Lee So-young pledges to reduce small business costs as SME Minister nominee

Lee So-young, the nominee for Minister of SMEs and Startups, outlined a comprehensive roadmap during her National Assembly confirmation hearing to alleviate the financial burdens on small business owners. Her plan includes addressing rising costs such as rent, interest, and delivery app fees by creating a systematic index to monitor and reduce these expenses. She also emphasized strengthening the competitiveness of public delivery apps and expanding social safety nets for the self-employed, including support for health care, industrial accident insurance, and employment insurance.

In the broader SME sector, Lee pledged to rationalize regulations and restore confidence in the KOSDAQ market to encourage new capital inflows. She expressed a commitment to finding solutions for regulatory hurdles regardless of which ministry holds jurisdiction. Additionally, she highlighted the importance of integrating SMEs into major national growth projects, specifically focusing on AI transition, carbon neutrality, and semiconductor development.

However, Lee faces scrutiny regarding potential contradictions between her past legislative actions and her new ministerial role. As a former lawmaker, she was a prominent advocate for the ‘Yellow Envelope Law’ to protect labor rights, a move heavily criticized by business associations. Since her nomination, she has also signaled a more cautious approach toward certain corporate regulations, such as the speed of KOSDAQ delisting standards and the 52-hour workweek, raising questions about how she will balance labor interests with the needs of the SME and venture sectors.