Asked About Startup Policies... Lee "Sandbox Improvement" Yoon "Expansion of Working Hours Flexibility"

Kospo 'Startups Ask, Presidential Candidates Answer' Policy Inquiry
Lee Jae-myung "Maximize Autonomy for Innovative Companies... Shift to Negative Regulation"
Yoon Seok-youl "Fully Fund Digital Talent Development... Expand Work Hour Flexibility"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Korea Startup Forum, a private startup organization, announced the results of the policy inquiry titled 'Startups Ask, Presidential Candidates Answer,' requested from presidential candidates Lee Jae-myung of the Democratic Party and Yoon Seok-youl of the People Power Party, on the 7th.

This policy inquiry consisted of six areas related to the digital economy and startups. Specifically, these were ▲ Establishment and implementation of a national digital economy strategy ▲ Regulatory innovation ▲ Talent development ▲ Creating a favorable environment for startups ▲ Labor environment suited to startup realities ▲ Support for regional startup ecosystems.

In their responses to the policy inquiry, both candidates agreed that a private-led and government-assisted approach is essential to adapt to changes in the era of digital transformation. They acknowledged the need to establish a private-led industrial regulation review and evaluation body and agreed on the innovation of public education for talent development.

A Korea Startup Forum official commented, "It was an opportunity to confirm the candidates' startup policy visions and directions for fostering startups." The forum organized the inquiries and the candidates' answers in a Q&A format.

- Please share your position on the installation and operation of an innovation organization within the Blue House, overseeing cross-ministerial coordination and communication with related companies.

▲ Lee Jae-myung = I will establish an organization to formulate and promote IT and software-based digital technology innovation and a nationwide digital transformation strategy. We will coordinate overlapping and similar projects among ministries and build a collaborative system to serve as a digital regulation control tower. In particular, we will promote the permanent establishment of a presidential regulatory conflict resolution body to resolve conflicts between new and old industries.

▲ Yoon Seok-youl = We will integrate all government ministry websites and connect them with local governments and affiliated agency sites. We aim to create an agile government that proactively predicts and responds to citizens' needs and issues revealed through big data analysis.

- Please explain your approach to a policy implementation method led by the private sector with government assistance and measures to prevent adverse effects of public market intervention.

▲ Lee = The private-led and government-assisted approach is essential to keep pace with rapid technological and market changes and to grow into competitive new businesses. We will guarantee autonomy and support for innovative companies to grow while minimizing interference. We will actively promote this approach in future core industries such as ICT and K-content. However, as seen in the public delivery app launch during my time as Gyeonggi Province governor, if monopolies harm public convenience and block market competition, the government must actively intervene to support a virtuous ecosystem.

▲ Yoon = I believe the private sector plays the main role in innovative economic growth. The government should provide tax, financial, and institutional support to foster a new industry ecosystem and cultivate the necessary talent.

Yoon Seok-yeol, the People Power Party's presidential candidate, is delivering a speech appealing for support at the final campaign rally held at Seoul Plaza on the 8th. Photo by National Assembly Press Photographers Group

- Please share your views on improving the regulatory sandbox system for bold regulatory innovation, the establishment of a private-led industrial regulation review and evaluation body, and the mandatory implementation of regulatory impact assessments for all bills.

▲ Lee = The demonstration exception has strict conditions and limitations that prevent proper profit-making businesses. I understand that the regulatory sandbox system is complicated to apply for and costly for entrepreneurs. We will thoroughly improve the regulatory sandbox system.

We will convert positive regulations to negative ones and designate a digital regulation control tower to eliminate excessive and overlapping regulations. We will actively consider establishing a private-led industrial regulation review and evaluation body. Regarding mandatory regulatory impact assessments for legislative bills, we hope the National Assembly will actively discuss this, considering the aspect of legislative authority infringement.

▲ Yoon = I consider regulations as cancerous entities that hinder social development. We will create a dedicated body for regulatory impact analysis and review regulations that obstruct job creation from the ground up. Through regulatory innovation, we will revitalize corporate investment and create quality jobs by fostering an employment-friendly environment.

- Bold innovation in public education curricula is necessary to respond to the workforce demand arising from the digital economy transition.

▲ Lee = We will conduct substantial software and artificial intelligence (AI) education in schools. Starting from elementary schools, we will operate systematic experiential learning programs ranging from interest-inducing activities (games, metaverse) to basic (SW block coding) and advanced (algorithms) courses. We will secure one IT teacher per middle and high school and expand mandatory IT subject hours to once a week (about 34 hours annually). We will fully support universities and students and strengthen young digital talent capabilities through re-education for workers and job seekers.

▲ Yoon = New education is needed to nurture talent suitable for future society. We will expand universal software education in elementary and secondary schools and increase digital departments such as AI, software, data, and semiconductors in universities. We will nurture fully government-funded digital prodigies regardless of age or academic background at digital gifted schools.

- Please share your position on promoting more relaxed corporate venture capital (CVC) investments led by large corporations and the swift introduction of a multiple voting rights system.

▲ Lee = We will spare no policy support to enable large corporations within the startup ecosystem to nurture and support promising startups through CVCs to create new technologies and markets.

▲ Yoon = We will revise corporate laws to align with the global corporate environment, including introducing a multiple voting rights system for venture companies, to strengthen corporate vitality and competitiveness.

- Do you think a new labor system that can be flexibly applied to startups and innovative companies is necessary?

▲ Lee = Currently, flexibility is exercised to allow work exceeding 52 hours per week for specific periods when necessary. Since startups and innovative companies require flexible work, they can utilize flexible work systems such as selective work, telecommuting, and remote work. The government is currently conducting infrastructure building and indirect labor cost support projects for companies to spread a work-life balance employment culture.

▲ Yoon = We will expand labor time flexibility by including newly established startups in industries exempt from extended work hours or special extended work and guarantee workers' choice rights.

- Please present your position on creating regional startup funds, fostering regional innovative talent, and providing incentives to attract talent from other regions to support regional startup ecosystems.

▲ Lee = We will promote the 'Global Unicorn 100' project utilizing regulatory free zones by regional hubs. Including regional innovation support institutions, we will jointly create cloud funds with the private sector and government and induce private investment companies to expand investments in regional startups.

We will establish a 1 trillion won startup solidarity fund jointly by senior startups, government, and local governments. Senior startups will select and support youth startups outside the metropolitan area, and tax benefits such as corporate tax reductions will be granted to senior companies to revitalize the regional venture ecosystem.

We plan to expand the Small and Medium Business Ombudsman to 17 metropolitan local governments to observe and resolve local government regulations. We will build regional SME R&D demonstration centers linked to each regional regulatory free zone and establish a platform utilizing demonstration spaces within public institutions.

▲ Yoon = We plan to focus on nurturing small and strong cities and link them with the five major super-regional megacities through an integrated smart regional development strategy. We will create global innovation zones centered on regional new industry sectors by area.

Meanwhile, Korea Startup Forum released a booklet titled 'A Good Country for Startups: 11 Major Tasks and 40 Policies,' which compiles and analyzes research data and industry opinions. It presents policy directions and alternatives for advancing as a leading digital economy nation and plans to deliver it to the transition team formed after the presidential election to request incorporation into national agendas.

A Korea Startup Forum official stated, "Going forward, aiming to become a 'leading digital economy nation' and a 'good country for startups,' we will work to incorporate startup policies into national agendas and carry out legislation, institutionalization, and continuous policy activities."

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