Han Seong

Policy Paradigm Shift for SMEsFrom "Protection" to "Growth"Leadership Needed to Continue AchievementsSuch as the "Startup Project for All"

"As a result of our efforts for the growth of all, including small and medium-sized enterprises, venture businesses, and small business owners, we have achieved record-high SME exports and revitalized the startup ecosystem, creating tangible results." This is how the Office of the President explained the nomination of Han Seong-sook, Minister of SMEs and Startups, as the candidate for Prime Minister. Analysts say this statement hints at the future policy direction of the Ministry of SMEs and Startups, including the selection of her successor.

The key themes are "growth for all" and "tangible results." Minister Han focused on shifting the ministry's policy paradigm from a "protection-oriented" approach to one centered on "growth." As her achievements have been recognized with her nomination for Prime Minister, it is expected that the ministry will continue to prioritize growth and investment going forward.

Minister Han's flagship policy is the "Startup Project for All." The revitalization of the startup ecosystem, cited as a tangible result, is also based on this policy. According to the Ministry of SMEs and Startups on June 8, this program lowered the barriers so that anyone in the country could take on the challenge of starting a business, attracting as many as 63,000 applicants—a record for a government competition. The ministry plans to announce 5,000 innovative entrepreneurs in mid-June and will support them through mentoring and other initiatives to help their ideas become businesses. In addition, the "Second Startup Project for All," which will select twice as many—10,000 people—compared to the first round, is scheduled to begin in July.

Along with the "Startup Project for All," which supplies human resources to the startup ecosystem, Minister Han also designated regional hub startup cities to establish infrastructure. This was to spread the entrepreneurial spirit nationwide. In the first half of this year, four cities—Daejeon, Daegu, Gwangju, and Ulsan—where the four major institutes of science and technology are located, were designated as priorities, with comprehensive support provided throughout the entire startup cycle, from launch and technology development to investment and market entry. The plan is to select six more regions by 2027 and expand the program nationwide. To drive this major project, which is at the heart of the government's vision for a national startup era, it is said that a deep understanding of the startup ecosystem and strong execution are needed in future leadership as well.

According to the SME sector and others, Minister Han, a former CEO of an information technology company, was able to deliver results in her first public office thanks to her "active communication and understanding of the field." In her first year after taking office, she visited the field nearly 160 times, which led to the implementation of 23 measures and the improvement of 78 laws and systems. The Korea Federation of SMEs commented that "Minister Han is the right person to overcome polarization and the triple high phenomena—high interest rates, high inflation, and high exchange rates—and lead growth for all, as she has worked closely with the field for the growth of SMEs, venture businesses, and small business owners, the foundation of people's livelihoods," explaining her nomination as Prime Minister.

The Korea Venture Business Association also described her as "a practical leader who understands the frontlines of private sector innovation better than anyone and has led digital transformation and technological innovation." The business community hopes that this policy direction of the ministry will continue under the "post-Han Seong-sook" administration. The Korea Federation of Micro Enterprises stated, "We hope that the new Minister of SMEs and Startups will be a practical field expert who inherits the policy direction of Prime Minister nominee Han."

For the time being, the Ministry of SMEs and Startups is expected to be operated under the acting leadership of First Vice Minister Noh Yongseok. In fact, the special performance award ceremony for ministry staff, which Minister Han was scheduled to attend on the morning of June 8, was presided over by the First Vice Minister instead.

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