Lee So-young answers questions during her confirmation hearing. Her appointment as minister of SMEs and Startups was approved Tuesday night, and she officially took office Wednesday. [Yonhap]
Lee So-young answers questions during her confirmation hearing. Her appointment as minister of SMEs and Startups was approved Tuesday night, and she officially took office Wednesday. [Yonhap]

Federation calls for regulatory reform, clearer role for SMEs in national growth strategy

Urges overhaul of unsustainable cost structures for small businesses, end to K-shaped polarization

Asks minister to listen to industry voices and deliver policies with real impact

The Korea Federation of SMEs welcomed the inauguration of Lee So-young as minister of SMEs and Startups on Wednesday, calling on her to prioritize regulatory reform and support for small and medium-sized enterprises' transition to AI.

The federation issued a statement titled "SME sector's views on the inauguration of Minister Lee So-young of the Ministry of SMEs and Startups," saying it "welcomes Minister Lee So-young's inauguration."

The federation said it hopes Lee will draw on her extensive legislative and budgetary experience to help small businesses and self-employed operators overcome compounding challenges — including high interest rates, elevated prices and sluggish domestic demand — and emerge as key drivers of economic growth.

The federation also called for improvements to regulations and cost structures. It urged Lee to follow through on commitments made during her confirmation hearing by rationalizing regulations, spelling out a concrete role for SMEs in the country's core growth strategy, and overhauling the unsustainable cost structures facing small business owners — steps it said are essential to addressing the K-shaped polarization gripping the economy.

The federation said the government must also prepare for the risk that AI adoption could widen the gap between large conglomerates and smaller firms. "As the AI era arrives, polarization between large and small companies could deepen further," it said, urging the minister to concentrate policy resources on helping SMEs embrace AI and pursue digital innovation to strengthen their long-term competitiveness.

The federation further asked Lee to keep ground-level industry voices at the center of policymaking. Just as she visited SME organizations to hear their concerns while still a nominee, it said, it hopes she will continue listening to businesses on the front lines and deliver policies with tangible, dynamic impact.

The federation added that it would actively cooperate to help resolve the difficulties facing small businesses and self-employed operators.


hong@heraldcorp.com