Korean SMEs and Startups community breathes fresh air and high expectations following the appointment of Han Seong Sook. With a promising non-political background as former Naver CEO, Han Seok Sook is expected to lead a complete digital transformation for SMEs, ventures, and small business owners.
Former Naver CEO Han Seong Sook Officially Assumes Position as Korean New SME Minister
South Korea has formally appointed Han Seong Sook as the new Minister of SMEs and Startups, marking a major shift in the country’s policy leadership for small businesses, startups, and venture ecosystems.
This is the first time a corporate executive without prior public office experience has taken the helm of the Ministry of SMEs and Startups (MSS) since its establishment.
The presidential office finalized the appointment on July 23, 2025, just one month after President Lee Jae Myung nominated Han Seong Sook on June 23. The National Assembly confirmed her with bipartisan consensus, citing her extensive experience in digital innovation and business transformation.
Her appointment signals a bold shift in direction. The business world is watching closely to see how she will address the ministry’s numerous and complex challenges.
Former Naver CEO to Government Director: A Private Sector Leader Steps In
Han Seong Sook is best known for her tenure as the first female CEO of Naver, South Korea’s largest portal platform. She brings over three decades of frontline experience in Korea’s digital and startup ecosystem, having overseen Naver’s platform expansion, including services like LINE and Webtoon.
During her leadership, she also pioneered projects such as “Partner Square” and “Project Flower”, aimed at digitizing small business owners and empowering them through e-commerce and IP development.
Her background positions her to drive Korean digital transformation across small and mid-sized businesses, many of which remain analog or semi-digital.
“Over the past 30 years, I’ve worked on the frontlines of innovation—from startups to major corporations. I’ve experienced both success and failure.
Based on that experience, I will do my utmost to establish solid foundations for growth across the SME sector.”
Han Seong Sook, new Korean SME Minister.
Focusing on Digital Transformation and Recovery for Korean Small Businesses
Industry stakeholders are closely watching Han Seong Sook’s next steps as she inherits the new position as Korean SME minister, tasked with navigating what many describe as the worst crisis ever to hit South Korea’s small business and startup landscape.
According to recent data, over 1 million small businesses shut down in 2024—the highest number on record—while corporate bankruptcies continue to climb in 2025.
New SME Minister Han Seong Sook emphasized that digital transformation for Korean microbusinesses and startups will be a top priority. She noted that the current digital adoption rate among small merchants stands between 30–40%, far below her target of over 70%.
“The digital transformation rate among small merchants is currently just 30–40%. Our goal should be more than double that.”
Han Seong Sook, new Korean SME Minister.
Along with the statement, Minister Han Seok Sook delivered a promising policy agenda, including:
- Expanding digital infrastructure for microbusinesses,
- Strengthening “data literacy” to help businesses better utilize operational data,
- Supporting re-employment, retraining, and recovery services for closed-business operators.
- Accelerating AI adoption in traditional SMEs and building a smart manufacturing ecosystem through new legislation, including the Smart Manufacturing Industry Innovation Act.
Boosting Global Startup Competitiveness
Moreover, Han Seong Sook also aims to strengthen Korea’s position as a global startup powerhouse. Plans are underway to enhance the platform functionality of Korea Venture Investment Corp.’s mother fund (KVIC) and attract more foreign venture capital.
This aligns with the government’s broader policy initiative to become one of the world’s “Top 4 Global Startup Powerhouses.”
Not only that, but Korean new SME Minister Han Seong Sook also addressed the need for organizational reform within MSS, responding to criticism that the ministry has traditionally prioritized venture startups over small merchants.
During her hearing, lawmakers pointed out that only 114 out of 521 MSS staff are assigned to the Small Business Bureau.
“Out of 521 MSS personnel, only 114 work in the Small Business Bureau. We need an expanded and more empowered division dedicated to small businesses.”
Rep. Song Jae Bong of the Democratic Party.
Han responded by pledging to actively review structural adjustments, including potential expansion of microbusiness-focused divisions.
“I will take an active role in addressing this.”
Han Seong Sook, new Korean SME Minister.
Cautious Optimism and High Expectations for Korean New SME Minister Han Seong Sook
Industry leaders have responded with cautious optimism.
“As someone from the business world, Minister Han likely has a strong grasp of the industrial ecosystem.
We hope she will take a balanced approach—not leaning too heavily on IT or startups but also supporting traditional manufacturing SMEs.”
A spokesperson from Korean SME association.
Han Seong Sook officially began her duties as the 6th Minister of SMEs and Startups on July 24, 2025, becoming the first such minister under the Lee Jae Myung administration.
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