Solidarity Among Cooperatives: Cross-Sector Cooperative Federations in Korea

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 Cooperatives are organizations formed by their members. Naturally, they operate on the principles of solidarity and cooperation among members while engaging in market activities and addressing social problems. However, although they take the form of cooperatives, many operate similarly to small social economy enterprises. Because of this, individual cooperatives often face limitations in terms of market influence.

 

For this reason, the importance of cooperation between cooperatives has been increasingly emphasized in Korea. When cooperatives collaborate, they can carry out joint projects, organize collective purchasing, and respond more effectively to policy issues. Through such cooperation, cooperatives can gradually grow and strengthen their impact.

 

Scene from the Vision Declaration Ceremony of the Inter-Sectoral Cooperative Federation for People with Developmental Disabilities, founded in 2023.(Photo by Milly) 

👉In the Past, Institutional Barriers Limited Cooperation Between Cooperatives

 

In the past, however, there were certain limitations on cooperation between cooperatives. Within the social and solidarity economy, collaboration among cooperatives has long been recognized as an important value. In Korea as well, cooperatives have attempted to build cooperative structures in order to achieve shared goals.

 

However, institutional rules allowed cooperation only among cooperatives of the same type. For example, general cooperatives could form federations only with other general cooperatives, and social cooperatives could collaborate only with other social cooperatives. In other words, cooperation across different cooperative types was not legally permitted.

 

👀Legal Reform in 2020 Enabled Cross-Sector Cooperative Federations

 

The situation changed in 2020 when an amendment to Korea’s Framework Act on Cooperatives was passed by the National Assembly. The amendment included a provision allowing the establishment of cross-sector cooperative federations, meaning federations composed of different types of cooperatives.

 

Following this legal reform, various types of cooperatives—including general cooperatives, social cooperatives, consumer cooperatives, and credit cooperatives—became able to participate together in a single federation.

 

Korea’s first cross-sector cooperative federation was the Daegu-Gyeongbuk Local Food Cross-Sector Cooperative Federation, established jointly by a general cooperative, a social cooperative, and a consumer cooperative.

 

With the introduction of this new legal framework, the scope of cooperation among cooperatives has gradually expanded, creating a foundation for stronger solidarity within the broader social and solidarity economy ecosystem.

 

😎Impact of Cross-Sector Cooperative Federations

 

One of the most significant impacts of cross-sector cooperative federations is that they create a foundation for mutual growth among cooperatives and help expand the overall ecosystem.

 

For example, when individual cooperatives bring products to the market, they may face limitations in distribution or sales capacity. However, if larger cooperatives participate in the same federation, smaller cooperatives may gain better access to markets and distribution channels.

 

In this sense, federations provide an environment in which cooperatives can grow not only as individual organizations but also as part of a broader ecosystem. Over time, such structures can support the sustainable expansion and development of the cooperative sector.

 

😄Conclusion

 

It has been about five years since the legal framework allowing cross-sector cooperative federations was introduced. Since then, many such federations have been established and are currently operating in Korea. Through these federations, cooperatives expand their projects, explore strategies for sustainable survival, and build stronger collaborative networks. As a result, the cooperative ecosystem continues to grow and its social impact is gradually expanding.

 

Going forward, cross-sector cooperative federations should become even more active. They can help cooperatives strengthen their role in society while also enabling them to remain competitive in the market. In addition, these federations can serve as platforms for policy collaboration within the social and solidarity economy. In fact, some cross-sector cooperative federations already play important roles as policy partners.

 

Ultimately, while institutional conditions now allow cooperatives to collaborate more freely, the most important factor will be the willingness of cooperatives themselves to actively practice cooperation.

 

⭐⭐⭐Read related articles

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

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

 

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