The Role of Social Economy in Korea from a Business-Value Perspective

 In Korea, the social economy is still viewed through a wide range of perspectives. Among them, the business-value perspective understands the social economy not as simple welfare work or civic activity, but as a business model that solves social problems and creates social value. This viewpoint highlights that social economy organizations can generate sustainable economic outcomes while contributing to local communities and addressing social issues.

 

👉Combining Social Value and Economic Profit

 

As I have explained several times on this blog, social economy organizations aim not only to generate profit but also to solve social problems and maintain economic stability at the same time.

For example, a social enterprise that aims to address environmental issues connects environmental action with its business model. A social enterprise focusing on employment for people with disabilities hires workers with disabilities and sells the products they produce in the market to create revenue. The key is that social value does not remain a “good cause” but functions as an actual business model.

 

👉A Community-Based, Local Business Model

Social economy organizations operate based on their local community. Participants, local residents, and stakeholders jointly design and operate the organization.

This is not simply a donation- or sponsorship-driven approach; it is understood as a business approach that creates actual economic and social outcomes within the community. For example, local cooperatives or community-based social ventures work with local residents and turn local resources into economic opportunities.

 

👉Innovative Experimentation and Sustainability

The core of the social economy lies in solving various social problems—environment, education, care, and local issues—while ensuring organizational sustainability. Because these organizations do not rely solely on one-time events or donations, but instead build sustainable revenue models, long-term social outcomes become possible.

 

The Meaning of a Business-Value Perspective on Social Economy Enterprises

 

In Korean society, perceptions of the social economy vary widely. Some people view it mainly as civic activity or a policy tool, while others approach it from a business-value perspective.

When the social economy is viewed merely as civic activity, it is often criticized for lacking economic efficiency or sustainability. In contrast, the business-value perspective emphasizes that the social economy can realistically achieve both social problem-solving and economic performance.

 

As someone who worked as a social economy journalist in the past, I found that viewing the sector through a business-value lens was far more realistic. In practice, social economy enterprises provide stable jobs and career opportunities for youth, seniors, and people with disabilities. They also strengthen organizational sustainability by linking local problem-solving and social value creation directly to economic activities.

 

Conclusion

 

The social economy in Korea is not simply a welfare model or a civil society activity.

From a business-value standpoint, it represents a new economic platform that pursues both social value and economic performance. Social economy organizations connect communities and participants, and through sustainable business models, they enable the involvement and growth of diverse social groups.

In this sense, the authenticity and sustainability of the social economy begin from a business-value perspective, positioning it as an innovative tool capable of addressing various challenges in Korean society.

 

 ⭐You can find the background and development of Korea’s social economy at the link below.

How Korea’s Social Economy Grew with Government Support