The document discusses the development of social enterprises and social economy policy in Korea. It outlines the key milestones and policies from the early 1990s to present day. Some of the early developments include production community movements to help the poor, self-support projects, and public work programs during the economic crisis. Over time, laws and agencies to support social enterprises and cooperatives were established, though there remained a lack of systematic support and silos between ministries. The document advocates for creating integrated ecosystems with a control tower approach, customized financial infrastructure, talent cultivation, and priority on public purchasing to help social economy organizations grow sustainably through self-help and business models.

1. The Development of Social Enterprise
Ecosystems and Policy Directions
in Korea
May 12 2019
Jae-Gu Kim
(Myongji University)

2. Renovating welfare systems and Building self-help economic organization
Part 1
Early
1990s
• Production community movement in poor regions. Workers’ production
cooperatives, etc
1996
• Self-support project of the Ministry of Welfare
1997
• Public working program was launched with the economic crisis
2000
• The National Basic Living Security Act was enacted to help the self-support of
the poorest class
2003
• Social Job Project-Social service for low income, alienated class-unemployment,
polarization
2007
• The Law on the Promotion of Social Enterprises was enacted,
and 36 enterprises were certified initially
• The Framework Law on Co-operatives was enacted, so General Coop
and Social /coop could be set up by ordinary people2012

3. 우리나라도 자활기업과 사회적기업을 시작으로
정부차원에서 다양한 사회적경제조직을 활성화하기 위한 정책시도
현황과 문제점
19th National Assembly : the ruling party and the opposition party suggested A Framework Act on Social Economy (14.5, 14.10)
20th National Assembly : the opposition party suggested A Framework Act on Social Economy (16.8)
Initiating Social Enterprise and Self-help community,
Korean government introduced policies
to vitalize Social Economy Organization
S. E. Cooperative Self-helf Village E. Farming and
fishing community
Law
Ministry
Numbers
Agency
Supporting
Systems
3,000 10,090 1,400 1,300 898
Employment
and Labor
Planning and
Finance
Health and
Welfare
Gov. Admin. /
Home Affair
Agricultry and
Fishery
KOSEA KOSEA CSSF KORCC
Personnel
expenses,
Consulting,
Tax exempts
Training and
Education,
Consulting,
Personnel
expenses, Initial
Loan as the Primer
Product
Development,
Consulting
Ooperating
expenses
for 2 years
Social Ent. Cooperative Self-support Village E. Farming and
fishing communityInstitution
Ministry
Numbers
Agency
Support
Systems
3,000 10,090 1,400 1,300 898
Employment
and Labor
Planning and
Finance
Health and
Welfare
Gov. Admin.
&Home Affair
Agriculture and
Fishery
KOSEA KOSEA CSSF KORCC
Personnel
expenses,
Consulting,
Tax exempts
Training and
Education,
Consulting
Personnel
expenses, Initial
Loan as the
Primer
Product
Development,
Consulting
Operating
expenses
for 2 years

4. Still, lack of systematic support systems for cultivating sustainable
social economy organizations
Have tried to create an ecosystem which enable the
social enterprises realizing social innovation to
grow in a natural way
Present Conditions and Problems
Silo
between
Ministries
Silo
between
Social
economy orgs
Unnecessary competition between
social economy organizations may
worsen profit abilities
High dependency on government grant
due to constraints of synergy effects
through cooperation and alliance
between social economy organization
Each ministry runs similar policy
measures
Inefficiency of budget execution
Difficulty of transition between
social economy org because of
barriers between ministries

5. Communal Childcare Centers were
civil organization that run 77 centers
national wide
Lack of systematic support systems for sustainable social economy
organization because of silo effect in governments
Sectionalism
between
Government’s
Ministries
Inhibiting
alliance or
cooperating
between social
economy
organization
They tried to transform to Social
Cooperative, but Ministry of Health
and Welfare disapproved
Young rim Middle School Store Coop tried to
improve foods quality through welfare funds
which were accumulated by operating profit
Suffering difficulty to get business rights
due to minimum cost bidding systems
Spent too much time to meet the laws
and regulations
Bureaucracy and improper laws,
rules and regulations block
Communal Child
Care Coop
Middle School Store
Coop

