Han Sung-sook: "Shifting SME Policy Focus to Growth... More Medium-Sized Companies Needed"

Press Conference Marks First Anniversary of Administration

Support Programs to Be Restructured to Accelerate Growth of Medium-Sized Enterprises

Han Sung-sook, Minister of SMEs and Startups, announced her intention to shift the focus of SME policy from "protection" to "growth." Rather than short-term and small-scale support, the ministry plans to increase the number of sizable companies through mid- to long-term and package-based support measures.

Minister Han Sung-sook of the Ministry of SMEs and Startups announced the activities and major achievements of the past year at a press conference held on the 28th at the Startup Venture Campus Seoul in Mapo-gu, Seoul. Ministry of SMEs and Startups

On May 28, at the Startup Venture Campus Seoul in Mapo-gu, Seoul, Minister Han presented the Ministry's activities and major achievements over the past year at a press conference marking the first anniversary of the administration. She outlined four key policy themes for the Ministry: Startup (Startups for All), Growth (TIPS), Leap Forward (Jump-up), and Second Challenge & Safety Net.

The Ministry of SMEs and Startups plans to restructure its support programs from the second half of the year to better foster the "growth" of SMEs. Reflecting criticism that the Ministry runs too many programs with limited support per company, the new approach will emphasize selection and concentration. The goal is to help small enterprises increase their revenues and grow into medium-sized companies. According to the Enforcement Decree of the Framework Act on Small and Medium Enterprises, a medium-sized company is defined as one with an average annual sales of 40 billion to 180 billion won over the past three years, while a small company is defined as one with sales of 1 billion to 14 billion won.

Minister Han stated, "There are currently about 135,000 medium-sized companies, but we need to increase this number. By focusing on medium-sized companies and accelerating their growth, successful businesses can further boost their sales and employment." She added, "We will establish and refine evaluation criteria for the growth and growth potential of SMEs, launching a pilot program this year and expanding it fully from next year."

With the annual number of business closures surpassing 1 million, Minister Han made strengthening the social safety net for small business owners a key task early in her tenure and has continued to visit the field. In March, the Ministry introduced the "Crisis Alert Talk" service to notify small business owners facing management crises about available support policies. Minister Han plans to further segment small business owners and provide tailored policies to meet their specific needs.

She explained, "Even though we increased the Hope Return Package support fund and provided management stabilization packages, the number of business closures has not decreased. Instead, I believe we need more systems like Crisis Alert Talk. Small business owners should also be grouped more systematically. For example, we are considering creating separate measures for single-person female entrepreneurs."

For the second round of the Startups for All program, the scale will be increased so that 10,000 participants are selected in the first round. The Ministry is also reviewing ways to relax the startup qualification requirements starting from the second round, such as extending the eligibility period from within 3 years of founding to within 7 years.

Minister Han said, "We are considering extending the current 3-year period to 7 years from the second round onward. Even the Startup Promotion Act defines a startup as a company within 7 years of founding. The idea is to give more opportunities to those who want to learn formally or launch a business."

In addition, the Ministry is considering creating separate leagues within Startups for All for overseas residents and teenagers. Minister Han commented, "There has been significant demand from Koreans abroad in places like Silicon Valley, as well as from international students in Korea, and we did not expect so many applications from teenagers. From the second round, we are planning to divide the leagues accordingly."

Emphasizing the importance of fostering a startup ecosystem, Minister Han stated, "For the next 20 years, it is crucial for Korea to become a startup nation and to create an environment where entrepreneurs can pursue the businesses they want."

Regarding the proposed amendment to the Distribution Industry Development Act, which centers on permitting early morning delivery by large supermarkets, Minister Han said, "From the perspective of small business owners, this inevitably feels like a crisis," adding, "The Ministry continues to discuss measures for coexistence. I believe we need to strengthen policy support so that traditional markets can perform even better."

Addressing the conflict between small business owners and food delivery app companies over free delivery expansion, Minister Han suggested that disclosing cost structures could be an alternative. She explained, "Overseas, it is standard for consumers to pay delivery fees directly, and there are models where both platform commissions and delivery charges are disclosed. However, platform companies may be reluctant to reveal their cost structures due to competition over market share."

Since her appointment in July last year, Minister Han has visited 152 sites, announced 23 measures, and achieved improvements in 78 laws and systems. Other policy initiatives include introducing a Korean-style evidence discovery system to eradicate technology theft, expanding the supply price linkage system, and establishing a fire insurance system for traditional markets.

This content was produced with the assistance of AI translation services.