South Korea Announces the 'Comprehensive Plan for the Development of the Social & Solidarity Economy’
The South Korean government has officially announced the Comprehensive Plan for the Development of the Social & Solidarity Economy. Since taking office, the current administration has included promoting the growth of the Social & Solidarity Economy (SSE) as one of its core national agenda items and has continuously sought ways to establish robust policies for its development. This ongoing effort culminated on June 30 with the unveiling of the comprehensive plan, introducing a wide array of policies designed to advance South Korea’s SSE ecosystem.
This post will explore the details of the comprehensive plan announced on June 30. Given the unique context of South Korea’s SSE ecosystem—which has achieved rapid growth primarily driven by proactive government support—there is immense anticipation regarding how this announcement will transform grassroots development. Furthermore, this initiative aligns closely with the shifting global landscape. Around the world, the indispensable role of the SSE is being increasingly recognized; international bodies like the OECD are strongly recommending that member states establish comprehensive legal, institutional, and policy frameworks for the sector. Against this backdrop of international momentum, South Korea’s SSE is poised to make even greater strides forward.
Under the overarching vision of "An Economy That Moves Together, A Happier South Korea," the comprehensive plan is built upon 3 strategic pillars and 15 core agenda items. Additionally, the government will spearhead pilot models centered around four key sectors closely linked to public welfare: caregiving, housing, energy, and rural communities.
🍍The three core strategies are as follows:
👉Supporting Growth and Competitiveness: Driving the sustainable growth of SSE organizations.
👉Creating Regional Innovation Ecosystems: Moving beyond individual enterprises to build community-based ecosystems.
👉Innovating Institutions and Infrastructure: Consolidating and linking policies previously scattered across different government ministries.
💓Supporting Growth and Competitiveness
The first pillar focuses on expanding foundational growth drivers—such as social finance, market channels, and tax incentives—while strengthening step-by-step support from incubation to maturity.
To improve financial accessibility for SSE enterprises—many of which are small-scale and have historically faced high barriers to institutional loans or financing—the government will actively promote the vitalization of social finance. Going beyond mere capital injection, the policy aims to establish an institutional framework that allows social finance to thrive self-sustainably.
Furthermore, the government will assist SSE organizations in entering both public and private markets, while expanding tax benefits and access to public properties. By reinforcing step-by-step customized support from startup to scale-up, the plan will foster an environment where organizations can achieve long-term, sustainable growth.
💕Creating Regional Innovation Ecosystems
The second strategy aims to spearhead the creation of regional innovation ecosystems, ensuring the SSE takes firm root in local communities.
First, the government will discover innovative models that solve local societal issues through human-centered approaches—rooted in the core values of 'community' and 'solidarity'—and scale them nationwide. The plan also includes nurturing young professional talent and supporting them in building long-term careers within the SSE sector. Above all, comprehensive measures will be introduced to enhance public awareness and expand citizen participation in the social economy.
💗Innovating Institutions and Infrastructure
The third strategy—innovating institutions and infrastructure—is the very reform I found most critical during my time working as a journalist. Previously, when the government provided support to the social economy, the governing bodies were fragmented: social enterprises, community businesses (maul-gieup), cooperatives, self-sufficiency enterprises (jahwal-gieup), and social ventures were all managed by different ministries.
This bureaucratic fragmentation severely lowered efficiency on the ground and caused widespread confusion. The third pillar addresses this structural issue head-on by establishing a unified legal and institutional foundation for SSE policies, creating a pan-government collaboration system, and streamlining the overall management structure.
👉👉Pioneering Lead Models in 4 High-Impact Sectors
Alongside the institutional support detailed above, the government has selected four vital sectors closely tied to citizens' daily lives—caregiving, housing, energy, and rural communities—to deploy pioneering lead models.
-Caregiving: Positioning SSE organizations as core partners in integrated community care systems.
-Housing: Expanding the supply of affordable, community-driven housing led by SSE organizations.
-Energy: Scaling 'Solar Income Villages' (community-owned solar revenue-sharing models) nationwide.
-Rural Communities: Fostering specialized, rural-type SSE organizations tailored to local needs.
👉👉Looking Ahead: The Catalyst for Sustainability
Through this comprehensive plan, the role of SSE organizations—which have long bridged the gap between the private market and the public sector—is expected to expand significantly. As major providers of essential social services such as caregiving and housing in regions facing shortages, these organizations are set to contribute heavily to resolving localized community crises.
Lately, practitioners in South Korea’s social economy have been deeply engaged in discussions on how to secure financial self-reliance and long-term viability. This newly announced comprehensive plan could very well serve as the vital catalyst needed to secure that long-term sustainability.
🌻Read related articles
Comments
Post a Comment