6. Creating ecosystems which will enable the social enterprises realizing social innovation to
grow by self-help spirits and sustainable business model
through Policy support, Talent, Finance, Government Procurement
Ecosystems of Social Economy Organizations
Integrative
Control Tower
1) Coordination for
transparency and
Effectiveness
2) President Moon set
up the Presidential
Committee
Talent cultivating
and recruitment
1) Degree Program at
University
2) Education for Youth
3) Social Ventures /
Start-ups Revitalization
Customized
Financial Infra.
1) Financial Systems
for Social Economy
Organization
2) Social Value
Wholesale Fund
as a Market Builder
Priority on Public
Purchasing
1) Priority for Social
Economy Organization
2) Priority for Social
Service supported by G.
3) Performance Indicator
of Social Value for
Evaluating Government
The Strategy of fostering Social Ecosystems Ecosystem

7. Degree PG for
Advanced Management
Expanding Educational Infrastructure
for the Social Entrepreneur
Korean universities and NPOs
offer degree or non-degree
PGs for social entrepreneur
incubating / accelerating
program for social economy
organizations and start-ups.
Providing training, space,
fund, mentoring
Aligned with KOTRA,
KOICA, GYB
KAIST, HANYANG, Ewha Womens’,
Yonsei University, Graduate School
Talent :
Social
Entrepreneur
Global Talents for Social
Economy and International
Development
Incubation and
Accelerating Center

8. Customized
Financial
Infrastructure
Social Value
Wholesale
Fund 협동조합 SIB투자
Korean society and government decide to set up Social
Value Wholesale Fund as a market builder for introducing
impact investing of mainstream finance and capacity
making of social finance intermediary organization and also
promoting investment infrastructure, especially social value
measurement and evaluation systems.
-26-

9. Korea NAB (National Advisory Board) joined GSG (Global Social
Impact Investment Steering Group) as the 18th NAB on February
of 2108 for performing catalytic role in vitalizing impact investing
and financing market.
NAB (National Advisory Board) Country Report
GSG Members GSG Organization Chart

10. TO - BE
Sustaainable
Ecosystem
Infrastructure
Control Tower
Fragmented
support
Central Gov.
- led
Focus on
Local Gov.
Individual
Corporate
difficult to
coordinate
Co-Governance
Policy Orientations
Concern for
Dependency
AS - IS

11. Social Enterprise
Social Venture
Co-Operatives CSR,CSVSelf-Help
Enterprise
NGO
- Self-Support + Sustainability + Community-based
- Development of Civil Society
- Entrepreneurship + Good Governance
Importance of Social Economy

12. EV
early CSR
SV
CSV
SVM
EV SV
EV
핵심
역량
Time
SV
CSR2.0
Level of
Integration
CSR1.0
CSR3.0
[Source] K-Management 4.0, Social Value Management
(2018)
Development of the Social Value Concepts

13. 사회적 경제와 혁신성장
Human
Investment
Effective
Market
Opportunity,
Self-Help
Good GovernnceEntrepreneurship
Rent Sharing
Risk Sharing
Policies, Institutions
Impct
Investment

14. 경제산업·재계
군산에 활기를…SK E&S, 소셜 벤처 모아 도시재생 나선다
등록 :2019-03-18 15:36수정 :2019-03-18 15:50
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Local:Rise
Gunsan
SKE&S (Energy) offer ‘Incubating Office’ to
24 Social Ventures + Underdogs (Intermediary)
http://www.hani.co.kr/arti/economy/marketing/886332.html#csidx405ed457c796daca5c6c96d85e632e8