Han Seong-suk, the Minister nominee of the Ministry of Small and Medium Enterprises and Startups, clarified allegations regarding the sponsorship of Seongnam FC and workplace bullying incidents raised during her tenure as CEO of Naver at the confirmation hearing. She stated that if appointed as Minister, she would support the recovery of small businesses and establish a fair market order.

Han Seong-suk, the Minister candidate for the Ministry of SMEs and Startups, answers questions from lawmakers at the hearing held on the 15th at the Trade. Industry Energy. SMEs. and Startups Committee in the National Assembly in Yeouido, Seoul./Courtesy of Yonhap News

The Trade, Industry, Energy, SMEs, and Startups Committee of the National Assembly held a confirmation hearing for the nominee on the 15th. The opposition People Power Party referenced incidents that occurred during Han’s time at Naver.

In particular, the People Power Party questioned whether Han was involved in the process where Naver contributed 4 billion won to Seongnam FC. The People Power Party alleged that then-Seongnam Mayor Lee Jae-myung provided assistance in resolving Naver's complaints about the construction of its second building in Bundang in exchange for a large sponsorship to Seongnam FC.

Jung Dong-man, a lawmaker from the People Power Party, asked, "Did Naver engage in unethical solicitation regarding the construction of the second building in Bundang, and did then-Mayor Lee Jae-myung request a 4 billion won sponsorship from the third party, Seongnam FC?" He further inquired if she was aware that the sponsorship increased by 1 billion won each time relevant permits were granted.

The nominee responded, "I was the overall service director at the time, so I was unaware of the relevant issues," and reiterated, "I did not get involved."

Park Seong-min, a lawmaker from the People Power Party, also questioned, "Is it true that Naver provided 1 billion won each time it received a permit for Seongnam FC?" to which the nominee replied, "I truly do not know anything about it," emphasizing that it was not a transaction motivated by consideration.

Han Seong-suk, the Minister candidate for the Ministry of SMEs and Startups, answers questions from lawmakers at the hearing held on the 15th at the Trade. Industry Energy. SMEs. and Startups Committee in the National Assembly in Yeouido, Seoul./Courtesy of Yonhap News

The nominee described the case surrounding the workplace bullying allegation that led to an employee's death during her tenure at Naver as "an incredibly shocking incident." She resigned from her position following the incident. Afterward, she served as the head of European business development and was appointed as an advisor earlier this year.

The nominee mentioned, "I believed that everyone should be held accountable for this part, which is why the entire management was replaced," adding, "I think I can say that going into the European business sector is taking responsibility. I will reflect on the matters you raised."

In 2021, an incident occurred where an employee died in an organization led by Choi In-hyuk, the head of the institutional sector at Naver. There were allegations that the cause of death was related to "workplace bullying."

As a result of this incident, the head of the institutional sector, Choi, stepped down, and the Naver Risk Management Committee, which undertook the investigation, issued him a "warning." Choi rejoined Naver's tech business division in May after approximately four years.

Regarding the controversy over allegedly gifting real estate to her mother, she stated, "I will handle the taxes related to my mother's house," adding, "Because my mother also needs tax resources, if I become the Minister, I will sell Naver stocks so that my mother can pay the gift tax."

The nominee expressed her determination to create a foundation for the growth of small and medium-sized enterprises and startups based on her experience as a first-generation expert in the information and communication (IT) sector. She stated, "I will focus on revitalizing domestic demand through consumption promotions to alleviate the difficult circumstances faced by small businesses and create conditions for small and medium-sized enterprises to become central to the artificial intelligence (AI) ecosystem."

She added, "I will correct structural issues directly linked to the survival of SMEs and small businesses, such as unfair transactions and technology theft, and establish institutional mechanisms to ensure the protection of the vulnerable," stating that during her tenure as CEO of Naver, she planned how small businesses could transition into the digital realm with "Project Flower."

Furthermore, she emphasized, "Preparing for the confirmation hearing made me feel the importance of SMEs and small businesses in our economy and the expectations the public has for the Ministry of SMEs and Startups. If I work at the Ministry, I will do my utmost to provide a social safety net for small businesses and enhance the global competitiveness of SMEs and startups."

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