<h1>Why Korea’s Social Economy Focuses on Local Communities</h1>

A chalkboard at a local social enterprise, reflecting their deep and ongoing struggle to craft survival strategies as part of the social economy.(Photo by Milly) 

There are many different perspectives on social economy. Generally, it is sometimes seen as an actor competing in the market economy, while in other cases, it is considered an economic model rooted in local communities. Many of those who are actively involved in the social economy would probably say that it is fundamentally an economy based on local communities.

 

😍Why Does the Social Economy Value the Local?

 

One main reason the social economy places importance on the local is that it often begins as a response to local issues.

 

For instance, in the case of social economy enterprises that aim to solve environmental problems through business, instead of taking on the grand challenge of “saving the planet,” they start with a smaller, more realistic goal like “let’s circulate our community’s waste,” and design businesses to fit that goal.

 

In many rural areas, where the elderly outnumber the youth, care and medical infrastructure are often lacking. In such cases, local residents may come together to create systems that provide necessary care and medical services for the elderly. A representative example of this is the “Medical Welfare Social Cooperative.”

 

In other areas, local tourism businesses may be built around available tourism resources, or marine-related businesses may be developed in coastal regions to tackle issues related to the ocean.

 

Such organizations secure their sustainability based on trust—trust that this is a business created by and for “me, my neighbors, and our local community.” Local residents are not just customers; they are participants, co-creators. South Korea, having a strong history of community-centered culture, is particularly well-suited for this approach. In this way, the local social economy grows from the ground up through community networks. As these initiatives succeed, similar models are often replicated in other regions facing comparable challenges. In fact, in some areas, people travel to other regions to learn from successful cases and gain insights they can bring back to their own communities. Through this, a healthy social economy ecosystem can be built across various regions of the country.

 

Social economy enterprises rooted in local areas contribute to revitalizing the region by employing local residents and strengthening cooperation with local producers in a virtuous cycle.

 

Of course, the reality in Korea today is that many local areas are suffering from depopulation, making it difficult for enterprises to generate sufficient profits locally. Therefore, many social economy enterprises are actively exploring various strategies to ensure sustainability. Still, because they are based in the community, they create systems of circulation—hiring local people, working with local producers, and helping the local area to thrive.

 

😀There Is No Social Economy Without the Local

 

As the world changes and social problems become more diverse, social economy enterprises have begun to operate in new ways, including with AI and digital technologies. Nevertheless, even through these major transformations, the social economy has continued to grow based on the local. From the COVID-19 pandemic to the ongoing climate crisis and rising inequality, the practical solutions that reflect the true spirit of the social economy will ultimately begin from “the local,” from community.

 

South Korea’s social economy has built, and continues to build, a locally based resilience.