A Note on the Renovation of Social Enterprise in Korea: Current Status and Future Prospects

Abstract

Social enterprise activities in Korea began after 1998. Korea was facing the IMF Financial Crisis which yielded growing unemployment and slow economic growth. The government, therefore, carried out the Social Job Creation Project for the unemployed on a trial basis as ways to provide jobs to the vulnerable. Since 2004, it has become a government-wide project. Moreover in 2007, the Korean government implemented the Social Enterprise Promotion Act. Unlike those in Europe and the U.S., this system did not come to fruition from the spontaneous necessity of a social enterprise in the market, but rather came into effect in line with government-led policy objectives such as job creation to solve market dysfunctionality. In Korea, social enterprise policies were intended to incubate social enterprises through the government's unique certification systems as well as various support systems. Further, in the eight years since the implementation, it has brought about remarkable policy effects. Thus, this paper, aims to look into the present condition and issues of social enterprises which regard these policy effects as Social Enterprise Renovation and whose policies have brought significant effects in a short period of time, as well as into policy issues for the development of sustainable social enterprises. In conclusion, to see social enterprises develop sustainably, First of all, direct support methods for labor costs are improved. Second, the indirect support is expanded for self-sustaining independence. Third, the linkage and collaboration between private and community are established. This refers to establishing the economic order to realize the goal of social enterprises-the pursuit of private profits and public interests-through the social enterprises nurtured up to the present standing on fair market competitiveness.