Inside Korea’s Social Impact

  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. ...

  In a previous post, we looked at how Korea has been announcing a “Master Plan for Cooperatives” every three years since the Framework Act on Cooperatives was enacted. We also briefly reviewed the key directions of the 1st through 4th Master Plans.   <Related post> Korea Announces a “Basic Plan for Cooperatives” Every Three Years   Today, I will take a closer look at the contents of the 5th Master Plan for Cooperatives announced by the Korean government on April 6. This plan will be implemented over three years, from 2026 to 2028. The government stated that it expects cooperatives to play a “central role in solving regional problems and strengthening the social safety net.”   (Left) Cooperative establishment scale graph, (Right) Share of workers from vulnerable groups (Source: Ministry of Strategy and Finance) Current Status and Challenges of Cooperatives in Korea   Since the Framework Act on Cooperatives was enacted in 2012, more than 2,0...

  In Korea, the Framework Act on Cooperatives was enacted in 2012. Since then, the government has announced a “Basic Plan for Cooperatives” every three years, presenting policy goals to guide the direction of cooperatives and promote their activities over the next three years.   The 1st Basic Plan for Cooperatives was announced in 2014 (2014 – 2016), the 2nd in 2017 (2017 – 2019), the 3rd in 2020 (2020 – 2022), and the 4th in 2023 (2023 – 2025). On April 6, 2026, the 5th Basic Plan for Cooperatives was newly announced. The 5th plan will be applied from 2026 to 2028.   In this article, I will organize the overall direction of the Basic Plans for Cooperatives that have been announced so far.   Background of the Basic Plan for Cooperatives   Why is the Basic Plan for Cooperatives established every three years? The reason is presented in the 1st Basic Plan for Cooperatives announced in 2014. At that time, Korean society was transitioning from a perio...