Korea’s intermediary organizations in the social economy work closely with field enterprises to drive their growth and development. (Photo by Milly) Korea’s social economy has long grown under the leadership of the central government. With the enactment of the Social Enterprise Promotion Act (2007) and the Framework Act on Cooperatives (2012), the social economy was formally institutionalized. More recently, the Act on the Fostering and Support of Village Enterprises was passed, further expanding its scope.   Today, the social economy is gaining attention not merely as a job creation policy, but as a key driver of sustainable regional development and a viable alternative for solving social problems.   The Shift Toward Local-Led Change and the Emergence of Intermediary Organizations   The center of gravity in Korea’s social economy is shifting — from the central government to local communities and the private sector. Each region has begun to build its...

The coffee beans I bought at the Incheon Social Economy Expo were also products of a village enterprise. (Photo by Milly)    In recent years, one phrase has often been heard across Korea : “ The regions are disappearing .”   Population decline, concentration in the Seoul metropolitan area , lack of jobs, and the collapse of local communities have made this an urgent and unavoidable challenge. To keep regions alive, new and practical solutions are needed.   Amid these challenges, village enterprises are drawing renewed attention. A village enterprise is not just a small business — it is a grassroots movement for social innovation , where residents come together to solve local problems and create economic opportunities using their own resources.   Until recently, village enterprises in Korea had relatively weak institutional foundations, often relying on government grants or public competitions . However, the atmosphere has started to change. In...

The  Korea Social Value Solidarity Fund  is working to create a financial ecosystem that supports the growth of social economy enterprises. (Source: Screenshot from the Korea Social Value Solidarity Fund website)   Why Social Finance ? Traditionally, finance has focused on maximizing profits. However, as social issues like climate change , inequality , aging populations , and regional decline intensify, there is a growing global movement to use capital to address these problems. Amid this shift, the concept of Social Finance has emerged. What is Social Finance?   When I first heard the term social finance, the first question that came to mind was “How is it different from conventional finance ?”   The answer is straightforward. Social finance is not just about generating profit; it aims to simultaneously solve social problems and expand social value.   In other words, social finance considers both financial returns and social/environmental impa...