<h1>How Korea’s Social Economy Survived COVID-19: A Story of Solidarity</h1>

In the early days of the COVID-19 outbreak, I struggled to get masks. As the demand suddenly surged, the government introduced a system to allow people to purchase them in order.(Photo by Milly) 

In 2020, as the COVID-19 virus spread across the world, South Korea, too, faced an unprecedented situation. Streets emptied, companies shifted to remote work, and face-to-face encounters became rare. During that time, I also worked entirely from home, handling everything through phone calls and online tools. It was a quiet yet deeply chaotic period.

 

Small Enterprises and Local Businesses Faced a Fight for Survival

 

As in-person interaction became impossible, all businesses suffered operational disruptions. But among them, the hardest hit were small businesses and micro-enterprises. Most social economy enterprises in Korea, being small in scale, were pushed to the brink of collapse. Each day was filled with anxiety how to pay employees this month, and whether they could even stay open tomorrow. These businesses were standing on a cliff’s edge.

 

Still, Social Economy Enterprises Faced COVID-19 Differently

 

Even in this crisis, many social economy enterprises turned to the core values of the social economy: solidarity and cooperation.

 

One of the most symbolic acts was the pledge not to lay off employees. During COVID-19, it was common for companies to reduce staff out of necessity. Yet despite suffering sharp revenue losses, 147 social economy enterprises in Korea made a public declaration to maintain zero layoffs.

 

Their efforts didn’t stop there. All across the country, social economy enterprises took action to help society function without physical contact. They:

 

👉Distributed face masks

👉Assisted with sanitation and disinfection
 

👉Donated lunch boxes and snacks
 

👉Contributed emergency funds

 

One particularly memorable story comes from a regional social enterprise in the tourism/hospitality sector. They offered free accommodations to healthcare workers who had traveled from all over the country to volunteer on the front lines of COVID-19 care. I also remember how they delivered masks to elderly people in vulnerable communities seniors who had been reusing the same worn-out disposable mask for days, because they couldn’t get new ones.

 

It wasn’t just about Korea. When other countries also faced emergencies, Korean nonprofits and social economy enterprises collaborated to send masks and protective gear overseas.

 

They Also Rethought How to Survive

 

If you look at many social economy enterprises today, you'll notice some of them have shifted their business models. These pivots were born during the pandemic.

 

Many enterprises that had relied on offline sales moved online. Restaurants and cafés redesigned their operations to focus on delivery and takeout. These weren’t just handouts they were carefully redesigned business models created for resilience during a crisis.

 

Ironically, the Global Crisis Made Social Economy Enterprises Shine Even Brighter

 

When asked why they chose to keep all their employees despite financial hardship, many business owners responded

“Because people come first.”

 

The spirit of solidarity and cooperation, long emphasized by the social economy, stood out all the more during the crisis.

And for me, that was the moment I truly fell in love with the social economy.