[2026 Parliamentary Audit] Lee Soyoung Launches 'Regulatory Innovation Committee'... Challenges Pile Up at First Audit (Roundup)

Calls for Four Policy Priorities, Including Boosting Startups and Venture Investment
On Tighter KOSDAQ Delisting Criteria: "Discussion with the FSC"
Gaps in Technology Theft Protections... Emphasizes Strengthening Remedies for Victims
Onnuri Gift

Lee Soyoung, Minister of SMEs and Startups, announced during the National Assembly's parliamentary audit on the 7th that the government would establish a Startup and Venture Regulatory Innovation Committee and actively improve regulations that hinder emerging industries. At her first parliamentary audit, held just 10 days after taking office, lawmakers raised not only regulatory reform but also other pressing issues requiring coordination among ministries and more effective policies, including KOSDAQ delisting criteria, technology theft from small and medium-sized enterprises, Onnuri gift certificates, and the All People's Startup initiative.

At the National Assembly's audit of the Ministry of SMEs and Startups by the Industry, Trade, Energy, SMEs and Startups Committee, Lee said, "We will establish a Startup and Venture Regulatory Innovation Committee," adding, "We will make sure that new initiatives are not blocked by regulatory barriers before they even get started." Since taking office, she has pledged to actively consult with relevant ministries on issues that the Ministry of SMEs and Startups cannot resolve alone, calling herself a "minister for regulatory reform."

Lee outlined four policy directions: ▲ revitalizing startups and venture investment, including through the establishment of the Startup and Venture Regulatory Innovation Committee; ▲ helping small business owners recover and boosting their vitality; ▲ strengthening the competitiveness of small and medium-sized enterprises; and ▲ creating a fair and mutually beneficial business environment.

For small business owners, the ministry plans to quantify and monitor cost burdens, including rent, labor costs, interest, and platform fees, while strengthening policy financing and social safety nets for vulnerable businesses. It will also support greater participation by small and medium-sized enterprises in national strategic industries, their overseas expansion, and their transition to artificial intelligence (AI). The ministry also plans to strengthen penalties for technology theft and expand mutually beneficial cooperation in the platform and financial sectors.

Lee Soyoung, Minister of SMEs and Startups, answers lawmakers’ questions during a parliamentary audit of the ministry at the National Assembly on the 7th. Photo by Yoon Dongju.

KOSDAQ Delistings and Technology Theft: Calls for Improvements to the System

At the audit, lawmakers focused on loopholes in existing systems and oversight problems. Woo Jaejun of the People Power Party said that the Financial Services Commission's tighter KOSDAQ delisting criteria could force out small and venture businesses with growth potential. Lee said, "Judging companies solely by their market capitalization could lead to unfair outcomes," adding, "I will try to have our views reflected, even if that means discussing the matter with the Financial Services Commission chairman."

Technology theft involving small and medium-sized enterprises was also a key issue. Lawmakers said institutional gaps must be addressed before the Korean-style evidence investigation system takes effect in 2028, and measures must be put in place to provide meaningful remedies to companies harmed by technology theft. Lee responded that the Ministry of SMEs and Startups should address the fact that its current administrative action in such cases is limited to recommending corrective measures. "If a surcharge system is introduced under the Technology Protection Act, the best approach would be to channel the surcharges into a fund and use it to compensate victims," she said.

Onnuri Gift Certificate Use and Illicit Distribution Under Scrutiny

Issues surrounding Onnuri gift certificates were a major focus in discussions on small business owners. Park Seongmin of the People Power Party said that imported electronics worth several million won could be purchased with Onnuri gift certificates through the online traditional market mall. Lee said it was contractually possible to restrict the products sold through the online traditional market mall and that the ministry would review the idea.

Allegations of illicit distribution and oversight of Onnuri gift certificates also came under scrutiny. Kim Woni of the Democratic Party of Korea questioned the legitimacy of transactions at a traditional market cooperative in Gwangju, saying that 12.2 billion won of its 12.8 billion won in sales last year had been paid for with Onnuri gift certificates. Lawmakers also alleged that, when their office checked the registered business address of a participating merchant, it found another business operating there. Lee said, "We will conduct a thorough investigation, not only on our own but also with the cooperation of the National Tax Service and relevant agencies, and report back before the comprehensive audit."

Lee Soyoung, Minister of SMEs and Startups, reviews documents during the National Assembly’s audit of the ministry by the Industry, Trade, Energy, SMEs and Startups Committee on the 7th. Yonhap News

Calls to Keep the Youth Startup Academy and Criticism Over Data Leak in All People's Startup Initiative

On startup support policies, Lee addressed the Youth Startup Academy, which was not allocated a budget for 2027. "The alumni network built by the Youth Startup Academy over 16 years is a valuable asset that could not be recreated even with hundreds of billions of won if it were lost," she said. "We are looking for a way to keep the academy going." She also said the issue would be actively discussed during the National Assembly's budget deliberations.

The All People's Startup initiative, launched by the government in 2026, faced criticism over a data leak from its platform and the selection process for its developer. Yoon Hanhong of the People Power Party cited platform developer Triple O's and asked why the existing platform would continue to be used for the second-phase project even after the data leak. Lee said, "It is being used temporarily until the new platform is built," adding, "I understand that a new company will be selected next year, in 2027, to build a new platform." She said police are investigating the data leak and that some parts of the case have been referred to prosecutors.

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