So-Young Lee: "Resolving Unreasonable Regulations Is the Job of the Ministry of SMEs and Startups; I Will Discuss and Persuade Other Ministries"

So-Young Lee Meets with Venture and Startup Leaders
"We Will Ensure the Ministry's Voice is Heard on the KOSDAQ Reform Plan"
On Calls from the Venture Industry to Ease Work Hour Regulations: "Will Consider Options"

Soyoung Lee, nominee for Minister of SMEs and Startups, stated on the 10th regarding the removal of regulations on ventures and startups, "The Ministry of SMEs and Startups should take responsibility for eliminating unreasonable regulations imposed by other ministries. If necessary, I will engage in discussions and persuasion with ministers of regulatory agencies."

So Young Lee, nominee for Minister of SMEs and Startups, is answering questions from the press after a casual meeting at the Korea Venture Business Association in Guro-gu, Seoul on the 10th. Ministry of SMEs and Startups

After visiting the Venture Business Association in Guro-gu, Seoul, that day, Lee met with reporters and addressed issues such as the recent KOSDAQ reform plan, stating, "The strengthened delisting standards and the introduction of a promotion and relegation system for KOSDAQ, which are currently being discussed, will directly affect small- and venture-cap companies and also raise concerns about protecting existing investors." She added, "I will not neglect or dismiss the worries of SMEs and ventures or the issue of investor protection in listed companies as matters for other ministries. I will actively communicate their opinions and, if necessary, hold discussions with the Chairman of the Financial Services Commission."

The venture industry has been calling for a review of the KOSDAQ reform plan, arguing that measures such as the KOSDAQ promotion and relegation system could make it more difficult to raise and recover capital. Lee explained that the feasibility and market acceptance of such measures need to be examined, and emphasized that the Ministry of SMEs and Startups should also voice its position regarding the strengthening of delisting requirements.

Lee stated, "While I believe the industry generally agrees on the need to remove insolvent companies from the KOSDAQ market due to declining trust, the speed and approach of capital market policies are crucial, even if the direction is right." She continued, "We need to review whether the tightening of standards is within a range the market can handle and whether the existing shareholder protection measures are adequate. The Ministry of SMEs and Startups should also make its voice heard on these points."

Regarding calls for exceptions to the 52-hour workweek regulation, Lee said, "Given the work characteristics of the venture and startup sectors, I am open to listening and considering whether the working hours regulations could be made more reasonable." She further noted, "With the introduction of the Mega Special Economic Zone Act, the issue of working hour regulation is being brought up at the government level, and I will actively consider whether the Ministry of SMEs and Startups needs to speak out on this agenda."

When asked about concerns that the recent amendment to the Commercial Act—which Lee has promoted, including strengthening directors’ and shareholders’ fiduciary duties—could discourage investment, Lee replied, "There is no conflict between these objectives."

Lee stated, "The core problem small- and medium-sized enterprises and venture companies face in the KOSDAQ market is a lack of trust among investors. Institutional investors have been reluctant to enter, and individual investors have been forced to make high-risk investments." She continued, "The market has failed to serve as a channel for raising growth capital or allowing venture capital to exit, and this has hindered further growth. Multiple measures are needed to restore trust, and the best way to do this is by making corporate decision-making structures more transparent and reliable."

When asked about the venture industry’s requests for exemptions from mandatory treasury share cancellations, Lee commented, "Because venture companies tend to hold treasury shares long-term for employee compensation, there is an angle here that requires a different perspective." She added, "The recently amended Commercial Act includes various exceptions for business reasons, including employee compensation, so careful review is needed to determine if any further supplementation is required."

Regarding conflicts between the venture/startup sector and small business owners—which fall under the jurisdiction of the Ministry of SMEs and Startups—as well as clashes between new and traditional industries, Lee said, "President Jaemyung Lee has also emphasized that resolving conflict through harmony, rather than all-or-nothing solutions, is the duty of politicians," adding, "I will work with the same principles and stance."

Lee did not provide a clear answer regarding her plan to sell an apartment in Hongje-dong, Seodaemun-gu, Seoul, which is her only residential property and not her primary residence. She reiterated that the purchase was not for gap investment, explaining, "We bought it in 2016, only changed the wallpaper, flooring, and windows, and lived there as a newlywed home for four years. It's difficult to accept the use of the term 'gap investment' here." She added, "I have tried to sell it several times since my first election, but it simply hasn't sold."

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