Top Advisory Body for SMEs and Ventures, 'Public-Private Policy Council,' Launched: "Focus on Restoring the Growth Ladder"

Lee Kwangjae Appointed Co-Chair of the Council
Council Composed of Four Subcommittees and 72 Members Including Business Leaders
Proposals Include SME Growth and AI Transformation, Revitalizing Venture Investments

A public-private policy council has been launched to review existing policies and develop new ones for small and medium enterprises, ventures, and small business owners. Priority issues mentioned include revising business standards to help overcome the so-called Peter Pan syndrome, as well as expanding venture investments by pension funds.

Minister Han Sung-sook of the Ministry of SMEs and Startups delivers a greeting at the launching ceremony of the 'Public-Private Policy Council for SMEs, Ventures, and Small Business Owners' held on the 5th at KBIZ Hall, Korea Federation of SMEs, Yeouido, Seoul. Ministry of SMEs and Startups

On March 5, the Ministry of SMEs and Startups held an inauguration ceremony for the "Public-Private Policy Council for Small and Medium Enterprises, Ventures, and Small Businesses" (hereafter referred to as the Public-Private Policy Council) at the Korea Federation of SMEs in Yeouido. The Council was established to actively incorporate the opinions of private sector experts, review the policy tasks already announced by the Ministry, and identify new policy initiatives.

The Public-Private Policy Council consists of four subcommittees: Small and Medium Enterprises, Startups & Ventures, Small Businesses, and Mutual Growth & Fairness. It is comprised of 72 members, including business leaders, venture capitalists, academics, and representatives of associations and organizations, and will operate for one year. Han Seongsook, Minister of SMEs and Startups, and Lee Kwangjae, former Secretary General of the National Assembly, will serve as co-chairs. The chairs of each subcommittee are: Cho Wonpyo, CEO of Messe Esang; Song Byungjun, President of the Korea Venture Business Association; Lee Byungseon, CEO of Jeju Center for Creative Economy & Innovation; and Hong Jangwon, Managing Partner of Hana Patent & Law Office.

The Ministry of SMEs and Startups has designated the Public-Private Policy Council as its highest advisory body and plans to operate it for one year. The Council will review and execute policies through quarterly plenary meetings and regular subcommittee meetings.

Minister Han Seongsook stated, "With K-shaped growth, worsening conditions in the Middle East, and a challenging global environment, economic difficulties are mounting. In order for SMEs, ventures, and small business owners to secure competitiveness, we aim to develop and implement well-structured policies that better reflect the opinions of private sector experts." She added, "Please review the policies created by the Ministry and help identify new tasks to address any gaps."

Minister Han also emphasized, "The Ministry will shift its SME support policies to focus on 'growth' by restoring the growth ladder and operating in a performance-driven direction. We will provide differentiated policies for high-growth and stagnant companies. For regional startups and SMEs, we will aggressively pursue policies to foster ecosystems, such as increasing the support ratio under the regional quota system. We will also focus on enhancing productivity through the AI transformation (AX) of SMEs and AI support for small business owners."

On the 5th, committee members who participated in the launch ceremony of the Public-Private Policy Council for Small and Medium Enterprises, Ventures, and Small Business Owners held at the Korea Federation of SMEs are taking a commemorative photo. Ministry of SMEs and Startups

Prior to the inauguration ceremony, the Ministry collected more than 50 policy proposals from the Council members. The main policy initiatives include: accelerating growth for SMEs and the major transition to AI and AX, revitalizing venture investment and the KOSDAQ market, and providing AI education for small business owners.

Co-chair Lee Kwangjae highlighted five key issues for discussion: overcoming the Peter Pan syndrome, introducing an immediate payment system for supply prices, attracting venture investment funds from sources such as pension funds, preventing technology theft, and transitioning from a subsidy-dependent structure to an investment-driven virtuous economic cycle.

Chair Lee explained, "We must overcome the Peter Pan syndrome caused by the separation of large, mid-sized, and small enterprises. When a company becomes mid-sized, it faces increased regulation and loses subsidies. We need to revise this standard to align with global norms. If we change this standard, it could result in 4 to 5 percent GDP growth. The speed of money circulation is the speed of economic growth, so it's necessary to overcome the time lag between sales and cash. In Korea, the speed at which sales are converted into cash is slower than in the US, so we need to quickly establish a factoring system. Currently, value-added tax is settled quarterly, but if it's changed to a monthly basis, it could bring about significant changes."

He continued, "This is my personal opinion, but in the venture sector, KOSPI and KOSDAQ should be separated, with supervisory authority assumed by the state. Like in Canada, Sweden, and Taiwan, bold steps must be taken to allow pension funds to be invested in ventures and the KOSDAQ, so that new future-oriented companies can emerge. For small business owners, it is crucial to create effective financial support for low-income earners. We should consider linking credit unions and community banks with regional credit guarantee foundations to establish practical financial support and consider creating a social solidarity bank to take responsibility for the social economy."

Minister Han commented, "Upon taking office as Minister, I noted the need for the policy organization to evolve to the next level. I hope this occasion, enhanced with greater expertise, will serve as a catalyst for that advancement."

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