<h1>The Shift in Terminology: From “Social Economy” to “Social Solidarity Economy”</h1>

Ongoing discussions on adopting the term 'Social Solidarity Economy'. This photo was taken earlier this year at a local event explaining the shift in terminology.(Photo by Milly) 

In South Korea, the term “social economy” has been widely used for many years. However, in recent times, there has been an active movement to replace this commonly used term with “social solidarity economy,” and this change is gradually taking root in the field.

 

Why change the name to “social solidarity economy”?

 

This shift in terminology stems from a desire to broaden the scope of meaning embedded in the words themselves. Traditionally, the term “social economy” referred to economic systems that create social value primarily including social enterprises, cooperatives, village enterprises, self-support businesses, and social ventures. Because of this, its role was often perceived as somewhat limited.

 

In particular, Korea’s social economy has largely developed under government-led initiatives. As a result, most support systems have focused on job creation, primarily through wage subsidies or employment-related programs.

 

But South Korea is now facing a range of complex and urgent social challenges. The climate crisis is visibly altering seasons with hotter summers, colder winters, and shorter springs and autumns. In addition, low birthrates, population aging, and rural depopulation are becoming increasingly serious. In this context, the role and responsibility of the social economy must expand to address these broader issues.

 

Against this backdrop, the term “social solidarity economy” is more than a simple rebranding. It represents a more inclusive and cooperative vision, where the social economy serves as a proactive agent in solving societal problems through solidarity and collaboration.

 

What is the “social solidarity economy”?

 

The “social solidarity economy” is a hybrid concept combining the ideas of the “social economy” and the “solidarity economy.” While the social economy typically refers to value-driven economic activity within formal structures, the solidarity economy embraces informal, community-led efforts that promote citizen collaboration and ecological well-being.

 

In other words, the social solidarity economy encompasses both formal economic activities and the voluntary, collective participation of local communities, forming a more comprehensive and inclusive model. This conceptual expansion holds the potential to generate greater social impact.

 

In fact, in one Korean region, after switching to the term “social solidarity economy” and restructuring their ecosystem accordingly, local participation increased, and revenues grew as well.

 

Challenges and tasks ahead

 

Naturally, it will take time for the term “social solidarity economy” to be fully adopted in practice. One field practitioner shared, “We can’t force people to use the new term. Everyone’s perspective must be respected.”

 

Furthermore, since the social economy and solidarity economy differ in their fundamental operating principles, there are questions and concerns about identity. The solution lies in ongoing dialogue and engagement to gradually bridge these differences.

 

Ultimately, this is not just a matter of changing words. What’s truly needed is a deeper reflection on why the change is necessary. The term “social solidarity economy” is not just a new label it symbolizes an expanded responsibility and a renewed vision for the future.

⭐⭐⭐Editorial Note

This blog currently uses the term "Social Economy" for consistency and clarity.

Should there be an official shift to using "Social Solidarity Economy", I will update future posts accordingly.