Prime minister nominee apologizes for data breach in state entrepreneur program

Han Seong-sook, prime minister nominee and the incumbent minister of SMEs and startups, on Monday publicly apologized for a recent personal data breach involving the state-run start-up incubating program.

“I sincerely apologize to those who have experienced concern and inconvenience due to the personal data breach on the platform of the Startup For All Project,” Han told reporters while heading to prepare for her confirmation hearing.

“We failed to uphold the trust of those who took the leap into entrepreneurship with faith in the government. As the minister responsible for the program, I feel a profound sense of responsibility and deeply regret what has happened.”

Han additionally noted that relevant state authorities are jointly investigating the cause of the incident.

“[The ministry] will prepare measures to prevent any further damage and review every aspect of the system’s operation and determine whether necessary actions were taken in a timely manner,” Han said.

“This incident must not dampen young people’s aspirations and determination to pursue entrepreneurship.”

The startup minister pledged to meet directly with participants of the Startup for All Project and to accept criticism and suggestions.

The Startup for All Project is the largest government-led startup support program ever launched. It has drawn roughly 63,000 applicants.

It is one of the signature policies introduced during Han’s tenure as minister. The startup competition offers a prize of 1 billion won ($650,500) to the winner.

Security concerns emerged after unauthorized attempts to access confidential information were detected. The breach targeted entrepreneurial ideas and email addresses belonging to first-round successful applicants.

The ministry notified affected individuals last Thursday, three days after becoming aware of the incident. It also reported the breach to the Korea Internet and Security Agency the same day.

The breach was found to have been caused not by an external hacker but by a company participating in the program.

An AI solution provider — a firm supporting successful competition applicants to refine and develop their ideas — was identified to have caused the breach, according to a report submitted by the internet agency to People Power Party Rep. Kang Seung-kyoo.

Experts said the government’s follow-up response will be critical, as several stages remain before the program’s final winners are chosen.

“Any vulnerabilities in personal data management must be fully addressed, and the system should undergo a thorough review before the successful second-round applicants are announced,” said Youm Heung-youl, a cybersecurity professor at Soonchunhyang University. “Because this is a state-led project, restoring public trust will be just as important as preventing further damage.”

The ministry said it would devote its full efforts to managing the fallout from the incident.

“We deeply apologize for failing to uphold the public’s trust in the government,” said Roh Yong-seok, first vice minister of SMEs and startups, at a briefing held at the central government complex in Seoul at 2 p.m.

“A detailed investigation is currently underway in cooperation with the National Cyber Security Center, and we have also requested a police investigation,” Roh said.

The ministry said it would work with the Ministry of Intellectual Property to provide free registration of “original trade secret certification” for all 5,000 first-round successful applicants. Those who register businesses will also receive one year of free technology escrow services, a system under which core corporate technologies and other key assets are securely held by an accredited third-party institution.

In response to the breach, the ministry will also provide one-on-one consultations for entrepreneurs through more than 200 intellectual property and patent attorneys affiliated with the “Startup One-Stop Support Center."

To restore confidence in the program, the Korea Institute of Startup and Entrepreneurship Development will establish a dedicated response team to deal with information leaks. The ministry will also introduce additional security measures.

BY NOH YU-RIM [[email protected]]