As Korea’s social economy has grown rapidly, its role in broader society has also expanded. This article explores how social economy enterprises have been established under government-led policies and what recent developments are shaping the sector. 1. Government Support as a Foundation for Rapid Growth In Korea, government-led policies enabled the swift establishment of social economy organizations. Financial and institutional support for sustainable startups helped various organizations minimize risks and successfully pursue their social missions. This support became a solid foundation for the rapid expansion of social economy enterprises. One of the key systems is government certification for organizations that meet certain standards. Regardless of size, businesses such as social enterprises, cooperatives, community enterprises, self-sufficiency enterprises, and social ventures can be officially recognized as “social economy enterprises.” This certification provided a level of ...

Korea Social Enterprise Promotion Agency logo (Source: Korea Social Enterprise Promotion Agency website) What Is the Social Economy in Korea? In Korea, businesses engaged in social innovation activities are referred to as social economy enterprises. These are not simply non-profit organizations; they are enterprises that aim to solve social problems and create social value through business models. The key difference between social economy enterprises and conventional businesses lies in their core purpose. While conventional companies prioritize profit maximization, social economy enterprises pursue both profit and social value simultaneously. South Korea’s social economy grew rapidly with government support. This is a runway event in Gyeonggi Province introducing local enterprises.(Photo by Milly)  Types of Social Economy Enterprises in Korea Korea’s social economy enterprises are officially recognized and supported by the government. Major types include: Social Enterprises Hybrid ...