Lee Jae-myung: "One-stop Support and Regulatory Innovation for Startups... Major Government Investment"

Kospo's 'Startup Policy Talk' Invitation on the 8th
Sympathy for Administrative Rigidity Issues... "Regulatory Rationalization"
"Startups Violating Rules Excluded from Support"

Lee Jae-myung, the Democratic Party presidential candidate, is taking a commemorative photo with participants after finishing the startup policy talk on the 8th.
[Photo by Kospo]

[Asia Economy Reporter Kim Bo-kyung] Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, met with startup founders on the 8th and expressed his views on regulatory innovation, nurturing future talent, and dismantling bureaucracy. The founders conveyed various difficulties they experienced on the ground and emphasized the need for a national strategy to foster the growth of the startup ecosystem.

The Korea Startup Forum (Kospo) hosted a 'Startup Policy Talk' on the 8th at Fast Five Seoul Forest branch in Seoul, inviting candidate Lee.

Candidate Lee opened by saying, "Our economy depends on you," and highly evaluated the value of startups amid the changing industrial environment. He said, "Innovative startups play a significant role in the era of digital transformation," adding, "Young people prefer startups over traditional large corporations."

He continued, "We must create a society where failure can be turned into an asset," and stated, "The nation must take major responsibility for nurturing future-oriented talent."

Candidate Lee expressed his determination that the government should make large-scale investments to help startups grow. He said, "The core role of the government is to create a free space where the market functions properly and innovation and creativity can be exercised." Referring to U.S. President Roosevelt's New Deal policy to overcome the Great Depression and recent President Joe Biden's infrastructure investment plans, he argued, "The time has come to increase national responsibility and make massive investments."

He also expressed the opinion that regulation should shift from a 'positive regulation' system, which prohibits everything except what is allowed by law or policy, to a 'negative regulation' system that allows market participants to try various things. Candidate Lee said, "The pace of social change is now faster than before, making it difficult for administrative bureaucrats and public officials to predict," adding, "Going forward, the government's regulatory direction needs to change to a negative system." He added, "It is necessary to rationalize regulations by specifying a few prohibitions and allowing freedom of action otherwise."

Choi Sung-jin, CEO of Kospo, representing the founders, presented policy suggestions to candidate Lee, including bold regulatory innovation, fostering innovative talent, respect for founders, and investment in data, platforms, and networks. He said, "Innovation should not be delayed nor global competitiveness weakened due to conflicts surrounding new industries," and expressed hope that "a new national strategy will be prepared to provide opportunities and enable startups to grow over the next five years."

On that day, startup leaders emphasized the need for regulatory innovation and the elimination of excessive bureaucracy by the government. Kim Seul-ah, CEO of Kurly, said, "Because the positive regulation system is in place, different government agencies often have differing opinions on specific issues," advising, "If the regulatory direction changes, authorities will be able to enforce laws more flexibly."

Kim Beom-jun, CEO of Woowa Brothers, also said, "Globally, attempts to operate robot delivery are progressing rapidly," adding, "Changing from a positive regulation format will allow the creation of diverse values."

Lee Hyo-jin, CEO of 8 Percent, requested, "Please help new financial technologies develop by strengthening rewards for innovation achievements within financial authorities, just like in private companies."

After listening to the participants' remarks, candidate Lee said, "Due to administrative rigidity, those starting new businesses face many difficulties," and suggested, "It would be good to rationalize regulations overall and introduce a 'one-stop support system' where the first receiving agency comprehensively reviews the issues."

He said that administrative tasks for startups to receive government support should be simplified, but strong sanctions are necessary for companies that violate regulations.

Candidate Lee said, "There are many cases where sanctions are weak and ineffective even when government regulations are violated," and added, "Strong sanctions are needed, such as a 'one-strike-out' system that completely excludes those who intentionally break the rules from future support."

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