"The launch of the Ministry of SMEs and Startups is a historic event that will change the paradigm in the economic policy of the Republic of Korea. That is because it means adding another heart to the South Korean economy that has been running with only one heart, which was the large export companies," he added, referring to his country by its official name.

Moon noted large export companies helped bring the country to its feet from the ashes of the 1950-53 Korean War.

"But a large chaebol-centered economy can no longer ensure our future. Extreme polarization and economic injustice have made the lives of most people unbearable. Growth itself may no longer be possible without changing the very economic structure that does not create jobs, raise household income and lead to wealth distribution," he said.

He insisted small and medium-sized firms were key to his new people-oriented economy, noting 3.54 million SMEs accounted for 99 percent of all private businesses in the country and 88 percent of employment.

"I am confident we can only realize both income-led growth and innovation-led growth, which are the two cornerstones of a people-oriented economy, by revitalizing small and medium-sized firms," Moon said.

"The government will place SMEs at the heart of our economy. It will protect SMEs from large companies' unfair business practices and abuse of power."

Still, Moon said SMEs and the new ministry also had many challenges ahead.

"I ask those running small and medium-sized companies to have bigger dreams and go beyond the domestic market to the rest of the world," he said, noting only about 94,000, or less than 3 percent, of the total 3.54 million SMEs here currently ship their goods and services overseas.

The ministry, he said, must work as a control tower that coordinates policies of all other government ministries to best aid SMEs.

"There is only one goal," he said. "That is to make sure SMEs can work and grow to their full capacity without having to worry about anything." (Yonhap)