[2026 Parliamentary Audit] Lee Soyoung Launches 'Regulatory Innovation Committee'... Challenges Pile Up at First Audit (Roundup)

Calls for Four Policy Priorities, Including Boosting Startups and Venture InvestmentOn Tighter KOSDAQ Delisting Criteria: "Discussion with the FSC"Gaps in Technology Theft Protections... Emphasizes Strengthening Remedies for VictimsOnnuri Gift

Lee Soyoung, Minister of SMEs and Startups, said during a parliamentary audit at the National Assembly on the 7th that the ministry would establish a Startup and Venture Regulatory Innovation Committee and actively improve regulations that hinder new industries. At her first parliamentary audit, held just 10 days after she took office, lawmakers raised not only regulatory reform but also issues requiring coordination among relevant ministries and more effective policies, including the criteria for delisting companies from KOSDAQ, technology theft from small and medium-sized enterprises, Onnuri gift certificates, and the Entrepreneurship for All initiative.

In her opening remarks at the audit of the Ministry of SMEs and Startups by the National Assembly’s Industry, Trade, Energy, SMEs and Startups Committee, Lee said, "We will establish a Startup and Venture Regulatory Innovation Committee," adding, "We will ensure that new initiatives are not blocked by regulatory barriers before they even get started." Since taking office, she has pledged to actively consult with other relevant ministries on issues that the Ministry of SMEs and Startups cannot resolve on its own, and has described herself as a "minister for regulatory reform."

Lee outlined four policy priorities: ▲promoting startups and venture investment, including by establishing the Startup and Venture Regulatory Innovation Committee; ▲supporting the recovery and revitalization of small businesses; ▲strengthening the competitiveness of small and medium-sized enterprises; and ▲creating a fair business environment that encourages mutual growth.

For small businesses, the ministry will quantify and monitor cost burdens, including rent, labor costs, interest and platform fees, and strengthen policy financing and social safety nets for vulnerable businesses. It will also support greater participation by small and medium-sized enterprises in national strategic industries, their expansion overseas, and their transition to artificial intelligence (AI). The ministry also plans to strengthen penalties for technology theft and expand cooperation for mutual growth in the platform and financial sectors.

Lee Soyoung, Minister of SMEs and Startups, answers lawmakers’ questions during a parliamentary audit of the ministry at the National Assembly on the 7th. Photo by Yoon Dongju.

Lawmakers focused on gaps in the current system and problems with its oversight during the audit. Woo Jaejun of the People Power Party said that the Financial Services Commission's tougher criteria for delisting companies from KOSDAQ could drive out small and venture businesses with growth potential. Lee said, "Judging solely by market capitalization could lead to unfair outcomes," adding, "I will try to have our views reflected, even if that means discussing the matter with the Financial Services Commission chairman."

Technology theft from small and medium-sized enterprises was also a major issue. Lawmakers said the government should address institutional gaps before a Korean-style evidence investigation system takes effect in 2028 and establish measures to provide meaningful remedies for businesses harmed by technology theft. Lee said that the ministry should address the fact that the only administrative measure it can currently take in response to technology theft is to issue a corrective recommendation. "If a system of fines is introduced under the Technology Protection Act, the best approach would be to put the fines into a fund and use it to compensate victims," she said.

Issues surrounding Onnuri gift certificates came under close scrutiny in discussions on small businesses. Park Seongmin of the People Power Party said that imported electronic products costing several million won could even be purchased with Onnuri gift certificates through the online traditional market mall. Lee said it would be contractually possible to restrict the items sold on the online traditional market mall and that the ministry would review related measures.

Allegations of illegal distribution of Onnuri gift certificates and the system for managing them also came under scrutiny. Kim Woni of the Democratic Party of Korea questioned the legitimacy of transactions at a cooperative in a traditional market in Gwangju, saying that 12.2 billion won of its 12.8 billion won in sales last year was paid using Onnuri gift certificates. Lawmakers also alleged that when the office checked the registered addresses of affiliated merchants, it found that other businesses were operating at those locations. Lee said, "We will conduct an accurate investigation not only on our own but also with the cooperation of the National Tax Service and relevant agencies, and report our findings before the comprehensive audit."

Lee Soyoung, Minister of SMEs and Startups, reviews documents during the National Assembly’s audit of the ministry by the Industry, Trade, Energy, SMEs and Startups Committee on the 7th. Yonhap News

Regarding the Youth Startup Academy, which received no budget allocation for next year, Lee said, "The alumni network built up by the Youth Startup Academy over 16 years is a valuable asset that could not be recreated even with hundreds of billions of won once it is gone." She added, "We are now looking for a way to ensure that the academy can continue operating." She also said the issue would be actively discussed during the National Assembly's budget review.

Lawmakers raised concerns about information leaks from the platform and the process for selecting its developer for Entrepreneurship for All, a new government initiative launched this year. Yoon Han-hong of the People Power Party cited Triple O, the platform developer, and asked why the existing platform would continue to be used for the second phase of the project even after the data leak. Lee said, "It is being used temporarily until a new platform is built," adding, "I understand that a new company will be selected next year to build a new platform." Regarding the data leak, she said a police investigation was underway and that some cases had been referred to prosecutors.

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