How Do Cooperatives Respond to Social Challenges?: An Interview with Expert Ki-dae Lee (Part 2)

 Cooperatives bring together diverse stakeholders—such as local residents, workers, and consumers—to collectively address shared needs and challenges. In South Korea, cooperatives have offered practical alternatives in areas where public interest and sustainability are essential, including job creation, local economic revitalization, care services, housing, and energy transition. Through principles of democratic governance and collective ownership, cooperatives connect economic activity with social value.

 

This article is the second installment of an interview with Lee Gi-dae, one of the most prominent cooperative experts in South Korea and Deputy Director of the Research Institute affiliated with CoopBiz Cooperative. In this part, we explore the role of cooperatives in addressing social challenges and the directions needed for their sustainable development.

😎 Read Part 1😊

The Rise of K-Cooperatives: An Interview with Expert Ki-dae Lee (Part 1)

A photo of Lee Gi-dae in the field (Source: Courtesy of Lee Gi-dae)

Q. Korean society is facing multiple social challenges, including regional decline, population aging, care needs, excessive concentration in the Seoul metropolitan area, and the climate crisis. In this context, what role can cooperatives play in addressing these issues?

 

A. Rather than being entities that “solve social problems on behalf of society,” cooperatives should be understood as structures that enable sustainable solutions to social problems.

 

To put it simply, in local communities, residents can establish and operate cooperatives in areas such as community cafés, local food systems, energy, tourism, and care services. Because cooperative members are also local residents, people who actually live in these communities can meaningfully influence local policies and development directions through cooperatives.

 

One of Korea’s most pressing issues—population aging—can also be approached differently through cooperatives. Instead of viewing older adults solely as recipients of care, cooperative models allow them to participate in care itself. Compared to family-centered caregiving alone, community-based “mutual care” models, where residents support one another, offer a more sustainable long-term solution.

 

In this sense, cooperatives provide an integrated approach that connects health, care, and housing rather than treating them as separate issues. Within this structure, services such as medical support, daily living assistance, meals, and emotional care can operate as locally rooted businesses.

 

Guided by the belief that “opportunities should exist wherever people live,” cooperatives link local labor and services into platforms that address challenges such as energy, housing, and food self-sufficiency—key issues facing Korean society today.

 

Q. What do you think is most urgently needed for the Korean cooperative ecosystem to grow sustainably?

 

A. Sustainable growth of the cooperative ecosystem requires a range of supportive policies. I would highlight three key areas.

 

First, support for human resources is essential.

If it is difficult to directly fund staff for individual cooperatives, an alternative is to support regional cooperative coordinators who can assist with administrative tasks. These coordinators could provide shared administrative services, reduce costs through collective bookkeeping or joint purchasing, and increase impact through collaborative marketing. Human resource support for cooperative-led joint projects at the regional level is crucial.

 

Second, access to capital for scaling and achieving economies of scale—often referred to as patient capital—is necessary.

Like any enterprise, cooperatives require capital to operate and grow. However, many cooperatives rely heavily on member contributions as their primary source of funding. While increasing membership can raise capital, it also increases the cost and complexity of democratic decision-making.

 

The challenge of financing cooperatives must be understood structurally. Cooperatives are not established solely for profit. They restore local communities, build ecosystems through cooperation among cooperatives, and enhance member rights and well-being. Despite generating significant social value, these contributions are often undervalued by financial institutions that focus primarily on short-term economic returns. To support cooperative growth, mechanisms are needed to translate social value into economic value within financing systems.

 

Third, cooperatives should be included in public procurement priority programs.

Public procurement priority systems require public institutions to purchase a certain percentage of goods and services from designated types of enterprises. These systems help organizations secure stable demand, build revenue-based independence, and accumulate professional expertise. Including cooperatives in such programs would significantly strengthen their sustainability.

 

Q. As an active cooperative expert in Korea, what message would you like to share with those working in cooperatives in Korea and around the world?

 

A. A cooperative is not just an organization. It is a force that enables communities to endure, a structure that ensures care does not disappear, and proof that “it is possible to live together, not alone.”

 

The 2008 global financial crisis was not merely an economic downturn—it was a structural crisis caused by excessive profit-seeking, the outsourcing of risk, and irresponsible ownership structures. During this crisis, cooperative financial institutions—owned by their members—minimized investments in high-risk derivatives and focused on lending to local and real economies. As a result, they did not amplify the crisis or transmit it to local communities.

 

Worker cooperatives also chose “enduring together instead of layoffs.” Members adjusted wages and working hours collectively, sharing the burden during difficult times. Layoff rates were lower, and post-crisis employment recovery was significantly faster. This was possible because jobs were viewed not as costs, but as shared assets.

 

If the global financial crisis was driven by competition over “who can make money the fastest,” cooperatives demonstrated “who takes responsibility until the very end.”

 

Cooperatives have weathered difficult times before, and I firmly believe they will play an even greater role in the future. I hope that everyone working within cooperatives, wherever they are, continues with strength and confidence in their respective roles.

❓Do you have questions for Lee Gi-dae, a Korean cooperative expert?👀

We value your curiosity and perspectives.

If you have specific questions you would like to ask Deputy Director Lee, please send them to [email address].

Selected questions will be collected and answered in a follow-up interview.