[Voices from the Field] What Is Being Discussed in Korea’s Social and Solidarity Economy Sector?

Scene from the “Social and Solidarity Economy Policy and Budget Direction Forum” held on May 12, where proposals for the 2027 social and solidarity economy budget and policy direction were discussed (Photo source: Social and Solidarity Economy Korea)

 In a previous post, I mentioned that the Korean Ministry of the Interior and Safety secured KRW 11.8 billion (approximately USD 8.5 million) in support funding for the social and solidarity economy (SSE) sector in 2026. Although this amount increased compared to the previous year, many people in the field point out that it is still far below the level seen in 2022, when the sector was more actively supported.

 

Now, people working in Korea’s social and solidarity economy sector are beginning to present their opinions on the direction of policies and budgets for next year (2027). In today’s post, I would like to summarize the proposals discussed by practitioners during the “2027 Social and Solidarity Economy Policy and Budget Direction Forum,” which was held on May 12 before the government begins establishing its 2027 policies and budget plans.

 

⭐⭐To be clear, the proposals introduced in this article are ideas from the field, and nothing has been officially decided at this stage.⭐⭐

 

Proposals for the 2027 Budget and Policy Direction🌸

 

After experiencing significant cuts during the previous administration, Korea’s social and solidarity economy budget has still not fully recovered. People in the field argue that the social and solidarity economy sector — which addresses social issues such as regional decline, care services, climate change, and inequality — is now facing a new turning point.

 

In particular, since the current government has decided to promote the revitalization of the social and solidarity economy as one of its national policy agendas, practitioners argue that the policies and budgets necessary for revitalization should be actively reflected in future plans.

 

Proposed Areas for Expansion and New Projects🌷

 

👉Care Services: training programs for community integrated care coordinators (care managers), pilot food-care programs for senior community centers

👉Food Care: rural village food truck projects

👉Social Housing: customized operation support programs for specialized public rental housing residents

👉Energy Transition: support for intermediary organizations promoting resident-led energy transition projects

👉Regional Circular Economy: pilot projects for regional circular economies

👉Social Finance: establishment of a “Social Value Solidarity Investment Fund,” local government SSE funds, and matching support programs for private mutual aid and solidarity funds

👉Digital & AI: digital and AI transition support for SSE organizations, platform cooperative development, shared infrastructure support, and public-interest data trust systems

👉Ecosystem Development: support for sector-based and function-based intermediary organizations, social and solidarity economy education voucher programs

👉Education & Research: research on linking SSE with regional circular economies, and development of nationwide ecosystem evaluation and activation indexes

 

Participants explained that Korea’s future social and solidarity economy sector is expected to become even more involved in solving issues related to care, food systems, social housing, energy transition, and regional decline.

 

They also emphasized that the social and solidarity economy should fill areas that neither the public sector nor the market can fully address, while creating new forms of social value within local communities. For this reason, they argued that stronger policy support and institutional backing are necessary for the sector to continue growing.

 

Closing Thoughts🌹

 

During the forum, participants shared a common view that while 2026 could become a turning point for restoring social and solidarity economy budgets, 2027 should become a year of expansion and integration for currently fragmented SSE-related budgets.

 

They also emphasized that, as Korea moves closer to establishing a Framework Act on the Social and Solidarity Economy, policy and budget support should enable the sector to serve as a key partner in building a “basic society” centered around care, housing, energy, and food systems.

 

Korea’s social and solidarity economy sector grew rapidly in response to the 1997 IMF financial crisis, and it continues to play an important role in addressing problems deeply connected to everyday life. Beyond tackling broad social issues, organizations in the field are working to solve practical problems that people commonly experience — helping people find jobs, addressing workplace issues, creating environments where disabled friends can comfortably visit restaurants together, and building systems to care for aging parents.

 

It is still unclear what direction or scale Korea’s 2027 SSE-related policies and budgets will ultimately take. However, I personally believe that these organizations deserve enough support to continue fulfilling their role in society. In Korea, the social and solidarity economy operates between the market and the public sector, attempting to complement the limitations of both while pursuing sustainable solutions to social problems.

😀Read related articles

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Social and Solidarity Economy Adopted as a National Policy Agenda by South Korea’s Current Government (Part 1)

How Is the Field Responding After ‘Social and Solidarity Economy’ Was Adopted as a National Policy Agenda? (Part 2)