Korea’s 2025 parliamentary audit has revealed a rising disconnect between authorities coverage ambitions and execution on the bottom. Lawmakers scrutinized how the Ministry of SMEs and Startups (MSS) manages key pillars of the innovation economic system—know-how safety, platform equity, and export assist—elevating questions in regards to the credibility of Korea’s innovation governance at a time of AI transition and international commerce volatility.
2025 Nationwide Audit Highlights Vital Coverage Gaps
The Nationwide Meeting’s Commerce, Business, Power, SMEs and Startups Committee held its audit of the Ministry of SMEs and Startups (MSS) on October 14, 2025. The session coated a broad vary of points, together with know-how theft, delivery-app fee equity, Onnuri Present Certificates misuse, and assist measures for SMEs going through U.S. tariff pressures.
Minister Han Seong-sook, who assumed workplace earlier this yr, confronted her first main coverage evaluate earlier than lawmakers. Whereas she outlined initiatives to strengthen small-business security nets and speed up digital transformation, legislators questioned whether or not these efforts are producing measurable impression.
Opposition lawmakers argued that SME coverage execution stays inconsistent and overly Seoul-centric, whereas ruling-party members pressed for stronger safeguards in commerce, know-how, and fair-commerce regulation.
Know-how Theft Instances Undermine SME Confidence
One of the crucial heated exchanges centered on mental property safety for small producers, notably within the Okay-beauty and shopper items sectors.
Rep. Heo Jong-sik (Democratic Occasion) in contrast a small firm’s beauty puff product with an almost similar model offered by Daiso:
“A small agency sells its beauty puff for five,000 received, however Daiso sells a duplicate for 1,000 received. That’s not know-how theft—it’s ethical theft.”
Minister Han Seong-sook acknowledged the know-how theft drawback, stating:
“Copying small-business merchandise in magnificence manufacturing is a severe situation. We are going to information corporations by way of the Know-how Dispute Mediation System and supply authorized advisory assist.”
Lawmakers additionally revisited the Gompyo Wheat Beer dispute between Daehan Flour Mills and SevenBrau, which stays beneath MSS-led mediation.
Regardless of the federal government’s creation of the Okay-Discovery System to strengthen proof disclosure in IP disputes, knowledge introduced to the committee confirmed that solely 58 of 256 mediation instances (22%) have reached decision since 2015—a sign of structural inefficiency.
A number of legislators, together with Rep. Search engine optimization Wang-jin (Rebuilding Korea Occasion), known as for necessary enforcement mechanisms to discourage repeat offenders and defend SME improvements crucial to Korea’s export competitiveness.
Supply Platform Equity and Payment Transparency Beneath Fireplace
The problem dominating the 2025 Nationwide Audit is the platform-economy, notably on supply apps.
Rep. Park Hyung-soo (Folks Energy Occasion) criticized the excessive service charges of three main food-delivery apps—Baemin, Coupang Eats, and Yogiyo—and their refusal to take part in authorities co-prosperity evaluations.
He additionally argued that supply platforms have created an unsustainable price burden for small retailers and proposed a fee cap system as a corrective measure.
Minister Han Seong-sook then responded that the MSS is conducting a one-month market survey in October to investigate price constructions, including:
“We are going to look at the detailed factors raised and focus on possible coverage enhancements.”
Individually, Rep. Search engine optimization Il-jun highlighted how authorities consumption coupons, designed to assist small retailers, have as a substitute generated revenue for platforms charging 6.8% transaction charges, illustrating a coverage misalignment between fiscal stimulus and fair-trade goals.
Export Decline and Coverage Accountability
Moreover, Korea’s export-oriented SMEs stay beneath strain as U.S. tariffs on metal, aluminum, and auto elements intensify.
Rep. Jeong Dong-man (Folks Energy Occasion) reported that between July and August 2025, 133 small exporters closed, and exports dropped by USD 379 million. He criticized the Export Voucher Program’s restricted choice fee (17.2%), saying it was insufficient to handle real-time tariff shocks.
Minister Han Seong-sook then conceded that voucher funds had been depleted early and emphasised plans for quicker finances execution as soon as subsequent yr’s allocation is confirmed. Lawmakers urged the ministry to situation clearer export-support pointers and guarantee SMEs can reply shortly to tariff modifications.
Onnuri Present Certificates and Governance of Public Packages
The Onnuri Present Certificates Program, established to spice up native market consumption, additionally got here beneath renewed scrutiny.
Following latest eligibility growth, lawmakers revealed that 76% of all new transactions—KRW 34.8 billion—occurred in hospitals and clinics, deviating from this system’s intent to assist small neighborhood shops.
Minister Han acknowledged that spending at giant hospitals contradicts coverage objectives and vowed to coordinate with the Ministry of the Inside and Security to strengthen monitoring and stop fraudulent redemptions.
Legislators additionally cited unresolved instances of unlawful certificates exchanges by way of regional credit score cooperatives, reinforcing requires stricter oversight of semi-public financial packages.
Platforms and Businesses Beneath Scrutiny
Woowa Brothers (Baemin) CEO Kim Beom-seok attended the audit as a witness, going through intensive questioning over revenue redistribution, delivery-app charges, and co-growth compliance.
Lawmakers urged higher transparency in platform practices, emphasizing that voluntary cooperation alone can not guarantee equity in Korea’s digital commerce ecosystem.
CEO Kim Beom-seok stated:
“We’re dedicated to dialogue and can proceed contributing by way of job creation and home funding.”
2025 Nationwide SME Audit: A Turning Level for Korea’s Innovation Governance
The 2025 parliamentary audit underscores a basic stress inside Korea’s innovation mannequin—fast digital and coverage development versus sluggish institutional adaptation. These findings reveal that whereas Korea continues to champion AI and SME digitalization, coverage execution gaps and weak enforcement capability stay obstacles to sustainable development.
The repeated criticism of know-how safety inefficiency, delivery-app dominance, and export-support shortfalls additionally indicators {that a} coverage surroundings nonetheless catching as much as market realities.
These structural flaws immediately have an effect on the credibility of government-led packages that worldwide companions and enterprise traders typically rely on to guage Korea’s innovation local weather.
Reform Crucial for the Subsequent Coverage Cycle
As Korea prepares its 2026 innovation and SME finances, the audit reveals that coverage credibility now depends upon measurable outcomes, not program bulletins.
That’s the reason Minister Han’s administration faces mounting strain to translate reform pledges into seen enhancements in intellectual-property enforcement, digital platform regulation, and export resilience.
And in the end for Korea’s startup ecosystem, the approaching yr will decide whether or not public-sector innovation governance can match the ambition of its international growth narrative—or proceed to fall in need of the accountability traders and founders anticipate.
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