[Initial Perspective] Responsible CEO and Ministry of SMEs and Startups

[Asia Economy Kim Daeseop, Deputy Director of the Ministry of SMEs and Startups] I met a domestic venture 1.5 generation CEO who once heated up the venture industry. This well-known CEO in the venture industry acquired a domestic company that was doing well in the smartphone market in the mid-2010s but faced difficulties due to deteriorating financial soundness, taking on its debt. One of the reasons for the acquisition was the concern that if this domestic company, which was demonstrating competitiveness in overseas markets through advanced technology, went bankrupt, it would negatively impact national competitiveness.

This venture entrepreneur sought various measures, including exploring overseas markets for two years, striving to normalize management. However, due to external environmental changes and an increase in debt scale, he eventually decided to sell the company. Afterward, suspicions arose regarding the acquisition and sale process, such as "a planned eat-and-run" and "focusing only on patents rather than normalization."

Acquaintances of this entrepreneur lamented why he did not actively clarify the facts externally, saying that the suspicions were untrue. I had several phone calls with this CEO at the time. Each time, I felt that he believed such perspectives were part of the responsibilities that a CEO must bear. He must have felt unfair about being viewed with negative suspicion. However, the reason he did not actively clarify externally was that he thought all management activities of the company ultimately were responsibilities the CEO must carry.

I met this entrepreneur again after several years and heard how he had been doing. Through the conversation, I also learned the inside story at that time. There were probably shareholders and employees who suffered damages during the company's sale process. But I also thought that he must have experienced unfairness and damage while being viewed with negative suspicion.

A figure came to mind when meeting this entrepreneur. Someone who also emphasizes "responsibility." Before the 21st general election, there were rumors that Park Young-sun, Minister of SMEs and Startups, might run. Many people thought so. However, Minister Park declared she would not run in the general election.

Afterward, I met Minister Park. I was curious about her reason for not running. She explained that after becoming the Minister of SMEs and Startups, she was creating and promoting various new policies and wanted to take responsibility until the end. I felt the sense of responsibility as the minister in charge of policies for small and medium enterprises and small business owners. At that time, her stance was contrasted with that of heads of affiliated organizations who resigned to run in the general election despite having remaining terms.

Heavy rains have caused repeated flooding damage. Roads and farmland have been submerged, and landslides have occurred, causing severe damage to houses, factories, and facilities. Damage to traditional markets and small businesses is also increasing. Numerous traditional markets nationwide were flooded, causing significant losses to merchants. Some small businesses suffered hundreds of millions of won in damages when landslide debris covered parts of their factories.

Amid the difficulties faced by companies and merchants due to decreased sales from the impact of the novel coronavirus infection (COVID-19), the flooding damage from heavy rains has overlapped. Although a natural disaster, if the government and local governments had paid more attention to maintaining safety facilities in preparation for the monsoon season's heavy rains, the damage could have been reduced.

The Ministry of SMEs and Startups is preparing and implementing measures to support the recovery of small businesses and small merchants affected by the heavy rains. For small businesses in special disaster areas, support includes increased special guarantee ratios, preferential guarantee fees, and expanded guarantee limits. For small merchants, emergency management stabilization funds and special disaster small merchant guarantees are provided to support funds necessary for damage recovery.

Recently, public interest has been gathering around Minister Park’s possible candidacy for Seoul mayor. Minister Park is likely well aware of this interest. It will be interesting to see how she carefully considers and makes her final decision. For now, as the minister in charge, it is important to comfort small businesses and small merchants affected by the heavy rains and mobilize all policy capabilities. She should quickly head to the flood recovery sites.

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