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Chosunbiz reported that Lee So-young, nominee to lead South Korea’s Ministry of SMEs and Startups, proposed using AI to evaluate small and medium-sized companies’ growth potential. The assessment would consider sales and employment alongside technology, finance, workforce, and infrastructure indicators, with export, finance, and R&D support directed toward companies judged capable of growth and scale-up.
Chosunbiz reported on Sept. 14 that Lee described the proposal in written answers submitted to South Korea’s National Assembly during her personnel hearing. The plan would use AI to analyze multiple indicators of company health and potential, rather than relying only on changes in sales or employment.
According to Chosunbiz, Lee said evaluation criteria could not be uniform for early startups, micro corporations, and small merchants. She said the government should account for each company’s characteristics so existing support is not reduced. The report did not identify a model, , responsible contractor, implementation timetable, or legal framework.
The proposal was presented alongside broader SME policies, including bundled support for innovative sectors, restructuring assistance for viable marginal companies, and a cross-ministry feedback system for measuring the effects and delivery of support programs. Chosunbiz also reported that Lee proposed expanding technology-protection measures to production, design, training data, and algorithms as AI adoption spreads.
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If implemented, the proposal could change how South Korea allocates public support to SMEs by making data-based growth assessment a central part of funding and policy decisions. That could help direct scarce resources toward companies with stronger expansion prospects, but it also raises questions about data quality, model , transparency, and whether early-stage or unconventional businesses would be fairly assessed. Chosunbiz reported the proposal from Lee’s written hearing answers; it has not been independently confirmed here as an adopted government policy.
A government AI assessment system could influence which SMEs receive export assistance, financing, research support, or commercialization help. The practical impact would therefore depend less on the label “AI” than on which data are used, how the system handles firms with limited operating histories, and whether officials treat its output as advisory or decisive.
The proposal recognizes a significant policy risk: a single score may disadvantage young companies, small merchants, or deep-tech firms whose value is not captured by near-term revenue and employment. Chosunbiz reported Lee’s intention to use differentiated criteria, but no operational safeguards or independent validation were described.
The report provides no evidence that an AI system has been built or tested, and no independent results establish that such a system would improve support allocation. The policy remains a proposal from a minister nominee rather than a confirmed program.
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Why can ethical evaluation not be reduced to one model score?
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The key developments are Lee’s confirmation, any formal policy or budget, the data and evaluation criteria selected, and safeguards for startups, microbusinesses, and small merchants. Chosunbiz did not report an implementation timeline, technical design, procurement plan, access mechanism, or cost. It also remains unknown how companies could challenge an AI-supported assessment or how the system would be audited for and accuracy.
Watch for confirmation proceedings and a formal Ministry of SMEs and Startups plan specifying the system’s purpose, data sources, evaluation metrics, and decision-making authority.
Important unknowns include whether companies will be notified when AI is used, whether they can correct data or appeal assessments, how proprietary information will be protected, and whether the system will undergo public or independent audits.
Chosunbiz did not report pricing or general availability because this is a proposed government process, not a commercial product. No immediate access is documented for SMEs.