness owners facing suspension or closure, and policy funds reorganized toward vulnerable operators. [ 1 , 2 ]
- She said the Mother Fund's lifespan would be extended and six more startup cities designated. [ 1 , 2 ]
- She said SMEs should participate as full players from the design stage of national strategic industries and large projects. [ 1 , 2 ]
- She said technology-theft administrative sanctions would be strengthened and large fines introduced. [ 1 , 2 , 3 ]
- Asia Economy reported the audit also covered delivery-app fees, Onnuri gift certificate concentration and a 22% execution rate on a 140 billion won-scale Homeplus supplier support fund. [ 3 ]
Confirmed by several sources
- Lee So-young is the SMEs and startups minister and spoke at the October 7 National Assembly committee audit. [ 1 , 2 , 3 ]
- A startup venture regulatory innovation committee will be created to identify regulatory improvement tasks. [ 1 , 2 , 3 ]
- Small business owners' social safety net is to be strengthened, including expanded employment insurance premium support and newly introduced industrial accident insurance and health care support. [ 1 , 2 ]
- The Mother Fund's lifespan is to be extended to create more stable venture investment conditions. [ 1 , 2 ]
- SMEs are to take part from the design stage of national strategic industries and large projects. [ 1 , 2 ]
- Sanctions against technology theft, including large fines, are to be strengthened. [ 1 , 2 , 3 ]
Still unclear
- The name of the new body Seoul Economic Daily calls it a "startup regulatory innovation committee" while Yonhap and Asia Economy call it a "startup venture regulatory innovation committee"; the documents do not resolve the difference.
- Timing, legal basis and budget for the announced measures The documents describe plans only, with no dates, legislation or funding details.
- Lee's remarks on public delivery apps and rider incentives Reported only in a Seoul Economic Daily headline summary, with no article text, supporting detail or second outlet.
- Outcome of the audit questions on delivery-app fees, Onnuri gift certificates and Homeplus supplier support Asia Economy describes the issues raised but reports no results or responses on them.
What local media are saying
Timeline, local time
- Seoul Economic Daily publishes its report on Lee So-young's audit remarks on the startup regulatory committee and SME and small-business support plans. [ 1 ]
- Yonhap publishes its report on the same opening remarks, leading on the small-business social safety net. [ 2 ]
- Asia Economy publishes its report on the audit, including delivery-platform fee issues, Onnuri gift certificates and Homeplus supplier support. [ 3 ]
- Seoul Economic Daily reports that Lee said she would review raising the effectiveness of public delivery apps and strengthening rider incentives. [ 4 ]