The Integration of Social and Solidarity Economy Governance: A Major Shift in Korea’s Social Impact Governance

 As mentioned several times on this blog, Korea’s social and solidarity economy organizations — such as social enterprises, cooperatives, village enterprises, self-sufficiency enterprises, and social ventures — have traditionally been managed by different government ministries depending on their policy area and support system.

 

In many countries overseas, the social and solidarity economy is often explained as a single ecosystem. Korea, however, has developed somewhat differently. While these organizations all pursue social purposes in a broad sense, they are governed by different ministries and legal systems depending on what type of organization they are classified as.

 

To put it simply, even if two organizations are both “social and solidarity economy organizations responding to the climate crisis,” they may still be subject to completely different laws and support systems depending on whether they are classified as a social enterprise or a cooperative.

 

👉Government Ministries Responsible for Social and Solidarity Economy Organizations

Social Enterprises → Ministry of Employment and Labor

Cooperatives → Ministry of Economy and Finance

Village Enterprises → Ministry of the Interior and Safety

Self-Sufficiency Enterprises → Ministry of Health and Welfare

Social Ventures → Ministry of SMEs and Startups

 

If these organizations all pursue social purposes, why has Korea operated them separately instead of managing them as one system?

 

The answer lies in the historical background of how Korea’s social and solidarity economy developed.

 

Following the IMF financial crisis, organizations such as social enterprises began to emerge more actively in Korea and rapidly expanded as policy tools designed to address social problems such as rising unemployment and welfare blind spots.

 

👉Social Problems Addressed by Each Sector

Social Enterprises → Solving employment issues

Cooperatives → Expanding shared ownership structures through citizen-centered economic organizations

Self-Sufficiency Enterprises → Poverty reduction and self-reliance support

Village Enterprises → Revitalizing local communities

Social Ventures → Entrepreneurship and technological innovation

 

In other words, Korea’s social and solidarity economy developed less around a unified philosophical framework and more as a collection of policy tools designed to solve specific social problems.

 

As each ministry operated separately without an integrated structure, support systems, evaluation standards, and budget structures inevitably differed even when organizations were doing similar work.

 

Moreover, a single organization could sometimes receive multiple certifications, such as both a social enterprise and a cooperative. However, because administrative systems were separated by ministry, organizations often had to repeat similar procedures multiple times according to the requirements of each ministry, resulting in significant administrative fatigue.

 

Governance Is Being Integrated Around the Ministry of the Interior and Safety🌸

 

The previously fragmented governance structure is now beginning to be integrated around the Ministry of the Interior and Safety.

 

What does it mean to reorganize laws and support systems around this ministry?

 

First, it can improve administrative efficiency by reducing unnecessary procedures and duplicated processes. As mentioned earlier, because policies and support systems differed by ministry, confusion frequently occurred in the field. A more integrated structure could make one-stop administrative services possible.

 

The Ministry of the Interior and Safety is primarily responsible for laws and systems related to local communities and regional governance. Therefore, the fact that this ministry is becoming a key coordinating body for the social and solidarity economy is significant in itself.

 

In particular, this shift appears closely connected to one of Korea’s biggest social challenges: regional decline and local extinction. The social and solidarity economy is increasingly being viewed as a possible strategy for sustaining local communities.

 

KRW 11.8 Billion Budget for the Social and Solidarity Economy🍁

 

This trend is also appearing in the national budget structure.

 

In December 2025, the Ministry of the Interior and Safety newly created a social and solidarity economy category within the 2026 national budget. Through this, approximately KRW 11.8 billion was secured for social and solidarity economy policies.

 

The budget, organized under projects supporting the revitalization of the social and solidarity economy, is expected to be used to develop models that create social value within local communities.

 

What makes this particularly meaningful is that the budget is being allocated collectively under the name “social and solidarity economy,” rather than being divided into fragmented categories.

 

Still, this integration process is only at its beginning stage.

 

While integrated governance may create advantages such as policy continuity and greater economies of scale, limitations clearly remain.

 

The interests of ministries that have long managed their own sectors still exist, and Korea also has not yet enacted a Framework Act on the Social and Solidarity Economy. As a result, the legal system itself remains fragmented.

 

In other words, the transition is not yet complete — Korea is still in the middle of a governance transformation process.

 

Conclusion🌷

 

Korea’s social and solidarity economy has historically grown through separate systems designed to achieve different policy goals and objectives.

 

However, the recent movement toward governance integration is meaningful because it suggests that the social and solidarity economy is increasingly being recognized as part of a broader strategy for solving regional problems and sustaining local communities.

 

Ultimately, Korea’s attempt to integrate governance structures is an effort to create stronger social impact.

 

Korea’s social and solidarity economy governance is now standing at a turning point. Yet regardless of how the system evolves, one thing remains unchanged: social and solidarity economy organizations in Korea continue to pursue social purposes and work toward solving social problems in order to build a better society.

 

🌻Read related articles

Is Social Impact in Korea Fragmented?: The Structure of the Social and Solidarity Economy

Preparing for Social and Solidarity Economy 2.0 in South Korea: Meaning and Direction