Hansung Sook: "DX for SMEs Is a Matter of Survival... Will Push for Innovation Act"

Smart Factory Adoption Rate at 4%... "Expanding Budget for Basic Stage"
Connecting AI Startups with SMEs... Plans to Build an 'AX Ecosystem'
"Leveraging Private Sector Experience to Create Practical Transformation Policies"

Hansung Sook, nominee for Minister of SMEs and Startups, has presented digital transformation (DX) and AI-based production innovation as her core policy vision. She outlined a plan to establish a comprehensive support system for SMEs, ranging from the spread of basic-level smart factories to their advancement and the fostering of solution startups, through the enactment of the 'Smart Manufacturing Industry Innovation Act.'

At the confirmation hearing held at the National Assembly in Yeouido, Seoul on the 15th, Hansung Sook stated, "Smart factories among SMEs currently account for only about 4% of the total, and most are still at the basic stage." She emphasized, "To achieve AI-based advancement, it is essential to secure budgets for the basic stage and simultaneously establish a data infrastructure." She added, "We will build a three-stage support ecosystem, including connecting companies that already possess AI capabilities with small and medium manufacturers to identify 'AX (AI transformation) specialized suppliers.'"

Hansung Sook, nominee for Minister of SMEs and Startups, is answering questions from lawmakers at the confirmation hearing held at the Industry, Trade, Energy, Small and Medium Enterprises and Startups Committee plenary session in Yeouido, Seoul on the 15th. Photo by Yonhap News

In her opening remarks, she also expressed her commitment to promoting related legislation, saying, "We will foster ventures and startups in the AI sector, discover solution companies and promote the smart transformation of manufacturing firms, and establish a comprehensive plan to build a manufacturing data-based infrastructure."

She also placed significant emphasis on the digital transformation of small business owners. Hansung Sook mentioned her experience with 'Project Flower,' which supported the online expansion of traditional markets and neighborhood businesses during her time as CEO of Naver.

She said, "DX for small business owners must go beyond simply reducing costs and reach the level of interpreting data and identifying growth opportunities." She pointed out, "The digital transformation rate among small business owners remains at around 30 to 40%, but it needs to be raised to more than double the current level." She continued, "Many small business owners are not even familiar with digital concepts, so there is a need for practical policies to bridge this gap and for the development of customized tools for business operators."

Hansung Sook stated, "As a businessperson, I focused on mutual growth with partners to develop the company, but as a public official, I must first consider how to help those in urgent and desperate situations." She added, "The tasks of the Ministry of SMEs and Startups are all about solving on-the-ground issues, just like 'Project Flower.' I will responsibly address the challenges at hand based on my experience in the private sector."

She further commented, "The acceleration of the AI revolution and digital transformation is fundamentally changing the industrial paradigm, and companies that fail to adapt will find it difficult to grow in the market." She emphasized, "For SMEs and small business owners, digital transformation is an essential condition for survival and growth." She continued, "We will identify new cases like K-beauty, which achieved the top SME export ranking last year by leveraging innovation in manufacturing sites and K-soft power."

Meanwhile, the confirmation hearing concluded at around 11:30 p.m., approximately 13 hours and 30 minutes after it began. In the latter part of the hearing, opposition lawmakers focused their questioning on ethical issues. Topics included a 'workplace harassment' case that arose during her tenure as CEO of Naver, allegations regarding sponsorship of Seongnam FC, and issues related to tax payments such as improper inheritance. Hansung Sook responded, "There were aspects that did not meet the standards expected of a public official," and expressed her regret.

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