Nominee So-Young Lee Says "Self-Employed Cost Structure Unsustainable... Reduction Roadmap to Be Prepared"

Lee: "A New Approach Never Attempted by the Ministry of SMEs and Startups"


On Political Donation and Gift Tax Allegations: "Malicious Attacks"

On September 8, So-young Lee, nominee for Minister of SMEs and Startups, announced, "I will analyze and quantify the total management burdens facing the self-employed, establish a roadmap for cost reduction by systematizing policies aimed at alleviating the various individual costs they bear." She firmly refuted allegations regarding political donations and the omission of gift tax related to her personal affairs.

Lee made the remarks in a conversation with reporters after finishing a meeting at the Federation of Small and Medium Business (Sogongyeon) in Yeouido, Seoul, that morning, stating, "This is an initiative that the Ministry of SMEs and Startups has not attempted before." She added, "Through discussions with the Federation, I realized that this kind of new approach is truly necessary."

The backdrop to this plan lies in the assessment that the cost structure for self-employed individuals has already reached an unsustainable level.

She explained, "Despite record-breaking growth rates, self-employed people are feeling like there is nothing left in their hands even after working hard." She pointed out, "High interest rates, high inflation, high fuel costs—on top of those, in the case of delivery applications, a variety of fees are paid to the app companies, and as a result, self-employed business owners in Korea sometimes cannot even cover labor costs. This is the reality." She added, "This is why business closures continue to rise."

Regarding the government's recent policy of subsidizing public delivery apps with discount coupons, she criticized, "Such fiscal injections are extremely inefficient." She asserted that it would be more desirable to allocate public funds in ways that not only improve services but also produce effects ten to twenty times higher with the same expenditure. She noted, "In addition to seeking ways to foster win-win cooperation with delivery app companies, I am considering the promotion of delivery apps with lower commission fees." She added, "If the opportunity arises, I will share more of my opinions step by step."

So-young Lee, nominee for Minister of SMEs and Startups, is explaining future policy directions to reporters after finishing a conversation meeting held at the Federation of Small and Medium Business on the morning of the 8th. Photo by Ho-kyung Choi

Lee also addressed the allegations related to political donations made against her, stating, "I deeply regret that reports have been made in a malicious way without so much as fact-checking."

Earlier, the opposition bloc had raised suspicions that Lee, after entering the National Assembly, received political donations from prospective metropolitan and local council candidates from her district in Gwacheon and Uiwang, Gyeonggi Province, which they characterized as "nomination kickbacks."

Lee responded, "Most of my sponsors support my climate policy or my amendments to the Commercial Act." Regarding the local election candidates singled out by opposition lawmakers, she said, "Some ran for office in districts where it is hard to even find a candidate and lost; others confidently participated in party primaries, won, and ultimately received nominations."

She also addressed allegations of omitted gift tax related to her mother's jeonse (rental deposit). Previously, Choi Su-jin, a lawmaker from the People Power Party, had alleged that Lee's spouse lent 223.1 million won interest-free to Lee's mother-in-law in 2022 as a rental deposit, arguing that this constituted a taxable gift.

Lee explained, "My mother, who lives alone, needed additional funds while searching for a villa in Uiwang, so we helped with the rental deposit." She continued, "My mother owns no real estate, has no income, and I am her only child." Still, she stated, "To prevent unnecessary controversy from escalating, I plan to proceed with the gift tax reporting and payment process."

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