Yearning for a New 'Startup Boom,' Industry Unites in Calling for an End to "Outdated Regulations"

Voices are rising from the South Korean startup community, calling for the resolution of regulations to reignite the passion for entrepreneurship and revitalize the ecosystem.

The argument is to "make Korea a good country for startups again" by ensuring fair competition, addressing regional imbalances, and creating an environment where the 40s and 50s generation can also start businesses.

On September 25, the Korea Startup Forum, together with the Democratic Party, held the 'Innovation Roundtable for a Good Country for Startups Again' at the National Assembly Member's Office Building.

The roundtable was attended by Han Sang-woo, Chairman of the Korea Startup Forum, as well as Democratic Party lawmakers from the Trade, Industry, Energy, SMEs, and Startups Committee and the National Policy Committee.

On this day, KOSFO Chairman Han Sang-woo emphasized the importance of startups, stating, "The new growth engine for the domestic economy is startups," and "It is also startups that solve the various challenges other startups face."

Startup representatives who attended the roundtable shared the difficulties they each face and pointed out the regulatory issues often cited as barriers to growth. Discussions also took place on policy improvements to strengthen the competitiveness of startups in both domestic and international markets.

Lee Hyun-jae, CEO of Esfuture, appealed for greater attention to regulatory reform, stating that the perception of startups has weakened. "The dynamism that startups possess is being blocked in many ways by regulations," he said. "I feel a sense of disappointment not just with the regulations but also with the lack of significant interest from the political sphere."

Nam Seong-jun, CEO of Dazayo, also pointed out that although a regulatory sandbox exists, startups located in regional areas are bound to lag behind in terms of technology and services. "Since most government policies are formulated in Seoul or Sejong City, what happens in the provinces is often not taken into consideration," he argued. "If regulatory sandboxes were established within local governments, we could achieve service business innovation at the regional level."

A proposal was also made to vitalize entrepreneurship among the middle-aged, represented by the 40s and 50s generation. Kim Cheol-beom, CEO of Deep.Plant, argued that a virtuous cycle of employment should be created by supporting startups for this demographic. He pointed out the lack of national-level statistics on middle-aged entrepreneurship and raised his voice for preliminary research in this area.

"It's a shame that the middle-aged, who have built up many qualifications and possess a wealth of knowledge and experience through their careers, do not have an environment to pass this on to their juniors," said CEO Kim. "National-level customized education is essential for the middle-aged to successfully settle into the startup ecosystem."

An argument was also made that the focus should be on growing the market itself, rather than just a single startup. The position is that while the significance of one small company is important, the expansion of the ecosystem through it must come first. Jeon Sang-yeol, founder of Nowbusking, said, "An industry can develop through the talent in startups, but current regulations view the relationship as one of employer and employee, creating a situation where it's difficult to focus on the work. I hope they will be seen not as employees, but as partners growing the startup ecosystem together, from the perspective of a 'running crew'."

After listening to the industry's difficulties, Jang Cheol-min, a Democratic Party lawmaker, stated forcefully, "The development of startups is no different from the development direction of our entire society. To ensure the stories from today's roundtable do not become empty talk, we will unconditionally create and implement tasks in some form or another."

Source: By Cho Sung-jun / csj0306@techm.kr