Rep. Lee Kwang-jae Proposes State Equity Investment for National Prosperity and Startup Protection

Representative Lee Kwang-jae of the 22nd National Assembly has articulated a comprehensive vision for national prosperity, asserting that the ultimate goal is to create a country where its citizens lead happy lives. During a recent interview, Rep. Lee emphasized a focus on improving the quality of life through direct solutions to critical issues such as employment, housing, childcare, education, healthcare, and old-age pensions. His proposals extend to innovative financial mechanisms designed to empower citizens from birth through retirement.

Rep. Lee specifically highlighted his unique proposition to mitigate the anxieties of the AI era and foster a spirit of entrepreneurial challenge. He suggested that “upon birth, 100 million won should be placed in a national fund to serve as challenge capital for individuals in their 20s, and to ensure a worry-free life in old age.” This approach, he believes, would provide a safety net and springboard for citizens to pursue ambitions without undue financial burden.

Addressing concerns regarding the current investment landscape, particularly in the realm of small and medium-sized enterprises (SMEs) and venture capital, Rep. Lee acknowledged the perceived legal gaps and blind spots within the Ministry of SMEs and Startups and new technology finance companies (NTFCs). He specifically referenced a user's concern regarding the 'OGQ incident,' which was described as potentially representing a form of corporate raiding, stating, “I am deeply looking into the OGQ incident.” He further elaborated that “the current system of subsidies is too complex, and it needs to be simplified.”

Rep. Lee proposed a transformative shift in the state's role in venture investment. Instead of merely providing financial assistance, he suggested that the government should consider a model where “the state acquires shares in companies through technology investment.” This paradigm, he argued, would liberate companies from the burden of repayment, allowing them to concentrate on technological development and growth. Furthermore, he posited that “if the state becomes wealthy, the benefits will ultimately accrue to the people.”

He underscored the critical role of human capital in corporate growth, stating, “Ultimately, a company's growth comes from its people. The ideas in people's minds are the greatest driving force.” Rep. Lee also pointed out that stock options and voting rights are crucial for attracting top talent to venture companies, yet current legal frameworks, such as holding company regulations and voting rights restrictions, often impede this process. He expressed concern that existing loopholes in the investment methods of the Ministry of SMEs and Startups and NTFCs could ultimately lead to issues like corporate raiding, echoing the sentiment that the OGQ incident appears to be “another aspect of corporate raiding.”

When pressed for specific solutions to the OGQ incident and similar issues, Rep. Lee reiterated his focus on the legal gaps within the investment frameworks. He outlined a two-pronged approach. Firstly, he advocated for a radical simplification of the convoluted subsidy system, arguing that “too many procedures and regulations can hinder corporate growth and create loopholes.” Secondly, he firmly reiterated his vision for the state to actively explore “a new method where the state acquires company shares through technology investment, beyond mere financial subsidies.” This, he concluded, would allow companies to shed repayment obligations and focus on innovation, with the state's prosperity ultimately benefiting the populace.