Korea’s Self-Support Enterprises: From Welfare to Social Innovation
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| A few years ago, a self-sufficiency enterprise provided services for a client struggling with hoarding disorder.(Photo by Milly) |
Among the many social economy organizations in South Korea, there is one type of enterprise that stands out — the Self-Support Enterprise.
The word “jahwal” (자활) in Korean means “to live independently by one’s own efforts.”
A self-support enterprise is a business jointly operated by people who are low-income earners or recipients of the National Basic Livelihood Security Program, working together to overcome poverty and achieve self-reliance.
Unlike most social enterprises that pursue social value while generating profits, self-support enterprises exist for a deeper purpose:
they help people move from being beneficiaries of welfare to becoming active contributors to their communities.
In short, they transform people from “those who receive help” into “those who give help.”
The Beginning of Self-Support Enterprises
The birth of self-support enterprises is closely tied to Korea’s economic history.
During the 1997–1998 IMF financial crisis, it became clear that welfare payments alone were not enough to overcome mass unemployment and poverty.
In response, the government enacted the National Basic Livelihood Security Act in 1999, which came into effect in 2000.
This law laid the foundation for self-support programs nationwide — including regional self-support centers and self-support enterprises.
Since then, these centers have provided opportunities for low-income individuals to work, learn new skills, and ultimately form their own enterprises.
Under the idea of “escaping poverty through work,” many people have transitioned from welfare recipients to entrepreneurs — creating a new model of empowerment.
How Self-Support Enterprises Operate
Self-support enterprises are supported by a national network led by the Ministry of Health and Welfare, the Korea Self-Support Development Institute, and both regional and local self-support centers.
To establish a self-support enterprise, at least two people who are recipients or near-recipients of welfare must come together as co-founders.
Most of these enterprises grow out of Self-Support Work Projects, which are operated by local self-support centers.
Through these programs, participants gain job experience, learn skills, and build confidence.
When ready, they can launch their own enterprise — in fields like care services, cleaning, food production, or environmental management.
Profits are usually reinvested into the business and its workers, creating a virtuous cycle that strengthens both people and their communities.
Social Impact on the Ground
The impact of self-support enterprises is visible in everyday life.
They create jobs, provide stable income, and more importantly — help participants regain self-esteem and rebuild community ties.
People who once depended solely on government assistance are now taking charge of their own lives.
Even more inspiring, many of them now provide jobs and mentorship to others who face similar challenges, laying the groundwork for a society that grows together in self-reliance.
A Story from the Field
One self-support enterprise I visited left a strong impression.
It was a cleaning service that helped an elderly woman suspected of suffering from hoarding disorder.
Her small apartment was packed floor to ceiling with unused belongings.
The cleaning and disinfection team — all members of a local self-support enterprise — worked for hours in the six-pyeong (about 20 m²) space, removing an entire truckload of waste.
But this wasn’t just cleaning work.
It was a moment of social innovation, tackling a local mental health and housing issue through hands-on community action.
The enterprise became a trusted, professional service provider in its field — and continues to operate successfully today.
Challenges and Future Possibilities
Of course, self-support enterprises still face many challenges:
they must strengthen their competitiveness, ensure financial sustainability, and develop stronger leadership and management skills.
Yet, the essence of their work remains powerful — these enterprises go beyond welfare, empowering people to rebuild their lives through meaningful work.
Across Korea, self-support enterprises continue to spark small but profound changes — helping individuals, families, and entire communities take confident steps toward independence and social inclusion.
💜Self-support enterprises give people strength, connect communities,
and open the door to self-reliance — the first step toward true social innovation.💙
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