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Vacant Deputy Minister for Small Businesses No. 2 Sparks Policy Fears


Vacant Deputy Minister for Small Businesses No. 2 Sparks Policy Fears

Delays in appointing the role, created through government reorganization, hinder responses to trade shifts, local revitalization, and digital transformation

The position of the 'Deputy Minister for Small Businesses, No. 2,' newly established by the Ministry of SMEs and Startups, has remained vacant for nearly a month. Although the role is evaluated as a control tower for small business policies, concerns about a policy vacuum are emerging due to delays in the appointment. There are criticisms that the response speed to current issues, such as the rapidly changing trade environment, revitalization of local commercial districts, and digital transformation, may slow down.

The Deputy Minister for Small Businesses, No. 2, newly established through last month's government reorganization, is known to be facing difficulties in selecting specific candidates. The Deputy Minister is responsible for ▲ establishing small business policies, ▲ support and fostering (promoting startups, securing sales channels, etc.) and protection (co-prosperity cooperation, support for closure and restart, etc.), and ▲ stabilizing small business management, among other related tasks.

Initially, former Cheong Wa Dae Self-Employment Secretary In Tae-yeon was considered a strong candidate, but discussions on the appointment have reportedly stalled after it became known that he is the brother-in-law of YouTuber Kim Ou-joon. Former Secretary In operated a clothing store and entered self-employment. He served as the Presidential Self-Employment Secretary, a position established by the Moon Jae-in administration in 2018.

The delay in the appointment is attributed to a 'limited candidate pool.' Initially, the government had considered former Secretary In but stepped back due to opposition from the opposition party and others. It is known that the presidential office has been coordinating the appointment process without going through a separate recommendation procedure from small business-related organizations.

A government official mentioned, 'The deputy minister must assist the minister, oversee policy implementation, design policy roadmaps, and set priorities.'

'The dedicated deputy minister for small businesses needs to have both field understanding and policy planning capabilities, but finding a person who meets these conditions is not easy,' the official said. 'It seems they are deliberating to find a suitable candidate with both field experience and policy design capabilities.'

The appointment of the No. 2 Deputy Minister was also discussed during the National Assembly audit on the 14th. Minister of SMEs and Startups Han Seong-sook stated, 'I have not received individual inquiries or mentioned any specific person,' adding, 'This is a matter to be judged by the HR authority.' She added, 'I have not expressed opinions on individual candidates,' and mentioned, 'I told the presidential office's SME secretary that it would be good if a deputy minister with expert knowledge of small businesses comes.'

There are interpretations that the appointment process will gain momentum after the National Assembly audit. Currently, personnel procedures in major ministries are effectively halted. There is an analysis that if the deputy minister appointment is rushed, the background of the appointment could escalate into a political conflict, so candidate reviews and appointments will proceed after the audit concludes.

However, there are concerns about a 'policy vacuum' in the field. Last year, the number of business owners who filed for closure, including individuals and corporations, reached 1,008,282, triggering alarms. However, due to the delayed appointment, the control tower has not been established, leading to slower responses to current issues and reduced policy clarity, according to complaints.

A small business group official said, 'The concentration of closures in domestic demand-sensitive sectors like retail and restaurants is evidence that the field is shaking without a moment to catch its breath.'

The official added, 'As challenges such as stabilizing small business management and unfair trade practices pile up, it is necessary to expedite appointments and work,' and mentioned, 'Only then can local governments and the field swiftly respond in line with government policy directions, and tangible support can be provided.'

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