[2021 National Audit] Kwon Chil-seung: "Manufacturing Future Uncertain Without Smart Factories... Strict Punishment Needed for Fraud Cases" (Comprehensive)

2021 Ministry of SMEs and Startups National Assembly Audit

[Image source=Yonhap News]

[Asia Economy Reporter Junhyung Lee] Kwon Chil-seung, Minister of SMEs and Startups, stated, "Cases of fraudulent receipt of subsidies for smart factories must be severely punished," adding, "(However) I believe the smart factory project, which has been ongoing since the Park Geun-hye administration, is a well-chosen policy."

Minister Kwon made these remarks on the 7th during the Ministry of SMEs and Startups' audit at the National Assembly, responding to Lee Cheol-gyu, a member of the People Power Party, who pointed out that "there are quite a few cases of fraudulent subsidy receipt in the smart factory construction project." Lee stated, "Up to last year, government funding amounting to 1.0669 trillion won was invested in the smart factory construction project," and "more than 50% of the 271 workplaces subject to inspection were found to have fraudulent cases."

In response, Minister Kwon said, "The problems in the smart factory project must be corrected," but added, "Without this kind of manufacturing innovation, I believe the future of South Korea's manufacturing industry is almost nonexistent." He further noted, "Advanced countries like Germany are also investing a lot of money in manufacturing innovation," and added, "(Cases of fraudulent receipt, etc.) are matters that, even if we have to use a whip, must be steadily pursued with affection."

Earlier, Minister Kwon also mentioned the conflict between the legal service platform 'Rotok' and the Korean Bar Association. He said, "We are unofficially listening to the difficulties of startups and internally preparing what we can," and "Around the 13th of this month, we plan to arrange a meeting with the Ministers of Justice and Health and Welfare to discuss related issues with startups." He added, "Platforms related to local small businesses and those related to professionals should be approached differently," and "It is appropriate to ease regulations on platforms related to professionals."

Regarding Lee So-young, a member of the Democratic Party, who pointed out that "according to the revised internal regulations by the Bar Association, almost all legal tech startups have to give up their business," Minister Kwon replied, "The Ministry of SMEs and Startups is not a regulatory agency, so there are limits to raising our voice on issues related to Rotok." He also said, "Nevertheless, the Ministry of SMEs and Startups has played a significant role in helping these companies grow until now," and added, "There is some delay in preparing for the meeting on the 13th."

Minister Kwon Chil-seung of the Ministry of SMEs and Startups responding
(Seoul=Yonhap News) Reporter Ha Sa-heon = Minister Kwon Chil-seung of the Ministry of SMEs and Startups is answering questions from lawmakers during the National Assembly inspection of the Ministry of SMEs and Startups held on October 7 at the National Assembly in Yeouido, Seoul. 2021.10.7 [Photo by the National Assembly Press Photographers Group]
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He also emphasized the necessity of 'With Corona.' Minister Kwon said, "I have repeatedly argued that the quarantine system should move to 'With Corona,'" adding, "The attitude toward COVID-19 when there were no vaccines at all and now when vaccines are available must be different." He continued, "I believe the quarantine authorities will soon adjust the quarantine level to 'With Corona,'" and said, "If the COVID-19 situation worsens, quarantine rules will be strengthened, but I hope there will be social consensus so that the burden does not fall disproportionately on one social class."

On the same day, Yoon Young-seok, a member of the People Power Party, criticized, "It is time to discard Moon Jae-in's K-quarantine, which unilaterally forces self-employed people to sacrifice," and said, "Self-employed people have been crying out, but the Ministry of SMEs and Startups, which should represent their voices, seems to have no presence at all."

In response, Minister Kwon said, "I believe I have raised many voices for self-employed people within the government," and "I think I was the first government official to advocate for 'With Corona.'" He added, "We now need to shift management indicators to focus on COVID-19 excess mortality and fatality rates," and "I have raised these opinions frequently in internal government meetings."

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