<h1>The History of Social Innovation in Korea: Change Rooted in Community</h1>

Korean countryside, photographed by me. (Photo by Milly)

 Social innovation in Korea is not a recent phenomenon. In fact, it has long been embedded in the everyday lives of Korean people. Its roots lie in the culture of “community.”

Traditionally, Korean society had a strong culture of mutual aid and cooperation among neighbors. What we now call “social innovation” was already being practiced in various forms within these traditional community structures.

Some representative examples of traditional Korean community practices include Gye, Dure, Hyangyak, and Pumasi.

Gye: A system in which a group of people regularly contribute a set amount of money to a collective fund, which is then distributed to members in turn. It served as a grassroots financial tool for those without access to formal banking.

Dure: A cooperative labor system in which villagers helped each other with farming, especially during busy agricultural seasons. It was essential to the functioning of rural communities.

Hyangyak: A set of self-governing village rules aimed at maintaining moral order and promoting harmony among residents.

Pumasi: A reciprocal labor exchange culture, where people traded work rather than money, especially common during planting or harvesting seasons.

Although many of these traditions have faded over time, the spirit of solving problems together and moving forward as a community remains deeply ingrained in Korean society.

The IMF Crisis: A Turning Point for Social Innovation

The 1997 Asian Financial Crisis (often referred to in Korea as the “IMF Crisis”) was a major turning point for Korean society and its approach to social innovation. As countless people lost their jobs and inequality worsened, Korea faced an unprecedented national crisis.

In response, the community spirit once again came to life. One of the most symbolic examples was the Gold Collection Campaign, where citizens voluntarily donated their personal gold to help the country recover. This act of collective sacrifice and solidarity was extraordinary and showcased the deep-rooted communal values of Korean society.

Modern Social Economy: Institutionalizing Community Values

After the IMF crisis, Korea saw the rise of the social economy. A variety of organizations and legal frameworks emerged, including social enterprises, cooperatives, village enterprises, self-sufficiency enterprises, and social ventures.

These organizations go beyond the pursuit of profit. They contribute to job creation, local problem-solving, environmental protection, and support for marginalized groups. In many ways, they represent the institutionalized and evolved form of Korea’s traditional community values.

The history of social innovation in Korea began with a “culture of solidarity in times of hardship.” Values like community, cooperation, and sharing are still relevant today and continue to serve as powerful tools for addressing modern societal challenges.