Korea’s Small and Medium Business Administration is to be reestablished as a new government ministry. The decision was announced as Moon Jae-in’s government reorganization act was passed during a meeting at a National Assembly meeting yesterday.
The new ministry has been named the Ministry of Small and Medium Business, Venture and Enterprise, but not without a little controversy. The name received criticism as some deemed it inappropriate for a government ministry name to contain a non-Korean word. The word was initially removed, and venture organizations pushed back, but were unable to get it changed back at first. After several more changes, the term venture was finally inserted back into the name.
The Korea Federation of SMEs (KBIZ) and Korea Venture Business Association (KOVA) have both said that they welcome the introduction of the new ministry.
“We would like to welcome and express our gratitude for creating a more active venture ecosystem by establishing the Ministry of Small and Medium Business, Venture and Enterprise,” said a spokesperson for KOVA. The Ministry of Science, ICT and Future Planning will also receive the new title of Ministry of Science, Technology, Information and Communications.
The Ministry of Small and Medium Business, Venture and Enterprise will have the role of managing all policies related to venture companies and small businesses. It will also oversee any projects related to small and medium businesses from other ministries, including the Ministry of Commerce and Industry, and the Financial Services Commission.
“Through the creation of a new ministry, we look forward to the SMBA becoming more active and various policies gaining momentum,” said Seo Hyung-jun, CEO of IoT startup Toysmyth.
