Lee So-young tapped as SMEs minister after two-month vacancy

Nominee brings National Assembly committee experience and legal background

Track record on SME and startup policy spans 21st and 22nd Assembly terms

Incumbent two-term lawmaker seen as strong legislative bridge between parliament and government

Born in 1985, she would become a minister in her 40s if confirmed

Cheong Wa Dae Chief of Staff Kang Hoon-sik announced Sunday that Democratic Party of Korea lawmaker Lee So-young has been nominated as minister of SMEs and Startups. Lee, born in 1985, is a lawyer-turned-politician serving her second term in the National Assembly. [Lee So-young's office]

The nomination of Democratic Party of Korea lawmaker Lee So-young as minister of SMEs and Startups has drawn attention for what it signals about President Lee Jae Myung's priorities. The president chose an incumbent two-term lawmaker to end a 61-day leadership vacuum at the ministry that began when Prime Minister Han Seong-sook stepped down from the ministerial post on June 30.

Industry observers say Lee's experience on the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee — where she worked on small and medium-sized enterprise and venture policy — was a key factor in her selection. Her youth and identity as a female politician born in 1985, combined with the legislative and budget-coordination experience she has built over two terms, are also cited as strengths.

Committee veteran, lawyer and young female politician

Cheong Wa Dae announced Sunday that Lee had been designated as the nominee for the post. Chief of Staff Kang Hoon-sik, briefing reporters that day, described her as "a principled two-term Assembly member who has actively pursued legislation supporting startups and protecting small business owners, building broad policy experience ranging from innovation-driven growth to the everyday economy."

Lee has hands-on Assembly experience with SME, venture and startup policy. She served on the Trade, Industry, Energy, SMEs and Startups Committee during the 21st National Assembly, and in the 22nd Assembly she joined Unicorn Farm, a bipartisan research caucus focused on startups and venture companies. Unicorn Farm is an Assembly study group that discusses legislative and policy tasks aimed at easing regulations in new industries and energizing the venture and startup ecosystem.

Her legal background is also seen as an asset for leading a ministry where policy coordination and legislation are central. Lee graduated from Sungkyunkwan University's law school and passed the 51st bar examination in 2009. After completing judicial training, she worked as an attorney at Kim & Chang before moving into climate and environmental work. She won a seat in the National Assembly in the 2020 general election, running in the Uiwang-Gwacheon constituency in Gyeonggi Province, and won re-election in the 2024 general election.

The Ministry of SMEs and Startups handles not only support for small businesses and self-employed owners but also contentious issues such as venture and startup deregulation, cooperative partnerships and a cost-linkage system for supplier payments. There is expectation that Lee, as an incumbent two-term lawmaker, can serve as an effective policy bridge between the Assembly and the government.

Her profile as a young female politician is also drawing notice. Born in 1985, Lee would lead the ministry as a female minister in her 40s if confirmed through the Assembly's confirmation hearing — a development observers say carries symbolic weight in terms of cabinet diversity and generational renewal.

Two-month vacancy set to end — but challenges await

The nomination is expected to close the two-month leadership gap at the ministry. Since Han stepped down from the ministerial post on June 30, the ministry has been run by First Vice Minister Noh Yong-seok in an acting capacity. With operating conditions for small businesses and self-employed owners remaining difficult, and major pending issues piling up — including venture and startup policy and a restructuring of SME support programs — industry voices had been calling for a swift ministerial appointment.

Should Lee clear the confirmation hearing and take office, she will face a substantial to-do list from the outset. She will need to help small businesses and self-employed owners recover from sluggish domestic demand and rising costs, while at the same time boosting SME productivity and competitiveness in response to structural shifts such as the AI transition. Drawing additional private capital into the venture investment market, which has shown signs of recovery recently, and supporting domestic startups in scaling up and expanding overseas are also key priorities. Ensuring the stable operation of the government's "Everyone's Startup Project" and building a follow-up support framework are likewise expected to fall on her plate.

Lee addressed her nomination Sunday through her SNS account. "South Korea needs a new path to growth, and I believe that path — from start to finish — must run through small and medium-sized venture companies," she wrote. "I will dedicate myself to building a receptive foundation for innovation and advancing toward an 'innovation nation' where the creativity and ideas of our people flow freely into change in the world."

boo@heraldcorp.com