'Startup for All' postponed due to data leak; investigation launched

South Korea's Ministry of SMEs and Startups (MSS) has postponed the second round of its 'Startup for All' program following a significant personal information leak. The incident compromised the data of 5,000 successful applicants, including their private email addresses and startup ideas.

The ministry announced on June 22 that it is elevating the 'Startup for All' task force to be led by the vice minister. Measures include strengthening monitoring of AI solution providers, identified as the source of the leak, and offering free 'proof of original record' services for business secrets to all successful applicants. The second round of the program, initially scheduled for next month, will be delayed until the security system is fully revamped.

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We will do our best to support the idea protection process as a top priority, conduct thorough external investigations and security checks, and strive for victim relief and recurrence prevention.

The leak was discovered on June 15 when applicant profiles were posted on the 'Startup for All' platform. An AI solution provider allegedly obtained private email addresses through abnormal API calls and sent promotional emails. The MSS estimates that private emails, evaluation feedback, and brief idea summaries were leaked. However, the ministry stated that no national identification numbers, contact information, or detailed application forms were exposed, and there has been no database breach.

In response, the MSS has notified all 5,000 applicants of the data breach and initiated investigations with the National Cyber Security Center. They have also filed a police report and are cooperating with the Personal Information Protection Commission. The ministry is reinforcing its idea protection system by establishing a dedicated team and offering services like intellectual property registration and technical escrow to safeguard applicants' innovations. The ministry acknowledged that the incident has damaged public trust and pledged to hold responsible parties accountable while continuously seeking improvements based on feedback.

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The biggest problem with this leak incident is that we ultimately failed to maintain the trust of the government.