Regulation remains one of the most persistent hurdles for Korea’s small and medium enterprises. At the one-year mark of his tenure, SME Ombudsman Choi Seung-jae is pushing for a bold shift: elevating the Ombudsman’s office to a Presidential Office-affiliated body. The move, he argues, is critical to strengthening Korea’s business environment and startup ecosystem.
SME Ombudsman Choi Seung-jae Calls for Presidential Office Role
Marking his first year in office, Choi Seung-jae, Korea’s SME Ombudsman, urged that the Ombudsman’s office be elevated to an organization directly under the Presidential Office to strengthen its authority in driving regulatory reform.
Speaking at a press conference in Yeouido on August 18, Choi argued that the change would allow the Ombudsman to act as a “regulatory innovation control tower” for small and medium enterprises (SMEs) and microbusinesses,
“If the Ombudsman is elevated to a presidential-level body, it will gain the space and influence to engage relevant ministries more effectively and push forward regulatory improvements.”
SME Ombudsman Choi Sung-jae speaking at a press conference in Yeouido on August 18. | News1Regulatory Innovation and Grievance Resolution in Focus
Over the past year, the Korean SME Ombudsman has handled 5,082 regulatory grievance cases, resolving or improving 1,526.
Choi emphasized that the mission is not simply to increase numbers but to create consensus-driven solutions:
“The goal is not statistics alone but building agreements through careful listening to businesses’ voices.”
Among achievements, the Ombudsman recommended that 75 municipalities delete outdated joint guarantee regulations, resulting in compliance from 74 local governments.
Other outcomes included urging the Ministry of Environment to exempt autonomous vehicle R&D projects from subsidy clawbacks.
The office also launched a Business Regulatory Grievance Field Council, comprising 16 specialized institutions, to identify systemic challenges faced by SMEs and microbusinesses.
In addition, joint regional–central forums were held to surface long-standing regional regulatory barriers.
Strengthening Institutional Authority and Networks
Choi stressed that the Ombudsman must not be limited by its current framework, which receives government budgets and seconded staff but lacks direct executive power. He also argued that integrating the Ombudsman into a Presidential Office-led framework is essential to give it real effectiveness.
SME Ombudsman Choi Sung-jae holding a press conference in Yeouido on August 18. | Seoul Economic DailyThe Ombudsman’s office plans to introduce a feedback system so businesses receive updates on how their regulatory complaints are processed, standardize departmental procedures for faster resolution, and expand collaboration networks with ministries, local governments, and related agencies.
These measures are aimed at reinforcing its identity as a business regulatory grievance resolution body and enhancing trust in the field.
Field Engagement and Balanced Growth Approach
Since taking office, Choi has conducted 84 field visits, meeting more than 350 entrepreneurs nationwide.
Compared to 67 field visits in 2023, the increased outreach reflects a stronger emphasis on on-the-ground engagement. Choi highlighted that regional visits help position regulatory reform as a driver of balanced regional development,
“Regulation can result from sectoral self-interest or act as a barrier to balanced growth. We are working to dismantle both large and hidden, entrenched rules to create a more favorable environment for small business.”
Ecosystem Significance for Korea’s Venture and SME Policy
The call to elevate the Ombudsman’s office reflects broader debates about venture and SME policy in Korea.
Regulatory innovation is increasingly seen as a prerequisite for scaling startups and strengthening the Korean startup ecosystem regulation framework.
Choi stated:
“As Ombudsman overseeing SMEs and microbusinesses, I will continue working to remove regulatory obstacles and serve as a strong representative for the business community.”
His proposals underscore a shift toward embedding Korean SME regulatory innovation within the highest levels of government policymaking.
If successful, this move could reshape how Korea addresses structural challenges for entrepreneurs and position the Ombudsman as a permanent voice for small business within the country’s policy and innovation landscape.
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