Lee Young, from Tearful Minister to Minister Giving Resonance to Female Entrepreneurs

Interview with Lee Young, Minister of SMEs and Startups
Faced Hostile M&A Demand Just 2 Years After Startup
Emotional Response During Hearing
"20 Years of Business... Memories Like a Dragon's Scale Came to Mind"

Lee Young, Minister of SMEs and Startups / Photo by Jin-Hyung Kang aymsdream@

The founder, who was under prosecution investigation after being targeted by corporate raiders, choked up at the ministerial candidate hearing. Later, as a female minister, she stood before female entrepreneurs and brought tears to their eyes.

This is the story of Lee Young, Minister of SMEs and Startups. In a recent interview with Asia Economy, Minister Lee shared the hardships she faced while running a venture company, her feelings during the parliamentary confirmation hearing, and her communication with entrepreneurs on the ground.

"I was under prosecution investigation for seven months."

Minister Lee is a former venture entrepreneur. In 2000, she founded ‘Terten,’ a security software specialist company. Within two years of founding, she secured institutional investment through an investor. Along with Terten, seven startups nationwide attracted investment as a result of winning awards in competitions. It turned out that the investor was a typical corporate raider who attempted a hostile takeover.

Minister Lee said, "Half a year after investing, they filed a criminal lawsuit on charges of breach of trust," adding, "They told me to sell off my company shares and leave, offering 400 million won." Because of this, she underwent prosecution investigation for seven months. Fortunately, she won the case and was able to protect the company. "Then they said they would file a civil lawsuit. They kindly explained that criminal lawsuits can use company funds, but civil lawsuits require personal funds. (laughs)" The young female CEO was indeed scared by the corporate raider’s threats. Still, she fought and ultimately won.

Although she endured painful times rebuilding the company, she gained valuable lessons. She said, "Venture capital (VC) also needs to be carefully selected." It is important to meet investors who can advise founders on how to cope during critical moments. Her words carried weight as they came from experience. Minister Lee said, "In 20 years of running a business, what I remember most is not the joy of success but the prosecution investigation and the restructuring during the 2008 economic crisis."

"It felt like my entire life was being denied."

Last May, during the confirmation hearing as a ministerial candidate, she shed tears while being questioned. Opposition lawmakers focused their attacks on her past career. They criticized her journey from entrepreneur to holding various positions in government committees and private associations, her candidacy as number 30 on the proportional representation list in the 20th National Assembly where she lost, and her election as a proportional representative in the 21st National Assembly.

When an opposition lawmaker snapped, "Do not use the Ministry of SMEs and Startups as a means for personal advancement," the then-candidate Lee responded with a trembling voice, "I did not build my credentials or use the company I founded to enter politics." The scene of her tearful response made the evening news. Minister Lee described her feelings at that time as "It felt like my entire life was being denied." She added, "After about 20 years in business, there are memories like a taboo. I was supposed to focus on the hearing, but past memories surfaced and shook my emotions." She also noted, "It wasn’t just because of what I heard at the hearing."

Minister Lee said she received comments from acquaintances who watched the hearing, saying things like, ‘Why was Lee Young like that today?’ and ‘She acted out of character.’ They said she normally wouldn’t be shaken by such things, so it was unusual.

The tearful candidate became a minister who moves others to tears within six months of taking office.

In October last year, she attended the ‘National Women CEO Management Training’ hosted by the Korea Women Entrepreneurs Association in Ulsan. She gave a lecture in front of about 1,000 female entrepreneurs gathered from across the country. She poured out her heart, sharing experiences such as having to lay off employees due to the economic crisis while managing Terten, crying alone in her car, and the frustration of developing good products that did not sell in the market.

Minister Lee said, "I heard from a local lawmaker that a female entrepreneur who attended that lecture cried." She added, "Entrepreneurs understand each other’s hardships. It was like hearing someone say, ‘It’s tough, isn’t it?’ while gently patting your shoulder, and that’s why she burst into tears." Minister Lee is known for openly sharing the difficulties she has experienced as a female entrepreneur at official events and striving to translate those experiences into institutional improvements.

At a National Assembly policy forum held last July during Women Entrepreneurs Week, she said, "Whether borrowing funds, applying for loans, or meeting customers, it was always men. I thought how great it would be if I had attended an all-boys high school or served in the military. Although many legal barriers have disappeared now, there is still no infrastructure like oxygen. It’s easier to run on a men’s course with many players, but we keep stumbling over stones and weeds. As a female entrepreneur, I will represent voices from the field and work to improve systems. Strategic nurturing of women-owned businesses is necessary for national interests."

Minister Lee is actively engaged in ‘economic diplomacy’ alongside President Yoon Suk-yeol, who is on a state visit to the United Arab Emirates (UAE), and an economic delegation composed of about 100 companies. On the 19th (local time), she will attend the World Economic Forum Annual Meeting (Davos Forum) to participate in discussions and presentations on the topic of ‘The Future of Industrial Policy.’

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