President Lee's defense of startup initiative clashes with his past rhetoric on data breaches

The recent leak of ideas submitted by aspiring entrepreneurs applying for a government startup-support program has sent shockwaves through the startup community.

The Ministry of SMEs and Startups' "Startup for All" project is an online platform that hosts a nationwide startup competition. The winner is eligible for up to 1 billion won ($651,000) in financial support, including prize money.

According to the ministry, the email addresses, summaries of business ideas, and judges' evaluations of 5,000 first-round qualifiers were leaked.

While detailed business plans were not among the leaked materials, the incident could give rise to far-reaching repercussions that may be difficult to contain, including technology theft.

Even more shocking is the fact that the entity identified as being responsible for the leak is an AI company selected by the government as an official partner to help young people launch startups. The incident exposes how poorly the project was managed.

The ministry announced damage control measures, including free registration for trade-secret original certification, technology escrow services and legal advice.

However, while trade-secret original certification can be used as evidence that a trade secret existed and who first possessed it in the event of a dispute, it does not confer exclusive rights like a patent. In other words, even if someone starts a business based on an idea similar to one that was leaked, trade-secret original certification does not give the holder the legal right to prevent it.

Technology escrow protects technology by depositing it with a government-designated institution, but only companies with a business registration certificate are eligible to use it.

It is questionable how helpful the measures will be.

The "Startup for All" initiative was rolled out in earnest after President Lee Jae Myung said at a startup strategy meeting on Jan. 30 that support was needed to help people take their first steps before starting a business. In only about four months, it has expanded into a major project drawing more than 60,000 applicants.

The government needs to reflect on whether, in its eagerness to spark a startup boom, it pushed ahead too hastily with the program.

President Lee has said that companies should face consequences severe enough to make them think they could collapse if they violate information security regulations and harm the public. He has also directed the introduction of punitive fines.

The CEOs of both Coupang and Lotte Card resigned to take responsibility for the leak of customers' personal data. Coupang was hit with a record 624.7 billion won penalty.

Han Seong-sook, the prime minister nominee who also serves as Minister of SMEs and Startups, apologized Monday for the incident.

Despite criticism over the poor management of the "Startup for All" project and questions about the effectiveness of the measures to deal with the damage, Lee endorsed the program at a Cabinet meeting Tuesday, stating that "the scale, intensity and frequency of support should be expanded."

Lee also praised Han, saying that the program had drawn more participants than expected, generated strong enthusiasm, and produced many promising business ideas.

These remarks stand in stark contrast to his previous comments on data leaks at private companies.

Han's confirmation hearing begins today. Because of resistance from the ruling party, not a single witness has been called. It is hard to expect a thorough vetting.

If she is allowed to escape accountability with nothing more than an apology on her way to work, clears the confirmation hearing, and is appointed prime minister, not many people would consider that fair in comparison with the private companies that were held accountable.

Entrepreneurship involves people's livelihoods and future. Instead of forging ahead with a second open call for applications, the government should first take a careful look at how these problems came about. Above all, it can hardly regain the public trust if it does not take responsibility when things go wrong.


khnews@heraldcorp.com