Lee So-young, the nominee for Minister of Small and Medium Enterprises and Startups, has announced plans for a fundamental improvement in the cost structure for small businesses.
After visiting the Small Business Association in Yeouido, Seoul, on September 8, Lee told reporters, "Despite record growth rates, self-employed individuals feel they have nothing to show for their hard work because the cost structure has become unsustainable."
He added, "With high interest rates and inflation, when a 20,000 won order is placed, over 6,000 won goes to delivery apps in various fees. Many self-employed individuals are unable to take home any wages after covering their other expenses with the remaining amount."
Lee, who recently served on the National Assembly's Finance and Economy Committee, noted that he frequently heard pleas from small business owners who said, "It’s very difficult, but there are no effective solutions." He identified several complex crisis factors, including aggressive competition from Chinese retailers, accumulated financial debts, the shift to online retail, a declining consumer population, and the hollowing out of local commercial districts.
He emphasized the need to collect and analyze monthly income and expenditure statements from various types of small businesses to clearly identify where costs are incurred. Based on these indicators, he plans to establish improvement goals and create a roadmap to reduce the burden of scattered costs. He described this approach as a "first-time attempt by the Ministry of Small and Medium Enterprises and Startups."
Additionally, Lee expressed regret over reports regarding campaign donations and political contributions, stating, "It is unfortunate that sensational and malicious reporting occurred without even confirming basic facts." He expressed disbelief and offense at the use of terms like 'proxy donations' and 'political contributions' without verification.
Regarding allegations about his mother's housing support, he clarified that providing living expenses to support parents, as recognized by social norms, does not constitute a gift under inheritance and gift tax laws, characterizing it as fulfilling a duty of support.
The Small Business Association expressed hope that Lee, who has consistently advocated for expanding recovery funds for small businesses and supporting those who have closed during the COVID-19 pandemic, will become a minister who brings hope and vitality to small businesses. Meanwhile, Lee's confirmation hearing in the National Assembly is scheduled for September 15.
* This article has been translated by AI.
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