Lee So-young: "I will overcome bureaucratic barriers to regulatory reform for SMEs... I want to debate with the Chairperson of the Financial Services Commission"

[Financial News] Lee So-young, nominee for minister of the Ministry of SMEs and Startups, said labor regulations that do not fit the realities of small and medium-sized businesses, such as the 52-hour workweek system, need to be revised. She also set a goal of pursuing reforms that would change the structure of an industry, like the amendment to the Cosmetics Act, rather than merely improving regulations. If necessary, she plans to go beyond the Ministry of SMEs and Startups and persuade ministers of other ministries to ease regulations that hinder business growth.
 At a confirmation hearing held on the 15th by the National Assembly's Trade, Industry, Energy, SMEs, and Startups Committee, Lee said, "Imposing the 52-hour workweek as a uniform and stringent regulation, and sentencing business operators to up to two years in prison for violations, does not fit today's work systems and their growing diversity."
 Regarding the inclusive wage system, she stressed, "There are industries and companies for which it is not appropriate to count working hours and provide allowances accordingly. Given that such companies exist, I believe uniformly banning the system or legally restricting the wage structure itself could place an even greater burden on businesses."
 Her comments reflected the view that labor systems should be designed flexibly, taking into account businesses' autonomy and the nature of their work. Small and medium-sized businesses have long argued that regulations on the 52-hour workweek and the inclusive wage system do not sufficiently reflect the realities of workplaces where production is difficult to adjust and labor is in short supply.
 Lee also expressed her determination to find solutions for the growth and challenges of SMEs and startups, even if that means persuading ministers of relevant ministries. She promised that, after becoming a cabinet member, she would persuade not only other cabinet members but also the president if policies contrary to her convictions were pursued.
 She emphasized, "If necessary, I would like to hold a public debate with the Chairperson of the Financial Services Commission over KOSDAQ policies, which are important to small and medium-sized businesses," adding, "I will regard easing regulations imposed by other ministries as the work of the Ministry of SMEs and Startups, not someone else's responsibility, and will directly persuade and communicate with ministers of other ministries when necessary."
 She also outlined a plan to pursue regulatory reforms that would contribute to long-term industrial development, such as the amendment to the Cosmetics Act that strengthened the competitiveness of K-beauty. Lee said, "The 2011 amendment to the Cosmetics Act changed raw-material regulations to a negative-list approach, allowing companies to use a wider range of ingredients. It also separated manufacturing from sales, enabling small companies to create their own brands," adding, "I want to identify worthwhile regulatory reform initiatives and leave behind meaningful results."
 As small business owners and self-employed people face growing difficulties because of delivery-app monopolies and high commissions, she also said that online monopolies need to be addressed alongside the development of public delivery apps.
 Lee said, "I believe the difficulties that small business owners and self-employed people face because of platforms are far too great," adding, "It could be effective to regulate the private platforms currently in operation and disclose various types of information through the Online Platform Act, or through reviews of bills currently being discussed by the Ministry of SMEs and Startups."
 She added, "Developing public delivery apps into attractive and competitive services is another option," and stressed, "We will consider how to use the budget for fostering public delivery apps more efficiently, rather than simply distributing coupons."
[email protected] Lee Jumi Kim Hyun-cheol Reporter