On June 26, Prime Minister nominee Han Seong-sook addressed the challenges facing small and medium-sized enterprises (SMEs). She emphasized that when SMEs falter, they often collapse entirely or lose their workforce, making recovery a lengthy process. It needs to prioritize research and development (R&D) in this sector. This focus is one of the key reasons the president nominated me for this position.
During her confirmation hearing at the National Assembly, Han responded to Democratic Party lawmaker Park Sun-won’s inquiry about SME policies. She stated that it has a duty and responsibility to actively explore more aggressive policy support for small business owners, SMEs, and startups.
Han provided insights into the current SME landscape, noting that interestingly, SMEs are thriving in the consumer goods sector, which has become a new export frontier. It’s seeing impressive growth in areas like K-beauty and food products. However, it’s facing challenges as traditional subcontractors in industries like steel and automotive, which typically work with large corporations, are experiencing rapid declines. This dichotomy is creating overall growth issues.
She continued that its primary focus is on fostering a fair trading environment. While technology theft remains a concern, it’s also looking at strengthening regulations around payment terms for deliveries within the broader trading ecosystem.
Han also addressed recent economic challenges, stating that export performance in 2022 and 2023 didn’t meet expectations under the previous administration. Moreover, there were substantial budget cuts in R&D. It’s crucial to understand that when SME budgets are slashed, the recovery time is significantly prolonged. She committed to thoroughly examining these issues.