[2020 National Audit] The Ministry of SMEs Focuses on Small Business Owners... 4-Term Minister Park Young-sun Shows 'Composure' (Comprehensive)

Park Young-sun, Minister of SMEs and Startups, is attending the Ministry of SMEs and Startups audit at the Industry, Trade, and Energy Committee held at the National Assembly on the 8th. Photo by National Assembly broadcast screen capture

[Asia Economy Reporter Moon Hyewon] On the 8th, the National Assembly’s Industry, Trade, Energy, Small and Medium Venture Business Committee held a national audit of the Ministry of SMEs and Startups, where policies related to the survival rights of small business owners drew attention. Minister Park Young-sun, a four-term National Assembly member, demonstrated her experience by responding to first-term lawmakers from both ruling and opposition parties with composed actions and refined answers.

The first questioner of the day, Lee Dong-joo of the Democratic Party, opened the session by addressing the unification of the policy fund loan system for small business owners severely impacted by the COVID-19 pandemic.

Regarding Lee’s point that “the Small Enterprise and Market Service issued confirmation letters for support targets amounting to three times the budget allocated, causing confusion on the ground,” Minister Park acknowledged some design issues in the policy funds by stating, “There was speculative demand,” but added, “However, about half of the pointed-out problems have been improved at this point. Absolute cooperation from the National Tax Service is necessary for system unification.”

In response to People Power Party lawmaker Choi Seung-jae’s criticism of “the infringement on traditional market commercial districts caused by mid-sized marts dominating local markets,” Park replied cautiously, “We need to look more closely at whether mid-sized marts should be classified as small businesses and SMEs or whether the issue should be addressed on the same level with the same concept, and whether there are coexistence measures.” However, she also agreed with Democratic Party lawmaker Shin Young-dae’s question pointing out “some companies in the blind spots of the coexistence law,” saying, “As you pointed out, the coexistence law does not reflect the current times.”

Regarding Shin’s question about solutions to the monopolization problem of delivery app platform companies in relation to large and small business cooperation, Minister Park said, “The biggest drawback of the digital economy is that only the strong survive, and monopolization is always lurking,” adding, “I have raised concerns about the monopolization of online platform operators even at the Cabinet meeting, and I hope this will be an opportunity to strengthen the coexistence cooperation law through more communication with the National Assembly on monopoly prevention issues.”

To Democratic Party lawmaker Jung Tae-ho’s criticism that “venture investment performance is slower than the first venture boom in 2000 due to excessive loan documentation and screening procedures,” she expressed agreement, saying, “I will actively review the points you raised,” and “I really appreciate you suggesting alternatives.”

The opposition’s aggressive questioning, which somewhat unsettled the composed Minister Park, also drew attention. Leading the front line, People Power Party lawmaker Han Moo-kyung pointed out, “At a presidential event held in Thailand last year, the Ministry of SMEs and Startups signed an unusual sole-source contract with 'No Boundary,' known to have been established by an aide to Tak Hyun-min, the Blue House Protocol Secretary. Was this preferential treatment?” In response, Minister Park said, “I understand that opposition lawmakers raise such issues during the audit,” but firmly stated, “This was not decided under anyone’s instruction. The sole-source contract with No Boundary was made during the process of hiring experts, and I think it is excessive to view this with suspicion.”

Regarding People Power Party lawmaker Kim Jung-jae’s criticism that “the ‘Value Buy’ market project held on Yonsei-ro last Christmas cost 2.38 billion won, mostly spent on celebrity appearance fees and event management fees. Stop Park Young-sun-style advertising,” Minister Park responded, “It is true that the Christmas event was organized hastily,” but added, “The Small Business Association, Shopping District Association, and Traditional Market Shopping District Association requested a venue to hold promotional events during the year-end.”

On the designation of the used car sales industry as a livelihood-type suitable business and the establishment of coexistence measures between large and small businesses, lawmakers from both ruling and opposition parties focused their questions on related witnesses. Minister Park showed enthusiasm by answering questions directed at her from lawmakers while also directly questioning the witnesses.

Minister Park expressed to the witnesses, Kim Dong-wook, Executive Director of Hyundai Motor Company, and Kwak Tae-hoon, Chairman of the Korea Automobile Sales Business Association Federation, “Since the session is underway, I would like to ask a question,” and suggested that the Ministry’s Cooperation Division provide a response regarding “how far Hyundai Motor is considering an open platform related to used car sales.”

She further emphasized, “If Hyundai seeks to make a profit, coexistence will be difficult, but if it is for industrial competitiveness, coexistence may be possible. Consumers’ satisfaction will increase through the open platform, and used car businesses may reduce after-service costs. The link for coexistence might be found here.”

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